Smartphone Prices Exceeding 1 Million Won... Korea Has the Highest? [Chosun Price Records]

(43) iPhone Surpassed 1 Million Won in 2014
Galaxy Basic Models Over 1 Million Won Starting from S10+

Smartphone prices have been steadily rising, especially for premium models such as Apple iPhones and Samsung Galaxy devices. It has become common for smartphones to be released at prices well over 1 million KRW. Due to the smartphone market in Korea being largely dominated by iPhone and Galaxy, many consumers use smartphones priced above 1 million KRW. However, compared to other countries, the cost of purchasing premium smartphones in Korea is relatively affordable.

Historical Prices of iPhone and Galaxy

As of the 1st, most iPhone and Galaxy models sold domestically are priced above 1 million KRW. The iPhone 16 (128GB) released this year has a retail price of 1.25 million KRW, while the Galaxy S24 (256GB) is priced at 1,155,000 KRW.

Citizens are lining up to enter for purchases at the Apple Store in Myeongdong, Jung-gu, Seoul. Photo by Yonhap News

The launch price of the standard iPhone line was 990,000 KRW based on the 64GB capacity, which was the default until 2019. Although the iPhone 6 128GB and iPhone 6+ 64GB released in 2014 first exceeded 1 million KRW with prices of 1,056,000 KRW each, this was limited to higher-spec models. The iPhone 12 in 2020 saw a price increase of 100,000 KRW, adjusting to 1.09 million KRW. From 2021, the base capacity of the iPhone increased from 64GB to 128GB, and the retail prices of the iPhone 14, 15, and 16 released after 2022 jumped to 1.25 million KRW. Essentially, since 2020, it has become difficult to find new iPhones priced below 1 million KRW.

Samsung's Galaxy S series started with a launch price of 943,000 KRW in 2010. The subsequent 2011 S2 model was priced lower at 847,000 KRW, and the 2012 S3 was 904,000 KRW. The first time a standard model exceeded 1 million KRW was with the S10 released in 2019, priced at 1,056,000 KRW. The price rose again to 1.25 million KRW with the S20.

Citizens are lining up at the Samsung Electronics Galaxy Experience Zone set up near Pla?a de Catalunya in Barcelona, Spain. Photo by Joint Press Corps

The S23 and S24 models released between 2022 and 2024 are both priced at 1,155,000 KRW, maintaining a price range above 1 million KRW. The first Galaxy series model to exceed 1 million KRW, including flagship models, was the Galaxy Note 2 (64GB) in 2012, which had a retail price of 1,155,000 KRW.

8 out of 10 Smartphones are 'Premium'... Phone Prices Soar

According to the device price statistics in the 2024 Mobile Communication Industry and Service Guidebook published by the Korea Telecommunications Operators Association, the average price of smartphones rose from 554,713 KRW in 2015 to 873,597 KRW in 2023. Among devices released domestically, 80% are premium devices with an average price exceeding 1.39 million KRW. As the proportion of high-priced devices increased, the average device price also rose. This has increased the financial burden on households for device expenses. The share of digital expenditure in household spending increased more than twofold from about 18,600 KRW (12.2%) in 2011 to 48,600 KRW (27.4%) in 2022.

However, premium phone prices in Korea are found to be cheaper compared to other countries. According to a survey by the Broadcasting and Communications User Information Portal WiseUser, the Samsung Galaxy S23 (256GB) is the third cheapest among 12 countries based on the SKT carrier retail price, and the second cheapest among 16 countries for unlocked devices. The Apple iPhone 15 (128GB) is also the third cheapest among 11 countries based on SKT retail price and the seventh cheapest among 17 countries for unlocked devices. Prices vary depending on exchange rates at the time of the smartphone price survey, market size, inflation, value-added tax, and other factors. The comparison countries include 17 nations such as the United States, Japan, Germany, France, the United Kingdom, and China.

Rapidly Rising Smartphone Prices... Expansion of the Refurbished Phone Market

As smartphone prices rise, consumers worldwide are increasingly seeking refurbished phones.

Refurbished phones are devices that manufacturers or sellers have repaired and resold. These include products returned due to simple buyer's remorse, display models, or devices with minor defects repaired by specialized repair companies, distinguishing them from used phones. Refurbished phones offer the same performance as new products but are priced lower than regular products, creating a perception of high cost-effectiveness.

Market research firm Spherical Insights predicts that the global refurbished phone market, valued at 818.5 million USD (approximately 1.09 trillion KRW) this year, will grow at an average annual rate of 12.10%, reaching 2.564 billion USD (approximately 3.4 trillion KRW) by 2034, ten years from now.