Samsung Electronics Extends Pre-Order Period Until March 3
Initially Planned One-Week Reservation... Carriers Face Dilemma
Extended Pre-Order Period Increases Burden of Securing Additional Gifts
On the 11th (local time), Samsung Electronics held the Galaxy Unpacked 2020 event at the Palace of Fine Arts in San Francisco, USA, unveiling its strategic smartphones, the Galaxy S20 series, and the second foldable phone, the Galaxy Z Flip. On the 12th, citizens are experiencing the related products at the KT Plaza Gwanghwamun branch in Seoul. Photo by Mun Ho-nam munonam@
[Asia Economy Reporter Han Jinju] Samsung Electronics has decided to extend the Galaxy S20 pre-order (reservation sale) period until March 3. Consumers who have already made reservations can activate their devices from the originally scheduled date of the 27th.
According to industry sources on the 25th, Samsung Electronics decided to extend the Galaxy S20 pre-order period, which was originally until the 26th, to March 3. The three major mobile carriers are also reviewing Samsung Electronics' request but have not yet made a decision.
Separate from the extension of the pre-order period, pre-activation will proceed from the originally planned date of the 27th until March 5. Samsung Electronics explained, "Considering consumer safety due to the novel coronavirus infection (COVID-19), we are extending the reservation sale period until March 3 and will proceed with activation as originally planned from the 27th."
Samsung Electronics' extension of the Galaxy S20 pre-order period is known to be related to supply issues of the popular Galaxy S20 Ultra model. Due to the impact of COVID-19, there have been disruptions in procuring parts for the Galaxy S20 Ultra, causing supply difficulties, and the industry views the extension as a way to buy time.
Mobile carriers also have their own reasons for hesitating to agree to the extension of the pre-order period. They had prepared promotions and events aligned with the pre-order period, and if the period is extended, the burden of securing additional gifts increases. With the COVID-19 impact expected to persist for some time, there is also a view that extending the schedule may not be very meaningful.
An industry official said, "Marketing has already been done on the basis that gifts are given only to pre-order customers, but there is disagreement between mobile carriers and Samsung Electronics about having to provide gifts to people who did not pre-order."
Another industry official explained, "Typically, about half of the consumers who pre-order actually proceed to activation, and many make overlapping reservations with multiple carriers, so if the period is extended, the risks that carriers have to bear also increase."
Moreover, although the carriers agreed to reduce the pre-order period from 15 days to 7 days ahead of the Galaxy S20 launch, Samsung Electronics' proposal to extend the period has effectively nullified that agreement. On the 10th, the three mobile carriers announced improvements to the new device reservation subscription process on the condition of maintaining official subsidies while shortening the pre-order period.
Regarding the extension of the Galaxy S20 pre-order period, the Korea Communications Commission stated that it is not a matter for their involvement. A KCC official said, "Once pre-activation begins, general sales effectively take place, so as long as market overheating does not occur, it is fine," adding, "It is a matter for manufacturers and carriers to decide through good consultation to avoid inconvenience to consumers."
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