7 out of 10 Users Use High-End Phones

Seven out of ten domestic mobile phone users were found to be using high-end smartphones.

According to the 'Media Usage Characteristics of the MZ Generation' report by the Korea Information Society Development Institute on the 29th, the ownership rate of high-end (high-spec) smartphones among people aged 12 to 77 exceeded 70%. The ownership rate of high-end smartphones among the millennial generation aged 28 to 41 was as high as 90.8%. This is the result of analyzing the Korea Media Panel Survey, which targeted 4,128 households and 9,941 individuals. Kim Yunhwa, a senior researcher at the Korea Information Society Development Institute, said, "The younger generation is familiar with owning smart devices and using various media services," adding, "Especially, the millennial generation has a high ownership rate of smart devices such as high-spec smartphones, tablet PCs, and wearable devices." He continued, "The Z generation, aged 12 to 26, tends to be more proactive in adopting and utilizing new technologies, so the high-end smartphone market is expected to grow further."

The reason people are not hesitant to purchase expensive smartphones is that mobile phones have become essential daily items, and there is a psychological desire to experience the 'innovation' of brands. This is also linked to the sales strategies of phone manufacturers. In recent years, companies like Samsung Electronics and Apple have mainly released and promoted premium smartphones priced between 1 million to 2 million KRW. In particular, mid-priced smartphones have almost been discontinued. A telecommunications industry official explained, "As polarized consumption intensifies, companies are focusing on selling high-end smartphones," adding, "Brands have emphasized premium products to improve profitability, leading to a continuous increase in demand for related product lines."

Market analysis firm Korea IDC reported that the domestic smartphone market shipment volume in the first quarter of this year was approximately 3.94 million units. Among them, the shipment volume of relatively high-priced 5G products accounted for 85%, an increase of 1.8% compared to the same period last year. The market share of products priced above $800 (about 1.03 million KRW) was 65.5%, up 21.4 percentage points from the same period last year. Conversely, the market share of mid-to-low-priced products under $800 decreased to 34.5%.

The preference for high-end smartphones is a global trend. According to a survey by market research firm Counterpoint Research, premium smartphone sales accounted for 55% of the global smartphone market last year. Counterpoint Research analyzed, "As smartphones have become central to people's lives, there is a tendency for people to spend more money on smartphones and use them for longer periods," explaining, "This is why the price range above $1,000 grew by more than 30% compared to the previous year."