In South Korea, Apple has recorded its highest-ever market share. According to market research firm Counterpoint Research, last year, Apple exceeded a 25% market share in the domestic smartphone market for the first time, having increased its market share by 1 percentage point annually since 2020 and by 3 percentage points last year.
While Apple has shown a steep increase in market share, Samsung Electronics’ share has declined. Although Samsung still leads with a 73% market share, this represents a decrease of about 2 percentage points compared to the previous year. The market share for all other manufacturers combined barely reached 2%.
The industry attributes Apple’s growth to the influence of the MZ generation (people in their 20s and 30s). According to industry analysis, 8 out of 10 pre-order purchasers of the iPhone 15 released last year were in their 20s and 30s. The price of the most expensive iPhone 15 model, the Pro Max 1TB, is 2.5 million won (US$1,874), which is over 400,000 won more than Samsung Electronics’ flagship model, the Galaxy S24 Ultra.
Despite its high-price policy, the iPhone has been selling rapidly, and Apple has been quickly increasing the number of its stores in South Korea to capture more market share. Last year, Apple opened the “Apple Gangnam” and “Apple Hanam” stores, and last month, it opened an “Apple Hongdae” store. This marks aggressive growth compared to having only one store on Garosu-gil in the Gangnam District of Seoul until 2018.
On the other hand, Samsung Electronics’ main customer base is older than that of the iPhone. According to SK telecom, more than half of the pre-order customers for the Galaxy S24 series are in their 30s and 40s.
The industry is focusing on whether Samsung Electronics’ artificial intelligence features, introduced with the Galaxy S24 series, can counter Apple’s growth momentum and change the game. The Galaxy S24 series, dubbed the “AI phone,” set a new record for the Galaxy S series with pre-sales of 1.21 million units.