The price of mobile phones in Korea was even high compared to other countries that had a similar income level. (image: Kobiz Media / Korea Bizwire)
SEOUL, Aug. 31 (Korea Bizwire) – It turns out that cell phone prices in Korea are higher than anywhere else in the world.
According to Gartner, a market research company, cell phone prices in Korea were highest among the 29 members of the OECD. Also, prices of smart phones ranked second.
From 2011 to 2014, 27 countries except Poland and Israel lowered cell phone prices by an average of 15 percent (20 dollars). Twenty countries, including Australia (40 percent), New Zealand (33 percent) and Japan (33 percent) showed a decrease of more than 10 percent.
But Korea only showed a seven percent decrease, making prices the highest among all countries.
Officials explain that the small price decrease was the main reason for Korean prices remaining high compared to elsewhere in the world. “The cost of cell phones in Korea was already high, but the price cuts during the past 3 years were about half of the international standard, making prices higher than anywhere else.”
The price of smartphones increased in 28 countries, with the exception of Turkey, by an average of 40 percent (136 dollars). Although the increase in Korea was below average (33 percent), the prices were high from the beginning, and the prices jumped a great deal, making them the second highest among OECD members.
The price of mobile phones in Korea was even high compared to other countries that had a similar income level.
Officials point out that measures should be taken to lower the prices of mobile phones. “To lessen the burden that is caused by the high prices of mobile phones, manufacturers should lower their factory prices, create price competition so that device prices go down, and activate the used phone and low-end phone market.”
By Kevin Lee (kevinlee@koreabizwire.com)
