LG Uplus Announces Official Subsidy Amounts
Samsung Electronics unveiled the foldable smartphones 'Galaxy Z Fold3' and 'Galaxy Z Flip3' at 'Galaxy Unpacked 2021'. On the 12th, customers visiting the Samsung Delight Shop in Seocho-gu, Seoul, are seen exploring the new products. The newly released products will be available for pre-order in Korea from the 17th to the 23rd and are scheduled for sequential global release on the 27th. Photo by Kim Hyun-min kimhyun81@
[Asia Economy Reporter Cha Min-young] Samsung Electronics' new foldable phone series 'Galaxy Z Flip3' has been assigned a public subsidy of 500,000 KRW, bringing the actual purchase price below 700,000 KRW. In the case of the 'Galaxy Z Fold3,' the subsidy is around 150,000 KRW, with initial demand during the pre-order period concentrated on the Z Flip3.
According to the telecommunications industry on the 17th, LG Uplus set the public subsidy for the Z Flip3 at 500,000 KRW based on the monthly 85,000 KRW '5G Premier Essential' plan. Including an additional subsidy of 75,000 KRW, the actual purchase price drops from the retail price of 1,254,000 KRW to a minimum of 679,000 KRW. However, the additional subsidy is a system that can provide up to 15% more than the public subsidy depending on the distribution channel's capability, so it may vary by channel.
LG Uplus set the public subsidy for the Z Fold3 256GB and 512GB models at 151,000 KRW based on the same 5G plan. Even with an additional subsidy of 22,650 KRW, the actual purchase price is around 1,920,000 KRW and 1,830,000 KRW, respectively. This means the perceived benefit is less compared to the Z Flip3.
The public subsidy is a combined form of support from smartphone manufacturers and carriers, and individual subsidies are not disclosed. The subsidy is a type of marketing cost and is set differently according to each company's sales strategy.
In the market, there were many expectations that Samsung Electronics would launch a marketing offensive focused on popularizing foldable phones in the second half of the year, especially given the absence of the popular Galaxy Note series.
Telecom companies are also actively promoting with pre-order benefits. The spread of premium 5G phones can increase the number of 5G service subscribers. The pre-order period is from August 17 to 23, lasting seven days. All three companies accept reservations through nationwide stores and official online malls.
Meanwhile, the public subsidies for the same devices from SK Telecom and KT have not been disclosed.
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