More Customers Plump for Affordable Smartphones

Affordable smartphones are getting more popular now that specs have improved and there is not much a high-end phone can do that they cannot.

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With package deals and discounts from telecom operators, these phones cost between W100,000 and W300,000 (US$1=W1,182).

Sales of Samsung's mid-range Galaxy Grand Max, for example, totaled 700,000 since its release in January of this year.

This shows that consumers, who once lined up all night to get their hands on the latest top-range models, have become more pragmatic.

One industry insider said, "As consumers grow more experienced with smartphone use, they increasingly favor handsets that do what they need them to do rather than the latest high-end models".

Consumers increasingly favor phones that are cheap considering their specs. One staffer at a telecom company said, "Consumers in their 20s and 30s are style-conscious, but teens and older customers just tend to look for a reasonably priced phone".

Analysis of the customers who bought LG's affordable Band Play, which was released last month, shows 29 percent were in their teens. It was designed to appeal to the age group by offering a high-resolution camera. Mindful of the propensity of teens to take selfies, the phone comes with a 5 megapixel camera, which is the same as the camera of the Galaxy S6.

LG also threw in premium earphones to appeal to teens' taste for music. But the Band Play costs only W349,800 and the price goes down to W150,800 with a two-year subscription.

Folder-type smartphones, such as Samsung's Galaxy Folder or LG's Gentle, are also experiencing a renaissance. They allow users to type in text using conventional buttons, a setup that has gained a following among older consumers who are used to older models.

They also cost less than top-range products at between W100,000 and W300,000.

Smartphone makers have also shifted away from their tactic of focusing on premium smartphones. Samsung last month unveiled three low- to mid-priced smartphones -- the Galaxy A8 (W649,000), J5 and Galaxy Folder.

LG also released five smartphones in the low- to mid-price range this year, including the Volt Android smartphone that costs just W297,000 and G Style costing W319,000 in April.

Just a year ago, the market here was still dominated by premium models, with 60 percent of all smartphones sold by SK Telecom in September last year costing more than W700,000. There were only six models that cost less than W400,000 at the time accounting for just 20 percent of total sales.

But in the second quarter of this year, high-end smartphones accounted for just 47 percent of total sales, and those costing less than W400,000 accounted for 45 percent.

Many low- to mid-priced phones now look much the same as premium models. The Samsung A8 is very similar in appearance to the Galaxy Note 4. And the cheaper phones boast pretty impressive specs. LG's G3 Screen, for instance, costs W451,000, but is similar in function to the high-end G3.