Korean smartphone market in 2019 decreased by 5.9% compared to the previous year
Shipments expected to drop 5–10% due to prolonged COVID-19
Opportunities in 5G, large screens, educational content, etc.


The decline in the domestic smartphone market is expected to continue.

On the 10th, IDC Korea announced that total shipments in the domestic smartphone market in 2019 amounted to approximately 17.06 million units, a 5.9% decrease compared to the previous year. Furthermore, it forecasted continued market contraction in the first half of 2020 due to the impact of COVID-19.

At the beginning of the COVID-19 pandemic, the domestic smartphone market was predicted to contract by 1.5% this year. However, as the pandemic enters a phase of widespread outbreaks, shipment volumes are expected to be further adjusted downward by about 5 to 10 percent.


5G and large-screen products, slowing market contraction
Although smartphone market shipments in 2019 decreased compared to the previous year, it was analyzed that the market was driven by increased sales of newly released 5G smartphones and large-screen products.

Last year, as the world's first 5G network service was commercialized in Korea, manufacturers and mobile carriers actively pursued marketing to gain a head start in the market, contributing to the boost in consumption of 5G smartphones.

According to data from IDC Korea, approximately 4.5 million 5G products were shipped after their launch in Korea last April, accounting for 26.6% of the total smartphone market. 5G product shipments in the third quarter, which recorded the highest total shipment volume, reached approximately 2.2 million units, accounting for a market share of 48.4%.

Although concerns regarding 5G coverage and connection stability still exist, 5G is expected to remain a major driving force leading the market this year as overseas manufacturers, such as Apple, enter the market.

The improvement in user experience through large screens in the domestic smartphone market last year is also noteworthy.

Looking at market share by screen size, phablets (5.5 inches or larger and less than 7 inches) accounted for 97.1% of the market, with 6.5-inch products, which newly entered the market, recording 16.2%. This is partly due to the increase in the size of the products themselves, but also due to the increase in screen size resulting from thinner bezels caused by advancements in manufacturing technology.

Furthermore, the introduction of foldable and dual-screen phones to the market has provided users with new experiences. Users can seamlessly multitask on large screens and enjoy video content and more comfortably.

Manufacturers continue to release flagship models larger than 6 inches featuring new form factors and high performance. From the manufacturers' perspective, this is also highly profitable.

According to IDC Korea, the sales share of smartphones larger than 6 inches is expected to increase in 2020 as well. It appears that the launch of new vertically folding clamshell-style foldable phones, along with products equipped with machine learning and AI for enhanced functionality, will maximize the smartphone user experience.


Prolonged COVID-19: A Bad News as a New Opportunity
IDC Korea predicted that the domestic smartphone market would take a major hit in the first half of 2020 due to the global spread of COVID-19 and the prolonged nature of the situation.

Recently, most manufacturers have been experiencing disruptions in the supply of components and finished products, and are delaying the launch of new models due to inventory issues with previous models or production delays. Furthermore, it appears that demand for smartphone replacements is decreasing amidst significantly dampened consumer sentiment caused by the rapid deterioration of domestic and international economies.

On the other hand, the implementation of remote work and online education is expected to have a positive impact on the market. With households requiring multiple computing devices, an increasing number of people are participating in online classes via smartphones because they were unable to prepare suitable devices in advance.

"As the number of users experiencing educational content on smartphones increases, user awareness of smartphone usability is expected to expand," said Park Dan-ah, a researcher at IDC Korea. "Smartphones have the advantage of allowing real-time viewing even while on the move, regardless of location."

At the same time, they predicted that “interest will further increase in large screens that support multitasking, as well as foldable and dual-screen products that allow simultaneous viewing of classes and note-taking by splitting the screen.”