Smartphone prices, particularly for premium models such as Apple iPhone and Samsung Galaxy, have been steadily increasing. It has become common for new smartphones to be released at prices well over 1 million won. Due to the unique market structure in Korea, which is divided between the iPhone and Galaxy, there are many consumers using smartphones priced over 1 million won. However, the cost of purchasing premium smartphones is relatively low compared to other countries.

원본보기 아이콘

원본보기 아이콘

As of the 1st of this month, most iPhone and Galaxy models sold in Korea are priced above 1 million won. The launch price of this year's iPhone 16 (128GB) is 1,250,000 won, and the Galaxy S24 (256GB) is 1,155,000 won.

The launch price of the standard iPhone line was 990,000 won for the 64GB base model until 2019. Although the iPhone 6 128GB and iPhone 6+ 64GB, released in 2014, surpassed the 1 million won mark for the first time at 1,056,000 won, this was limited to higher-spec models. In 2020, the iPhone 12 saw a 100,000 won increase, reaching 1,090,000 won. From 2021, the base storage for iPhones was upgraded from 64GB to 128GB, and the launch prices of the iPhone 14, 15, and 16, released after 2022, jumped to 1,250,000 won. In effect, since 2020, it has become difficult to find a new iPhone priced below 1 million won.

The launch price of Samsung's Galaxy S series was 943,000 won when it debuted in 2010. The 2011 S2 model was 847,000 won, and the 2012 S3 was 904,000 won, meaning prices actually decreased. The standard model first exceeded 1 million won with the S10, released in 2019, at 1,056,000 won. Subsequently, the price of the S20 rose again to 1,250,000 won.

Both the S23 and S24, released between 2022 and 2024, are priced at 1,155,000 won, maintaining a price point above 1 million won. Including flagship models, the first Galaxy series to exceed 1 million won was the Galaxy Note 2 (64GB) in 2012, which had a launch price of 1,155,000 won.

원본보기 아이콘

원본보기 아이콘

According to the device price statistics in the 2024 Mobile Communication Industry and Service Guidebook published by the Korea Association for ICT Promotion, the average price of smartphones rose from 554,713 won in 2015 to 873,597 won in 2023. Of the devices released domestically, 80% are premium models with an average price of 1,390,000 won or more. As the proportion of high-priced devices increases, the average device price has also risen. Consequently, the burden of device costs on households has grown. The share of digital spending in household expenditures more than doubled, from about 18,600 won (12.2%) in 2011 to 48,600 won (27.4%) in 2022.

However, the price of premium phones in Korea is found to be lower than in other countries. According to a survey by the WiseUser portal for broadcasting and communications users, the Samsung Galaxy S23 (256GB) was the third cheapest among 12 countries based on SKT's launch price, and the unlocked version was the second cheapest among 16 countries. The Apple iPhone 15 (128GB) was also the third cheapest among 11 countries based on SKT's launch price, and the unlocked version was the seventh cheapest among 17 countries. Prices differ depending on the exchange rate at the time of the survey, market size, price levels, and value-added tax in each country. The comparison countries include the United States, Japan, Germany, France, the United Kingdom, China, and 17 others.

Galaxy S21 256G Refurbished Unlocked Phone Sold on Coupang. Screenshot from Coupang Website

원본보기 아이콘

As smartphone prices climb, more consumers worldwide are turning to refurbished phones.

Refurbished phones are devices that have been reconditioned and resold by manufacturers or retailers. Unlike used phones, these are devices that have been returned due to simple change of mind, display models, or products with minor defects, which are then repaired by specialized service providers before being resold. Refurbished phones are perceived to offer high 'value for money' as they perform like new but are cheaper than brand-new products.

According to market research firm Spherical Insights, the global refurbished phone market is expected to grow at an average annual rate of 12.10%, from $818.5 million (about 1.09 trillion won) this year to $2.564 billion (about 3.4 trillion won) in 2034.