Ahead of Unpacked, Galaxy S21 Subsidies Drastically Reduced... SKT at One-Third Level

Three models of the Samsung Galaxy S21 series. [Image source=Yonhap News]

[Asia Economy Reporter Joselgina] Ahead of the launch of Samsung Electronics' new foldable smartphone, the official subsidies for the 'Galaxy S21 series' released earlier this year have been cut to one-third. This move is interpreted as an effort to concentrate subsidy funds on the soon-to-be-released Galaxy Z Flip3 and Galaxy Z Fold3.

According to industry sources on the 2nd, SK Telecom reduced the official subsidy for the Galaxy S21 from a maximum of 500,000 KRW to 170,000 KRW as of the previous day. This is about one-third of the previous amount. The subsidies for the Galaxy S21+, and Galaxy S21 Ultra were also lowered equally. This is the first time the subsidies for the Galaxy S21 series, released in January, have been adjusted.

On the same day, KT and LG Uplus also lowered the official subsidies for the Galaxy S21 series. KT reduced the maximum subsidy from 500,000 KRW to 240,000 KRW, and LG Uplus lowered it from 500,000 KRW to 230,000 KRW.

As a result, the actual purchase price has increased. The retail price of the basic Galaxy S21 model is 999,900 KRW, and if using an SK Telecom plan costing over 80,000 KRW per month, the price is in the 800,000 KRW range. For customers, receiving a 25% selection discount is much more advantageous than benefiting from the official subsidy.

This subsidy reduction is analyzed as an effort to focus resources on the new foldable phones instead of existing smartphones ahead of the Galaxy Unpacked event on the 11th. The subsidies previously allocated to the Galaxy S21 series are expected to be redirected to the new foldable phones. Official subsidies are typically shared between mobile carriers and manufacturers, but the exact burden ratio is not disclosed.

Samsung Electronics plans to unveil the new foldable phones, Galaxy Z Flip3 and Z Fold3, at this Unpacked event and release them by the end of this month. Having declared 2021 as the 'year of foldable popularization,' Samsung has decided to lower the retail prices of the Galaxy Z Flip3 and Z Fold3 compared to their predecessors. This is interpreted as an intention to expand the foldable phone market by significantly reducing the high price barrier that has been a major obstacle to foldable phone adoption. The industry also expects substantial official subsidies to be provided.

This content was produced with the assistance of AI translation services.