Record-Breaking Activations on First Day of Pre-Orders... Loyal Fans and Gift Effects
Early Success Despite COVID-19 and Device Defect Controversies
[Asia Economy Reporter Han Jinju] As the Galaxy Note20 has succeeded in early sales during pre-orders, attention is focused on whether the momentum can continue after the official launch. Wireless earphone giveaways and improvements in the unlocked phone system are attracting consumers, but variables such as the resurgence of COVID-19 remain.
According to the telecommunications industry on the 21st, the number of Galaxy Note20 units sold through carriers during the pre-order period is estimated to be around 700,000. On the first day of pre-order activation, about 258,000 units were activated, breaking the record for the highest number of activations ever. This is welcome news for Samsung Electronics, which needs to make up for the sluggish performance of its first-half strategic smartphone, the Galaxy S20.
To maintain the initial sales momentum of the Galaxy Note20, Samsung Electronics offered Galaxy Buds Plus and other gifts to early buyers. The pre-order results were a combined effect of loyal Note fans' support and the wireless earphone giveaways. Compared to the Galaxy S series, the Note series has more loyal fans, and offering the wireless earphones 'Galaxy Buds Live' as a gift sparked interest. Additionally, rumors that this might be the last Note series also contributed to boosting Note20 sales.
Despite the relatively poor official subsidies compared to last year's 'Galaxy Note10,' which saw fierce competition for 5G subscriber acquisition, the atmosphere is not bad. The Galaxy Note20 official subsidies range from 80,000 to 240,000 KRW, similar to the Galaxy S20. Nevertheless, this has not been a major obstacle to success, thanks to the increasing number of consumers purchasing unlocked models through online channels. The share of unlocked phones, which had been only about 10%, has risen to the mid-teens since the Galaxy Note20 launch, supporting this trend.
The Ministry of Science and ICT's revision of related terms from the 20th, allowing 5G unlocked smartphones to subscribe to LTE plans, may also positively impact Galaxy Note20 sales. There is now a greater incentive to choose unlocked models instead of carrier models sold linked to 5G plans. SK Telecom and KT have enabled activations from the 21st, and LG Uplus from the 28th. Unlocked phones are purchased as devices without service from online malls, electronics stores, or large electronics retailers and then activated with the desired carrier.
However, uncontrollable variables such as the resurgence of COVID-19 and controversies over dust and moisture remain challenges to overcome. The highest number of confirmed cases since early March is occurring daily in Korea, and raising social distancing to level 3 is being discussed. The smartphone market, which had barely recovered since June, and the reviving consumer sentiment are likely to shrink again.
On Galaxy smartphone cafes and online communities, posts about exchanging or refunding Galaxy Note20 devices due to dust, gaps, or moisture in the camera are continuously being posted. Consumers are complaining about issues such as moisture accumulating on the rear camera when placing the phone in front of a car air conditioner vent, misalignment between the lens and camera hole causing gaps, and dust entering the module. Regarding moisture, Samsung Electronics stated, "This is a natural phenomenon occurring in waterproof phones, but we are investigating due to some consumer complaints."
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