[Asia Economy Reporter Seulgina Cho] Ahead of the launch of Samsung Electronics' new foldable phone, LG Uplus is accelerating the clearance of 'Galaxy Z Flip 5G' inventory following KT. By increasing the official subsidy for the device up to 650,000 KRW, the actual purchase price of the device has dropped to around 600,000 KRW.
According to industry sources on the 16th, LG Uplus raised the official subsidy for the Galaxy Z Flip 5G from the previous 282,000?500,000 KRW to 334,000?650,000 KRW as of that day.
The Galaxy Z Flip 5G's retail price has already been lowered from 1,650,000 KRW to 1,349,700 KRW. With this adjustment in the official subsidy, consumers will find it more advantageous to choose the official subsidy over the 20% selection discount across all plan tiers.
When using LG Uplus's highest-priced plan at around 130,000 KRW per month, the actual purchase price, including an additional 15% subsidy from the distribution network, drops to as low as 602,200 KRW. For the 5G Standard plan priced at 75,000 KRW per month, the official subsidy of 530,000 KRW and an additional subsidy of 79,500 KRW are provided, resulting in an actual purchase price of 740,200 KRW. Even the 5G Slim+ plan at 47,000 KRW per month (with an official subsidy of 334,000 KRW and an additional subsidy of 50,100 KRW) offers an actual purchase price in the 900,000 KRW range, making it more beneficial to receive the official subsidy.
This move is interpreted as an effort to lower the price of older models and clear inventory ahead of the launch of Samsung Electronics' new foldable phone. Samsung is expected to unveil new foldable phones such as the Galaxy Z Fold3 and Galaxy Z Flip at the Galaxy Unpacked event in August and release them by the end of the same month.
Following KT the previous day, LG Uplus also raised the official subsidy for the Galaxy Z Flip 5G within a day, and SK Telecom's subsidy level is expected to increase soon. Official subsidies are typically shared between mobile carriers and manufacturers, but the exact burden each party bears is not disclosed. Currently, SK Telecom's official subsidy for the Galaxy Z Flip 5G is up to 480,000 KRW.
The foldable phone market, effectively dominated by Samsung Electronics, is rapidly growing as Chinese manufacturers such as Xiaomi and Huawei, emphasizing cost-effectiveness, continuously challenge the market. According to market research firm Counterpoint Research, the global foldable phone market is expected to grow threefold from 5.6 million units this year to 17.2 million units next year. Digitimes Research forecasts that global smartphone shipments could reach 18 to 20 million units this year. These figures suggest that, considering recent manufacturer trends, the foldable phone market's rapid growth phase is anticipated earlier than other market research firms have projected.
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