[Galaxy Z 5th Generation Storm]
Visiting Mobile Carrier Stores
Pre-order 'Bait Products' Offered
With High-Priced Plan Subscription Conditions Attached
Samsung Electronics' 'foldable phones' have ignited the smartphone market in the second half of the year.
Consumers can pre-order the Galaxy Z Flip5 and Fold5 starting today (the 1st). By pre-ordering, they can get the devices earlier on the 8th, ahead of the official release date on the 11th.
The number of pre-orders significantly affects not only the initial sales performance but also the overall smartphone sales indicators. As a result, not only Samsung as the manufacturer but also the three major mobile carriers and retailers are fiercely competing in marketing by offering various giveaways as 'bait products.'
"Get a Galaxy Watch or Tab for Free"
On the 31st, a KT agency in Seocho-gu, Seoul was busy promoting the pre-sale of the new Galaxy Z phones. Here, customers who pre-purchase the Flip5 or Fold5 256GB models are offered a benefit of upgrading to the 512GB model, doubling the storage capacity. This means that both Flip and Fold 512GB models can be purchased at 121,000 KRW less than the regular price when pre-ordered.
But that was not all. As a pre-order benefit, Samsung's Bluetooth earphones, the 'Galaxy Buds,' and an official charger were provided as standard. Additionally, a giveaway event was held where customers could receive one of three products for free: a Galaxy Watch, a tablet, or a laptop. The giveaway benefits are valued between 300,000 and 500,000 KRW based on the product's retail price. The Galaxy Watch5, released in August last year, is priced in the 300,000 KRW range. The Galaxy Tab A8 model was launched in January last year with a retail price around 350,000 KRW. The budget laptop Galaxy Book GO, released in 2021, was priced at 589,600 KRW at launch.
However, there was a condition attached. A store employee explained, "You must maintain the Choice Basic plan, which costs about 90,000 KRW per month, for at least six months." This means that by subscribing to a high-priced plan, customers receive various giveaways along with the new phone.
At an LG Uplus agency in Gangnam-gu, Seoul, a promotion to sell the new Galaxy Z phones was also in full swing. An employee went further, promoting that "if you activate the Flip5, you will receive both the Galaxy Watch and Tab (for free)." This amounts to receiving goods worth over 600,000 KRW in cash value.
But here too, there was a condition of subscribing to a high-priced plan. The employee said that customers must maintain the '5G Premier Plus plan,' which costs 105,000 KRW per month, for two years. The carrier encouraged pre-orders by explaining that customers do not have to pay anything immediately and can pay for the device on the activation date (the 8th).
At an SK Telecom store in Gwanak-gu, Seoul, they were attracting customers with a "store-exclusive gift." It was not only the carriers who were enthusiastic about the pre-sale of the new Galaxy products. At the Hyundai Department Store Samsung Electronics store, a 50,000 KRW gift certificate event was underway, and Woowa Brothers, operating the Baemin Store, offered Baemin points worth 3% of the purchase amount, up to 100,000 KRW, to pre-order applicants.
Despite the Device Distribution Improvement Act... Communication Fee Burden Expected to Rise
Since the implementation of the 'Device Distribution Improvement Act (DanTongBeop)' in 2014, the reckless subsidy competition among the three major carriers has eased. On this day, no sales practices such as adding subsidies on the condition of number portability were found anywhere.
However, marketing methods that lure consumers with giveaways to induce subscriptions to expensive plans costing 90,000 to 100,000 KRW per month were prevalent. Additionally, due to the Fold5 device price exceeding 2 million KRW, the perceived cost of living, including communication fees, is expected to rise further.
Regarding this, Park Dong-pyo, head of the Device Distribution Investigation Team at the Korea Communications Commission, the regulatory body for DanTongBeop, said, "The purpose of DanTongBeop is to prevent reckless subsidy distribution and create a transparent distribution environment," adding, "There is no legal basis to control the prices of smartphones manufactured by companies like Samsung and Apple."
Park stated, "We will closely monitor sales practices in the mobile market during the pre-order period and strengthen monitoring of both online and offline stores."
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