Ultra Model Supports S Pen... Considering Separate Sale
Struggling to Reduce Price Increase Factors
Pre-order Right After Unveiling, Aiming to Cut Costs with Late January Release
[Asia Economy Reporter Han Jinju] Samsung Electronics will support the S Pen on its flagship smartphone Galaxy S21, set to be released next year. To minimize price increases, the company is also considering selling the S Pen separately.
According to industry sources on the 10th, the 'Galaxy S21,' scheduled for release at the end of January next year, will support the S Pen for the first time in the S series. Samsung is reviewing options to include the S Pen on certain models such as the Ultra model or to sell it separately. The S Pen is provided as a standard accessory with the Galaxy Note series and costs 40,000 KRW if purchased separately.
The reason Samsung is deliberating whether to include the S Pen or sell it separately is due to 'price.' The price of the previous Galaxy S20 rose significantly compared to the previous year, affecting sales volume. The Galaxy S20's retail price was 1.25 million KRW, 1.35 million KRW, and 1.6 million KRW, approximately 200,000 KRW higher than the Galaxy S10. The highest-end model was priced at 1.6 million KRW, comparable to the Galaxy Z Flip (retail price 1.65 million KRW). Sales volume remained at about 60-80% of the previous model. Competitor Apple also struggled to keep the price of the 5G iPhone similar to the previous model by excluding the adapter and wired earphones.
Samsung's purpose in supporting the S Pen on the Galaxy S21 series is to unify the Galaxy Note and S series. By equipping the S Pen, which was the biggest differentiator between the two series, on the S series, Samsung can reduce the gap while naturally guiding loyal Note customers to the S series. This is because the company needs to reduce the proportion of the Note series to popularize foldable smartphones and increase sales volume.
Samsung Electronics is expected to hold an unpacked event in mid-January next year, a month earlier than usual, to unveil the Galaxy S21 and start pre-orders on the same day. This strategy aims to shorten the period between unveiling and release, thereby reducing marketing costs. By advancing the schedule by more than a month compared to the previous plan of unveiling in February and releasing in March, the sales of the new product will be reflected in the first quarter's performance, making it easier to improve overall results and plan accordingly.
An industry insider explained, "Samsung's adjustment of the Galaxy S21 release schedule is largely aimed at countering the iPhone 12 and increasing market share and sales," adding, "Adjusting the release schedule after the unpack event will help reduce costs and improve performance."
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