Galaxy Pushes, iPhone Pulls... Will 5G Subscribers Rise Again in the Second Half?

Expected to Surpass 30 Million People by the End of the Year

[Asia Economy Reporter Oh Su-yeon] Samsung Electronics recently unveiled the Galaxy Z Fold and Flip4 series, and Apple is set to launch the iPhone 14 next month. This is expected to ignite the recently sluggish growth in 5G subscribers.

According to the telecommunications industry on the 21st, Samsung Electronics introduced the Galaxy Z Fold and Flip4 on the 10th. Pre-orders began on the 16th, with the official release date set for the 26th.

Bloomberg reported that Apple plans to hold an online event to unveil the iPhone 14 on September 7 (local time). If this proceeds as planned, the release will be one week earlier than usual.

With the two major smartphone manufacturers releasing new products consecutively, the growth in 5G subscribers in the second half of the year is expected to pick up again.

The industry expects the number of 5G subscribers to surpass 30 million by the end of the year.

According to the Ministry of Science and ICT's "Wireless Communication Service Statistics," as of the end of June, the number of 5G subscribers was 24,586,498. This is an increase of 543,860 (2.26%) compared to the previous month.

The increase in 5G subscribers has been steadily declining since February, when the Galaxy S22 series was released, recording 716,039 new subscribers. In March, it dropped to 623,246, and in April, it recorded 564,912, with the 5G subscriber growth rate falling to the 500,000 range. In May, it increased by 571,513, continuing the 500,000-level growth for three consecutive months through June.

Summer is traditionally an off-season for device replacement demand. Additionally, the contraction in consumption due to economic instability caused by inflation and interest rate hikes in the first half of the year is believed to have led to a decrease in smartphone purchases.

Accordingly, there is growing anticipation as to whether the release of new flagship smartphones from major manufacturers will reignite the growth in 5G subscribers, which had slowed down.

Last year, the release of the Galaxy Z Fold and Flip3 led to an increase of 718,201 5G subscribers in August compared to the previous month. In October, the launch of the iPhone 13 contributed to an increase of 975,217, and in November, the number rose by 808,838, surpassing 20 million 5G subscribers.

This year, the effect of launching mid-tier 5G plans is also expected to contribute.

The telecommunications industry is also anticipating the impact of flagship device releases from major manufacturers. According to the three major mobile carriers, the pre-order performance of the Galaxy Z Fold and Flip4 on the first day is similar to or better than that of the previous models.