Galaxy Note Denies 'Discontinuation Rumors', U+ Follows KT in Lowering Prices One After Another

[Asia Economy Reporter Joeslgina] Samsung Electronics has announced that it will not release the flagship smartphone 'Galaxy Note' series, which it usually launches in the second half of the year, this year. Meanwhile, domestic mobile carriers have begun clearing out inventory of older models.

According to industry sources on the 10th, KT lowered the retail price of the Galaxy Note20 base model from the previous 1,199,000 KRW to 1,100,000 KRW on the 7th, followed by LG Uplus adjusting the price to the same level the next day. This is the first time the retail price of the Galaxy Note20 has been reduced. It is considered unusual for the retail price of a flagship smartphone to be lowered in less than a year since its release.

There are also expectations that SK Telecom will soon lower the retail price of the same model. Although the retail price of the higher-end Galaxy Note20 Ultra model, released at the same time, has not changed, it may be adjusted soon.

This is interpreted as a move to clear inventory. Typically, device retail prices are determined through negotiations between manufacturers and mobile carriers.

Along with this, KT increased the official subsidy for the Galaxy Note10 from a maximum of 500,000 KRW to 700,000 KRW. As a result, including additional subsidies from distribution channels (within 15% of the official subsidy), the actual purchase price of the Galaxy Note10 has dropped to the 190,000 KRW range.

The Galaxy Note series is one of Samsung Electronics' representative best-selling products, with sales reaching 10 million units in the first year of release. However, Samsung Electronics has officially stated that a release in the second half of this year will be difficult. Analysts say that the price reduction of older models is an attempt to compensate for the gap in the flagship lineup.

Additionally, Samsung Electronics has decided to advance the release schedule of its strategic foldable smartphones for the second half of the year to fill the gap left by the Note series. It is reported that the three major carriers are currently negotiating to launch the Galaxy Z Fold3 and Galaxy Z Flip3 by the end of August. Through this, Samsung aims to make this year the first year of foldable phone popularization. However, some point out that the foldable phone market size is still only around 5 million units, which is insufficient to fill the gap left by the Note series.

Earlier, Koh Dong-jin, President of the IM (IT & Mobile) Division, officially stated at Samsung Electronics' regular shareholders' meeting in March, "It could be burdensome to release two flagship models with the S Pen in one year, so it may be difficult to launch one in the second half of the year." He also emphasized that "the Note category will continue," drawing a line against rumors of discontinuation.