'19 Korea Smart Connected Device Shipments
Smartphones are declining, while PCs and tablets are growing by around 10%.
It must evolve into a solution that bundles SW and services.


On the 28th, Korea IDC presented the current status of the smart connected device market, including PCs, tablets, and smartphones, as well as industry trends and future outlook for 2020, in its recently published 'Domestic Smart Connected Market Report.'

According to the report , domestic smart connected device shipments in 2019 totaled 24.13 million units, a 2.0% year-on-year decrease. PCs and tablets grew by 7.2% and 12.2%, respectively, while smartphones declined by 5.9%.

This year, the market is rapidly transitioning to a non-face-to-face, contactless environment due to the COVID-19 pandemic, leading to increased demand for PCs and tablets used in online education, and the shift from desktops to laptops is accelerating due to the spread of remote work. On the other hand, smartphone users tend to hold off on replacing their devices or purchase cheaper ones as spending on other devices such as PCs and tablets increases.

Breaking down by device, PC shipments in 2019 grew 7.2% year-over-year to 4.55 million units, driven by demand for Windows 10 migration in the second half of the year. Large-scale demand was driven primarily by the public, education, military, financial, and manufacturing industries, and replacement of remaining inventory continued in the first half of 2020.

Online education and remote work are driving PC demand, but considering the massive Windows 10 migration in 2019, PC shipments in 2020 are expected to decline by 7.5% to 4.2 million units. Year-over-year growth is expected to be mixed, with growth in the first half and decline in the second half. Products with performance and reasonable prices suitable for online education and general work are preferred.

Last year, tablet shipments grew 12.2% to 2.52 million units, compared to 2.24 million the previous year. In the consumer sector, improvements in tablet-optimized entertainment, productivity, and creativity tools contributed to this growth, while in the commercial sector, steady demand for tablets as digital educational tools or as promotional gifts contributed to this growth.

Tablet shipments this year are expected to grow 11.8% to 2.82 million units. The market is expected to grow as household tablet purchases increase amid social distancing and online school openings, the adoption of tablets in non-face-to-face businesses expands after the COVID-19 pandemic, and the supply of public education digital textbooks delayed last year is also expected to drive market growth.

Smartphone shipments in 2019 were 17.06 million units, a 5.9% decrease from the previous year, and are projected to decline by another 6.3% this year to 15.98 million units due to supply disruptions and weakened consumer sentiment caused by COVID-19.

In the first half of last year, the first commercialized 5G services and 5G smartphones revitalized the market, but in the second half, demand fell significantly as benefits such as subsidies were significantly reduced due to suppliers' efforts to improve profitability.

This year, more manufacturers are expected to join the 5G market, and new products that maximize performance with cutting-edge technologies like clamshell foldables and AI/ML are expected to expand consumer choices.

Park Dan-ah, a researcher at IDC Korea, said, “Smart connected devices don’t just improve convenience and productivity, they also contribute to providing new and enjoyable experiences to users,” adding, “They are significantly increasing work efficiency with pens, dedicated OSs, detachable keyboards, and larger displays with bezel-less or foldable/dual screens.” Additionally, it was analyzed that “as connectivity with various surrounding objects and spaces, such as cars and homes, increases in the 5G environment, it is being utilized to build new lifestyles of the future.”

Kwon Sang-jun, director of IDC Korea, said, “In preparation for the post-COVID-19 era, IT innovation technologies such as video conferencing, collaboration tools, virtualization, endpoint management, and security are being introduced to maintain business continuity.” He also advised, “Since a decrease in household income and cost reduction by companies may lead to a return to mainstream and affordable products rather than premium products, the smart connected device market needs to transform into a solution form that bundles software and services in addition to devices.”