[Weekly Signal] “Break It to Fix It”: Smartphone Price Increases Stretch Replacement Cycles
IT DAILY ·
✦ AI Summary
As handset prices rise, consumers are replacing their phones less often, and retailers are seeing weaker purchase demand.
The Broadcasting and Media Communications Commission will implement in October a system that imposes fines of up to 6% of related sales revenue on illegal spam senders and businesses that neglect their anti-spam obligations.
GSMA will hold "M360 ASEAN 2026" on the 9th and 10th to discuss AI transformation in the ASEAN region and securing digital trust.
This week in the telecommunications industry, the main issues were handset price increases and the market changes they are triggering, along with regulatory implementation and international events. As mobile phone prices rise, consumers are holding on to their phones longer. Apple unveiled its new iPhone lineup, while premium handset prices continued to climb.
Amid this trend, retailers are feeling a drop in handset purchase demand. As handset prices keep rising, consumers are postponing replacement timing, and sales floors are seeing softer demand as well.
Regulatory changes were also announced. A system that imposes fines of up to 6% of related sales revenue on illegal spam senders will take effect in October. A separate system that imposes fines of up to 6% of related sales revenue on businesses that neglect their anti-spam obligations will also take effect in October.
International events were also cited as major news around the same time. The GSMA held an event centered on the ASEAN region. GSMA stressed cooperation across the telecommunications industry to build a trusted digital ecosystem.
On the 9th (local time), Apple held its product launch event, "Surprise and Shine," and unveiled the iPhone 18 Pro, iPhone 18 Pro Max, and its first foldable phone, the iPhone Duo. The iPhone 18 Pro starts at KRW 1.99 million for the 256GB model, while the iPhone 18 Pro Max starts at KRW 2.19 million. The iPhone Duo starts at KRW 3.29 million for the 256GB model, and the top-end 2TB model costs KRW 5.09 million.
Compared with the previous models, Apple raised the prices of the iPhone 18 Pro and iPhone 18 Pro Max by KRW 200,000 each. The iPhone 18 Pro is KRW 200,000 more expensive than the previous iPhone 17 Pro, which cost KRW 1.79 million, and the iPhone 18 Pro Max is KRW 200,000 higher than the previous iPhone 17 Pro Max, which cost KRW 1.99 million.
Samsung Electronics also raised the prices of its flagship phones this year. The Galaxy S26 256GB model is priced at KRW 1.254 million, up KRW 99,000 from the previous Galaxy S25, which cost KRW 1.155 million. The Galaxy Z Fold8 is priced at KRW 2.2781 million for the 256GB model and KRW 2.5311 million for the 512GB model, with both models exceeding KRW 2 million.
As handset prices rise, consumers are replacing their phones less often. According to Counterpoint Research, the global average smartphone replacement cycle peaked at 43.4 months in 2023 and remained at 43 months in 2024. The domestic market showed a similar trend.
According to a Consumer Insight survey, the average replacement cycle for mobile phones in the country lengthened from 23.9 months in the second half of 2012 to 27.9 months in the second half of 2020 and 33 months in 2024. Over 10 to 12 years, the domestic replacement cycle increased by about 9 months. During the same period, the average amount spent on a mobile phone in the country rose from the KRW 300,000 range to the KRW 670,000 range, more than doubling.
A mobile phone retailer in Seoul said manufacturers are under greater pressure due to rising semiconductor and memory prices, and consumers are also facing heavier burdens because of the overall increase in handset prices. The retailer added that more customers are now coming in to replace phones only after they break or become unusable.
The Broadcasting and Media Communications Commission, or BMC Commission, held its 34th plenary meeting of 2026 on the 9th to establish a sanctions framework for illegal spam and approved the draft enforcement decree of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc., as well as related notices, including provisions on fines for illegal spam. The draft will take effect in October.
The draft includes fines for illegal spam senders and fines for businesses that neglect their obligations to prevent illegal spam. The ceiling for the fines is up to 6% of related sales revenue.
The enforcement decree specifies the standards for the measures required when an information and communications service provider's service is used to send illegal spam. It also sets the fine-rate standards by severity of the violation, with penalties ranging from 1% to 6% of related sales revenue and from KRW 100 million to 2 billion.
The related notice sets out the procedures for calculating fines. It also specifies aggravating and mitigating factors, whether the violation was intentional or negligent, the method and means of the violation, and the scale and impact of damages.
The notice also spells out the detailed criteria for imposing fines, including standards for judging the severity of violations. The BMC Commission said it established the sanctions framework by setting the operator's duty to take measures and the fine standards in the enforcement decree, while supplementing the detailed criteria in the notice, including calculation procedures and factors for assessing severity.
The partial revision decree of the enforcement decree and the notice enactment and amendment draft were approved. The matter is expected to go through Cabinet meeting and vice ministerial meeting approval procedures going forward.
After those Cabinet and vice ministerial approval procedures, it is scheduled to be promulgated and take effect on October 1.
GSMA will also hold "M360 ASEAN 2026" on the 9th and 10th. The main agenda items for the event are AI transformation in the ASEAN region and securing digital trust.
GSMA is an association that represents the interests of mobile operators and members of the mobile ecosystem around the world, and it plays a role in leading international standards. The event is hosted by GSMA and Malaysia's Ministry of Communications.
Telecom carriers, tech companies, and policy authorities from East Asia and the ASEAN region will attend the event. SK Telecom, Japan's NTT docomo, and Huawei are among the participants.
Participants will discuss AI transformation, AI sovereignty, stronger security, and reliable communication networks as key issues. GSMA said that securing digital trust is necessary in the AI era.
At the summit held alongside the "M360 ASEAN Digital Trust Summit," the "2026 GSMA ASEAN Consumer Scam Report" and "Digital Nations 2026: Building a Trusted Digital Ecosystem in ASEAN" were also shared. According to GSMA figures, 96% of consumers in 6 ASEAN countries are concerned about scams. In addition, 45% of reported scam cases remained unresolved.
The reports emphasized the need to respond to phishing with AI. They also identified countering digital threats such as deepfakes as a key task. As responses, they pointed to identity verification, telecom authentication, and network resilience.
The reports called for close cooperation among governments, telecom operators, and financial institutions. They added that the goal should be to secure trust across the digital ecosystem as a whole.
Source: IT DAILY · Seong Won-young
Original: https://www.itdaily.kr/news/articleView.html?idxno=241538
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Source: IT DAILY
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