"LG Q51 Chabi 200,000 Won"... Will Subsidies Explode for Mid-Range Phones?

Galaxy A31, LG Q51 and Other Mid-Range Phones Around 300,000 Won Also Receive Subsidies
Fierce Competition to Attract LTE Subscribers... Active 'Transportation Cost' Marketing Beyond Free Phones

[Asia Economy Reporter Han Jinju] "I opened an account on the day of the transportation fare chaos. The conditions from the three mobile carriers are good. I switched to the Galaxy S10 and received 50,000 won for transportation fare."

"I received 20 transportation fare tickets on the day I bought the LG Q51."

As the status of mid-range smartphones changes, mobile carriers are offering subsidies on mid-range smartphones to attract LTE subscribers. The 'transportation fare' marketing, which gives back up to 200,000 won when purchasing a smartphone priced in the 300,000 won range, is active.

According to the industry on the 5th, posts have been continuously uploaded on online communities stating that buyers of the LG Q51 can receive 150,000 to 200,000 won back from dealerships. Although not as much as the LG Q51, the Galaxy A31 offers 30,000 to 50,000 won back. Even when using a 30,000 won tier plan with a mid-range phone, subsidies are being offered for all new subscriptions and number portability.

The reason carriers are competing with subsidies is that as consumers seeking cost-effectiveness increase, the status of mid-range phones, once considered silver or youth phones, has changed. There is high demand for affordable LTE phones instead of expensive 5G smartphones with fewer perceived benefits, so carriers are focusing on securing mid-range smartphone subscribers. According to Counterpoint Research, the domestic market share of mid-range smartphones priced under $250 in the first quarter of this year increased by 10% from last year to 37%.

Samsung Electronics released three Galaxy A series models domestically in the first half of this year, and LG Electronics is also expanding its mid-range smartphone lineup with models like the Q51 and Q61. Budget smartphones priced between 200,000 and 300,000 won, such as the Galaxy A31 and Xiaomi's Redmi Note 9S, sold out as soon as pre-orders began.

An industry insider explained, "Recently, products priced in the 300,000 won range have become so popular that there are talks about shortages," adding, "Global manufacturers have been releasing various mid-range smartphones, but domestic manufacturers have somewhat neglected this segment due to trends favoring flagships. However, the atmosphere is changing."