2014년 10월 13일 월요일

Smartphone Replacement Rate in South Korea Tops Among OECD Countries

According to the data released by Strategy Analytics (SA), Korea is still number one in smartphone replacement rate and replacement cycle in the world.
In particular, it is estimated that average replacement cycle of smartphones in Korea is 15.6 months, meaning Koreans are virtually replacing their phones every time the latest models from Samsung and Apple such as the Galaxy and new iPhone is released.

United States was third place at replacement rate 65.8%, replacement cycle 19.2 months followed by England in fourth with 60.2%.

Korean smartphone users changed their phones more frequently than in any other country last year. The figure indicates more than two-thirds of users bought new phones. The report covered a total of 88 countries.

In Korea, most consumers sign a two-year contract with mobile carriers who subsidize their smartphones. Given that consumers tend to change their phones after the contract ends, the replacement rate could be expected to be about 50 percent. The higher rate of replacement means a large number of Korean consumers switch to a new phone even before their contract expires.

Some experts pointed out that, "Korean's frequent smartphones replacement rate is due to Korea mobile carriers and manufacturers benefited in a way that induces an expensive plan by concentrate government subsidies to the latest smartphone"
"This causes over-consumption of smartphones which brings waste of resources and increased household communication expense."


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