Galaxy S22 Ultra, Best-Selling Smartphone in South Korea for Q1

Counterpoint Research Estimates
Samsung Solidifies No.1 Market Share with 77%

[Asia Economy Reporter Cha Min-young] Samsung Electronics' 'Galaxy S22 Ultra' is estimated to be the best-selling model in South Korea in the first quarter of this year. Samsung models swept the top three best-selling smartphones domestically, with Samsung Electronics recording a market share of 77%, up 10 percentage points from the same period last year.

According to market research firm Counterpoint Research on the 8th, the domestic smartphone market in the first quarter of this year decreased by 2% compared to the same period last year. This is analyzed to be due to weakened consumer sentiment caused by the resurgence of COVID-19 and economic uncertainties.

The best-selling model in the domestic smartphone market in the first quarter was Samsung Electronics' highest-spec model in the 'Galaxy S22 series' launched in February, the 'Galaxy S22 Ultra.' Neither Counterpoint Research nor Samsung Electronics disclosed specific sales figures or estimates, but according to Samsung's own tally released in early April, the Galaxy S22 series surpassed 1 million units sold 43 days after its February launch, on April 8. The second place was taken by the 'Galaxy Z Flip3,' which pioneered the foldable phone era through form factor differentiation.

The third place was also taken by a Samsung mid-range model, the 'Galaxy XCover 5.' The XCover 5 performed unexpectedly well by entering the top 10 best-selling models immediately after its release. With a low retail price under 300,000 KRW and the high durability characteristic of rugged smartphones, it has been steadily selling as a kids' phone or an outdoor-specialized smartphone since its launch, ranking within the top 10. Another advantage of the XCover 5 is that, as an LTE smartphone, it is free from 5G plans.

With both flagship and cost-effective (price-to-performance) models showing strong performance, Samsung Electronics solidified its first place with a 77% market share this quarter. By absorbing existing Galaxy Note users through the S22 Ultra, it quickly increased pre-order sales and succeeded in expanding its market share. Although the early momentum was dampened by the Game Optimizing Service (GOS) issue in early March, Samsung mitigated the sales decline by raising official subsidies faster than the previous model. The Z Flip3 also maintained high sales by lowering prices across various sales channels and releasing limited editions in collaboration with other brands.

The overall domestic smartphone market size shrank by about 2% compared to the same period last year. This is attributed to weakened consumer sentiment due to the resurgence of COVID-19 and economic uncertainties.

The market outlook for the second quarter is also not optimistic. Counterpoint Research noted, "Although a rebound was initially expected thanks to the releases of the 'Galaxy A23,' 'Galaxy A53,' and 'iPhone SE' at the end of March, consumer sentiment has been dampened by the unresolved lockdowns in major regions of China due to COVID-19 and the prolonged Russia-Ukraine war, raising concerns about a global economic recession." It is also expected that South Korea will see a decline compared to the previous year in line with global trends.