Price Increase of 100,000 KRW Every 10,000 KRW from 380,000 to 620,000 KRW
Fold and Flip5 Early Release in July... Accelerated Inventory Clearance
SK Telecom has raised the official subsidy for the first time since the launch of the Galaxy Z Fold4. Amid a stagnant smartphone market, this move is interpreted as an effort to clear inventory ahead of the Fold5 release. With SK Telecom firing the first shot, KT and LG Uplus are also expected to follow suit by increasing their official subsidies.
On the 2nd, SK Telecom announced an increase in the official subsidy for the Galaxy Z Fold4. For the cheapest Basic plan at 49,000 KRW per month, the subsidy is 380,000 KRW, and for the most expensive 5GX Platinum plan at 125,000 KRW per month, it is 620,000 KRW. This is an increase of 100,000 KRW compared to before. Additionally, customers can receive up to 15% extra support through additional subsidies from retailers. Assuming the popular 5GX Prime plan (89,000 KRW per month) is used, a purchase discount of 580,000 KRW in official subsidy plus 87,000 KRW in additional retailer subsidy applies. The price of the Galaxy Z Fold4 (256GB), originally priced at 1,998,700 KRW, drops to 1,331,700 KRW. Although still expensive due to the nearly 2 million KRW retail price, the increase in official subsidy marks a significant first since the launch.
Since SK Telecom fired the first shot, KT and LG Uplus are also expected to expand the Fold4 official subsidy soon. For flagship smartphones, SK Telecom typically offers the lowest official subsidy among the three major carriers. However, with this increase, SK Telecom now provides higher subsidies than competitors for all plans except the highest-priced one. KT raised the Fold4 official subsidy on January 20th to between 263,000 KRW and 650,000 KRW, while LG Uplus last increased theirs on October 18th of last year, offering between 316,000 KRW and 600,000 KRW. Earlier, all three carriers simultaneously raised the Galaxy S23 series official subsidy to up to 500,000 KRW on the 14th of last month.
This increase in official subsidy is influenced by efforts to clear old smartphone inventory ahead of the Fold and Flip5 series launch. Samsung Electronics typically holds a foldable smartphone unpacking event in August to unveil new products. However, IT specialized overseas media such as SamMobile predict that Samsung will release the Fold and Flip5 earlier, around the end of July this year. This is to counter Google's foldable smartphone, the Pixel Fold, which is set to be unveiled this month. With the new product launch accelerated, inventory clearance must also speed up.
Additionally, the stagnant smartphone market and declining sales have compounded the situation. According to a Counterpoint Research survey, last year in the domestic smartphone market, iPhone sales decreased by only 0.4%, whereas Galaxy sales dropped by 2% compared to the previous year. The second quarter is an off-season as Samsung Electronics and Apple do not release flagship smartphones, so carriers are promoting sales through official subsidies.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
