Ahead of iPhone 14 Launch, Samsung Increases 'Z Flip4' Official Subsidy by 100,000 Won

Unprecedented Price Increase Just 28 Days After Official Product Launch

[Asia Economy Reporter Lim Hye-seon] Ahead of the Apple iPhone 14 launch, Samsung Electronics has increased the official subsidy for its new foldable phone, the Z Flip4. This comes 28 days after its official release on the 26th of last month.

According to the industry on the 26th, SK Telecom and KT raised the official subsidy for the Z Flip4 512GB model by up to 100,000 KRW. SK Telecom increased the subsidy from the previous 280,000?520,000 KRW to 380,000?620,000 KRW, a 100,000 KRW increase, while KT raised it from 255,000?650,000 KRW to 263,000?650,000 KRW. However, LG Uplus maintained its existing official subsidy of 280,000?500,000 KRW.

The official subsidy is a system where mobile carriers discount a certain amount from the device’s retail price. When purchasing a smartphone, consumers choose between the official subsidy and the selective contract discount. The selective contract discount offers a 25% reduction on communication fees.

With the increase in the official subsidy, consumers can now purchase the 1,474,000 KRW Galaxy Z Flip4 512GB model for around 800,000 KRW. The industry views the subsidy increase within less than a month as a measure to gain a price advantage in competition with the iPhone 14, which will be released domestically on the 7th of next month. The iPhone 14 prices start at 1,250,000 KRW for the base model, 1,350,000 KRW for the Plus, 1,550,000 KRW for the Pro, and 1,750,000 KRW for the Pro Max. Typically, flagship smartphones delay increasing official subsidies; for example, the previous Z Flip3 saw its subsidy increased nine months after release.