Seeking Alternative Demands
The average smartphone penetration rate in 50 major countries is at close to 70% this year. With the world smartphone market saturation realized, it becomes a challenging task for smartphone makers to keep up with the “alternative demands” beyond the developments of the emerging markets.
According to the market researchers of TNS Korea and KT Economics Research Institute on June 30, the smartphone penetration rate as of March this year in the 50 major countries was 69.5%, close to 70%, meaning that 7 out of every 10 cell phones are smartphones. The rate increased 5% from a year ago. The penetration rate last year was 64%.
In 13 countries among the countries, the penetration rate exceeded 80%, more than doubled in the number that was 5 countries last year. Ukraine was the only country with a 35% penetration rate.
As of March this year, the penetration rate in Korea recorded 91%, which increased 8% year-on-year from 83% last year. Korea put its name on the top list of countries with highest smartphone penetration rate together with Singapore and UAE that also had the same penetration rate as Korea. The rates for U.S. And China were 72% and 79% respectively.
As the smartphone market heading towards the saturation stage after passing the mature stage, smartphone manufacturers are focusing on the alternative demands. In particular, Samsung and Apple are operating an exchange program targeting the consumers who change their smartphones. The service enables the consumer to get a new smartphone without paying for the remaining installment if they return their used smartphones. Hence, it is a marketing program to keep up with consumers to change the smartphones.