'COVID-19 Direct Hit' Galaxy S20... A Gloomy Launch Day Without Parties (Summary)

[Asia Economy reporters Seulgina Jo and Hanjinju] "Just a week ago, I never thought the atmosphere would become this depressed."

The 'Galaxy S20 series,' considered a major release in the first half of this year, faced a gloomy launch day on the 27th due to the spread of the novel coronavirus infection (COVID-19). Although confident in its success, it was hampered by the adverse effects caused by COVID-19. Over the past week, the pre-order volume was estimated to be similar to that of the Galaxy S10 series, but with consumer sentiment rapidly shrinking recently, there are concerns that the actual launch performance could worsen.

◆"Because of COVID-19" Lament= The three mobile carriers, SK Telecom, KT, and LG Uplus, began activating the Galaxy S20 series for pre-order customers on this day without any separate events. From the start of pre-orders on the 20th until six days later, the reservation volume for the Galaxy S20 series was reported to be around 360,000 units. This is similar in scale to the initial pre-sale of the Galaxy S10 series last year. However, compared to the early sales of the Galaxy Note10, the sales volume has been cut in half.

In the market, the reservation atmosphere is unlike previous years due to COVID-19, and the mood further dampened after SK Telecom confirmed its first positive case the day before. It is also unusual that the three carriers did not hold any special events on the flagship smartphone launch day. During the Galaxy Note10 launch in the second half of last year, figure skating queen Yuna Kim and singer Kang Daniel appeared at customer invitation events for each company, heightening the festive atmosphere. However, this year, the launch day event itself was canceled. Only KT held a YouTube live broadcast event the day before.

The subdued consumer sentiment is also evident at frontline dealerships. A representative from an LG Uplus dealership near Hongik University said, "Due to COVID-19, the reservation atmosphere for the Galaxy S20 series has sunk to the worst level ever," expressing difficulty by adding, "The number of customers visiting the store is only a few per day." A KT dealership representative near Ewha Womans University also gave a bitter smile when asked about the pre-order reception atmosphere, saying, "There are hardly any inquiries at the store."

The three carriers setting lower official subsidies than previous models also contributed to the chilling atmosphere. The official subsidy for the S20 series by plan ranges from 79,000 to 240,000 KRW. Considering that the initial subsidies for the Galaxy Note10 were around 420,000 to 430,000 KRW and for the Galaxy S10 5G were about 475,000 to 546,000 KRW based on the highest-priced plans, the gap is significant.

[Image source=Yonhap News]

◆Real-time Subscription and Activation Starting Today= Samsung Electronics has effectively launched the Galaxy S20 series early to boost its success. The pre-order period, originally ending the day before, has been extended until the 3rd of next month, enabling real-time subscription and activation from today. The industry views this measure as an effort to increase pre-order volume and revive the successful atmosphere.

The three carriers are also continuing online and offline marketing. SK Telecom launched 'T All Care Plus' to coincide with the launch day. KT, featuring BLACKPINK member Jennie as the Aura Red advertising model, has started SNS promotions such as 'Follow Jennie Red.' KT also offers Galaxy Buds, wireless gamepads, and other prizes through a lottery for all new KT 5G streaming game subscribers.

Some dealerships are actively attracting customers by offering Galaxy Tabs to Galaxy S20 pre-order customers or adding 50% more coverage for display damage guarantees. Illegal subsidies are also gradually appearing in some online malls. Typical examples include sales at prices 20-30% cheaper than the retail price or support in the form of discount coupons.

An industry insider said, "Usually, 5 out of 10 pre-orders are activated, but with more people reluctant to go out due to COVID-19, the activation rate may be even lower. Consumer sentiment is already weakened by COVID-19, and competition over official subsidies has disappeared. Although the pre-order period was extended as a last resort, both carriers and manufacturers are very worried."