"Galaxy S23 Coming"... Increased Official Subsidy to Clear S22 Inventory

KT Raised Official Subsidies 4 Times This Month
'Free Phone' Released by SKT
LG Uplus Triples Galaxy S22 Subsidy Increase

On the 10th, the 'Galaxy S22' was exhibited at the Samsung Electronics Delight Shop in Seocho-gu, Seoul. On this day, Samsung Electronics held an Unpacked event and unveiled the new product, the 'Galaxy S22 series.' It is sold in three models: the standard Galaxy S22, the large-screen mid-range Galaxy S22+, and the premium phablet Galaxy S22 Ultra equipped with an S Pen. / Photo by Moon Honam munonam@

[Asia Economy Reporter Oh Su-yeon] As the Galaxy S23, expected to be released by Samsung Electronics in February next year, has passed the Federal Communications Commission (FCC) certification in the United States, the three major telecom companies have been consecutively increasing official subsidies centered on the Galaxy S22 to clear out inventory. In some mid-to-low-end models, it has become possible to purchase the phone for free with a two-year contract.

According to the telecommunications industry on the 1st, KT raised the official subsidies for the Galaxy S22 and S22+ to 500,000 KRW. When using the monthly 90,000 KRW Tving·Genie Choice Basic plan, if you receive additional subsidies (up to 15% of the official subsidy) on top of the official subsidy, the Galaxy S22, priced at 999,900 KRW, can be purchased for 424,900 KRW, and the Galaxy S22+, priced at 1,199,000 KRW, can be purchased for 624,000 KRW. KT expanded Galaxy official subsidies four times in November alone. On the 18th of last month, it raised the official subsidies for the Galaxy S21 and S21+ to 600,000 KRW and for the S21 Ultra to 700,000 KRW. On the 11th, it increased subsidies for the Galaxy A53, and on the 1st, for the Galaxy Note20.

SK Telecom and LG Uplus also joined the wave of increasing Galaxy official subsidies, resulting in 'free phones.' SK Telecom significantly raised the official subsidies for the Galaxy A52S and Galaxy S20 FE on the 22nd of last month. Telecom companies usually provide maximum official subsidies centered on high-priced plans around 80,000 to 90,000 KRW per month, but this time they applied the same to low-priced slim plans (55,000 KRW per month). The Galaxy S20 FE, priced at 732,600 KRW, with an official subsidy of 644,000 KRW plus an additional 15% subsidy, becomes a zero-cost, free phone. The Galaxy A52S, priced at 599,500 KRW with a subsidy of 508,000 KRW, drops to a device cost of 15,300 KRW after additional subsidies. On the 4th of last month, the Galaxy S22 official subsidy was increased up to 480,000 KRW. When using the 5GX Prime plan (89,000 KRW per month), you can receive an additional subsidy of 72,000 KRW and purchase it for 447,900 KRW.

LG Uplus raised official subsidies early in October. On October 18th, it raised the official subsidies for the Galaxy S22 and Galaxy S22+ to 500,000 KRW. Based on the 5G Premier Essential plan (85,000 KRW per month), this is more than three times the previous 151,000 KRW. On the same day, the official subsidies for the Galaxy Z Flip4 and Z Fold4 were also raised to 570,000 KRW each, and on the 14th, the Galaxy S21 official subsidy was expanded to 500,000 KRW.

According to the telecommunications industry, recent Mobile Number Portability (MNP) figures have dropped to about 5,000 cases per day, excluding Mondays which reflect weekend activations. This contrasts with 7,000 to 8,000 cases around this time last year. Amid a sluggish telecom market, the companies appear to be increasing official subsidies mainly on older Galaxy smartphone models to clear out inventory before the release of the new Galaxy S23. Additionally, with supply issues for popular iPhone 14 models such as the Pro and Pro Max, this is a strategy to expand Galaxy’s market share.

According to overseas IT specialized media reports, the Galaxy S23 and S23+ recently completed the FCC certification process in the United States. SamMobile reported that Samsung Electronics will hold a Galaxy S23 unpacking event in early February next year in San Francisco, USA. Guo Mingchi, a researcher at Taiwan’s FT Securities, forecasted that due to prolonged labor disputes at Foxconn’s factory in Zhengzhou, Henan Province, China?the largest iPhone production base?the iPhone 14 shipment volume in the fourth quarter could decrease by up to 15 million units.