SEOUL - Sales of mobile handsets fell by as much as 50 percent in the first quarter of this year over the same period last year, industry statistics showed April 8.
According to industry sources, the drastic reduction in demand for new mobile handsets is the result of the government’s ban on subsidies and the virtual saturation of the domestic market.

The statistics revealed that a total of 2,692,000 units were sold in the first three months of this year, down nearly 50 percent from the 5,184,000 during the corresponding period of last year.

By company, Samsung Electronics reported sales of 1,229,000 units in the first quarter, down from last year’s 2,316,000, LG Electronics 631,000, Motorola 256,000 and Hynix Semiconductor (formerly Hyundai Electronics Industries) 124,000.

Despite the sharp reduction in the absolute number of mobile handsets sold, the top producers remain unchanged, with Samsung taking 46 percent, LG 23 percent, Motorola 10 percent and Hynix 5 percent, the statistics showed.

"Sales were strong in February due to it being the graduation season but the absence of subsidies continues to be a key factor discouraging greater demands," said one company official.

Since the government has no plans to change its policy on purchasing new handsets, demand will remain very slow in the second quarter, forcing producers to look overseas to market their products, he added.