[Asia Economy Reporter Seulgina Jo] "If you buy a self-supplied phone at 750,000 won, you just have to accept it." "It's much more economical to get a 25% discount on the carrier selection contract with a self-supplied phone."
Disappointed by the 'stingy' official subsidies, consumers are flocking to 'self-supplied' phones, purchasing smartphones directly without going through carriers. Samsung Electronics' new smartphone 'Galaxy Note20' has been practically sold out on self-supplied channels such as the official online mall, Coupang, and Gmarket as soon as pre-orders began.
According to the industry on the 12th, as the three mobile carriers set official subsidies for the Galaxy Note20 pre-orders at 170,000 to 240,000 won?about half of the previous model's amount (based on the highest 5G rate plan)?demand for self-supplied smartphones is growing. On major sites like Ppomppu and Clien, posts such as "Coupang's self-supplied pre-order sale is cheap. 13% instant discount and 24 months interest-free," "Self-supplied is much more economical," and "Bought it through Wemakeprice self-supplied" are appearing one after another. Many links and recommendations for self-supplied purchases are also confirmed.
Responses to self-supplied models are high even at sales sites. On Samsung.com, the Galaxy Note20 Ultra model was temporarily sold out the day before. Some models are also scarce on Gmarket and Coupang. Even on channels like 11st, where additional stock has been introduced, delivery dates have been significantly delayed. An industry insider said, "Customers who prefer self-supplied phones have definitely increased," adding, "It seems to be influenced by the lower official subsidies compared to the previous model." On the other hand, offline stores of the three carriers, hit by the stingy subsidies, are relatively maintaining a neutral expression.
The official subsidies announced by the three carriers are 170,000 won for SK Telecom, 240,000 won for KT, and 227,000 won for LG Uplus, based on high-priced plans in the 100,000 won range. Compared to the Galaxy S20 launch, when subsidies were up to 450,000 won, this is about half. Additionally, the Galaxy Note's retail price, ranging from 1,199,000 to 1,452,000 won, is lower than the previous model, which also acts as an advantage for self-supplied purchases.
As a result, there is speculation that the launch of the Galaxy Note20, considered a major release in the second half of the year, could lead to an expansion of the self-supplied market, which currently accounts for about 10% of the total market.
Kim Nami (36), who is considering buying a self-supplied phone for the first time, said, "Buying through a carrier means I have to maintain the 5G plan throughout the contract period, which is a burden," adding, "I plan to use all possible card discounts and membership points to buy a self-supplied model cheaply and then apply the 25% discount on the selection contract. I also saw posts saying it’s possible up to 750,000 won (purchase price)."
The government is also supporting the activation of self-supplied phones. Market research firm Strategy Analytics (SA) expects the purchase share of self-supplied phones to reach 11.8% this year.
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