South Korea's smartphone sales dip despite stable demand

Premium segment captured 73.2% market share.

South Korea's smartphone market shipped approximately 3.78 million units in the first quarter of 2026, a 0.5% year-on-year decline, according to IDC Korea.

The contraction came despite stable consumer sentiment, as persistent inflation, financial market volatility, and geopolitical uncertainty in the Middle East dampened purchasing intent.

Smartphones priced at $800 and above captured a 73.2% share of the market, a double-digit increase from the same period a year earlier.

The mid-to-low price segment, by contrast, lost share YoY despite new model releases, as economic headwinds and early inventory buildup ahead of the new academic season weighed on demand.

5G penetration continued to climb, reaching 95.5% of total shipments, up from the prior year, reflecting both flagship momentum and an expanding range of affordable 5G handsets at lower price tiers.

Moreover, the foldable segment delivered the most striking growth of the quarter as shipments reached 190,000 units, representing triple-digit percentage growth YoY.

Jihae Kang, a researcher in the mobile phone market research team at IDC Korea, said leading manufacturers would continue prioritising flagship products to stimulate demand through the first half of 2026.

Despite market headwinds, Kang said manufacturers were expected to pursue profitability through price increases on high-capacity models and an expansion of direct sales channels.