"IPhone 12 for 190,000 Won"... Second Rush Following 12 Mini

Signs of iPhone 12 Shortage Centered on Seongji and Some Retailers
LGU+ Raises iPhone 12 Official Subsidy to 430,000 KRW
"Galaxy Note20 Ultra 130,000 KRW"... Note Price Surpasses

On the 30th, the day Apple officially launched its first 5G smartphone, the iPhone 12 series, customers were seen examining the products at the Apple Store on Garosugil, Gangnam-gu, Seoul. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Han Jinju] Signs of a 'second wave' of the iPhone 12 frenzy are emerging. Illegal subsidies are being distributed following the increase in official subsidies to attract 5G subscribers.

According to industry sources on the 22nd, posts are being uploaded on online communities stating that the iPhone 12 (64GB model) can be purchased for 190,000 KRW when switching phone numbers. Although the retail price is 1,078,000 KRW, illegal subsidies are being provided by attaching conditions of subscribing to high-priced plans to the official subsidies.

Earlier, LG Uplus raised the official subsidy for the iPhone 12 to a maximum of 430,000 KRW as of the 19th. The official subsidy, which was 240,000 KRW at the time of release at the end of October, was increased by 160,000 KRW. If an 80,000 KRW plan is chosen, 400,000 KRW is applied, and from 100,000 KRW plans, 430,000 KRW is applied.

It appears that the official subsidies were increased to attract 5G subscribers ahead of Christmas and the year-end. Generally, iPhones have had low official subsidies, resulting in a high price burden, but this year, unusually, the official subsidies have significantly increased within 1 to 2 months of release. Mobile carriers are competing fiercely to attract 5G subscribers following the launch of the iPhone 12. As of the end of October, the number of 5G subscribers was 9.98 million.

iPhone 12 Pro Max and iPhone 12 Mini

At stores known as 'holy grounds,' the iPhone 12 mini is being sold for as low as 90,000 KRW. Within a week of its release, the official subsidy for the iPhone 12 mini doubled to a maximum of 420,000 KRW. Starting from this point, collective markets and some retailers began distributing large amounts of illegal subsidies for the iPhone 12 mini. Considering that its retail price is the lowest at around 950,000 KRW and that the preference for iPhones is high among the 10-20 age group, it seems to be a strategic move to attract 5G subscribers.

To curb the rapid rise of the iPhone 12, carriers and manufacturers are focusing on price marketing such as increasing official subsidies. LG Uplus raised the official subsidy for the Galaxy Note20 Ultra to 650,000 KRW on the 16th. This has led to a situation where the Galaxy Note20 Ultra, priced at around 1.45 million KRW, is cheaper than the Galaxy Note20, which costs 1.19 million KRW. Some retailers have posted that if you switch to LG Uplus, you can buy the Galaxy Note20 Ultra for 130,000 KRW and the Galaxy Note20 for 190,000 KRW. Stock clearance efforts are also ongoing ahead of the Galaxy S21 launch. KT raised the official subsidy for the Galaxy S20 Ultra to a maximum of 700,000 KRW on the 22nd.

The LG Velvet has become a free phone just seven months after its release. LG Uplus adjusted the official subsidy for the LG Velvet to a maximum of 783,000 KRW on the 18th. Although the retail price is 899,800 KRW, the highest official subsidy applies from plans priced at 80,000 KRW, and with an additional subsidy of 117,450 KRW, the actual purchase price is zero KRW.