SKT Raises Official Subsidies for Flip4 and Xiaomi
KT Offers 'Free Phones' for iPhone 13 Mini and SE 3rd Gen
Ahead of the launch of Samsung Electronics' quasi-premium device Galaxy S23 FE (Fan Edition), telecom carriers are lowering official subsidies. They are clearing out inventory targeting mid-range and older devices.
SK Telecom expanded the official subsidy for the Galaxy Z Flip4 to up to 720,000 KRW on the 1st. If you use the Basic plan at 49,000 KRW per month, you get 479,000 KRW, and if you use the 5GX Prime Plus plan or higher at 99,000 KRW per month, you receive 720,000 KRW as an official subsidy. Adding the distribution network additional subsidy, which can provide up to 15% extra on the official subsidy, the total support ranges from 558,500 to 828,000 KRW. The Flip4’s retail price is 1,254,000 KRW, but the actual purchase price drops sharply to 426,000 KRW.
Last month, SK Telecom also increased the official subsidy for the Xiaomi Redmi Note 12 Pro Plus. It ranges from 139,000 KRW (Basic) to 160,000 KRW (5GX Prime Plus), and with additional subsidies, support can reach 159,850 to 184,000 KRW. The retail price is 599,500 KRW, and with the maximum official subsidy, the actual purchase price falls to 415,500 KRW. It can be purchased even more cheaply with a 24-month selective contract discount.
KT also early on expanded official subsidies for mid-range and older devices. On the 17th of last month, KT raised the official subsidy for the iPhone 13 Mini. If you use the 5G Save plan at 45,000 KRW per month, the official subsidy is 263,000 KRW. If you use the Choice Premium plan at 130,000 KRW per month, the subsidy is 650,000 KRW. With additional subsidies, the total support ranges from 302,450 KRW (5G Save) to 747,500 KRW (Choice Premium). KT set the retail price of the iPhone 13 Mini 128GB model at 726,000 KRW, so receiving the maximum official subsidy effectively makes it a ‘free phone.’ Also, on the 10th of last month, KT increased subsidies for the iPhone SE 3rd generation and Galaxy Z Fold and Flip4. The iPhone SE 3rd generation 258GB is priced at 634,700 KRW, and all plans provide a subsidy of 634,000 KRW, making it a free phone.
The Fold4 offers 341,000 KRW (5G Save) to 800,000 KRW (Choice Special), and with additional subsidies, support ranges from 392,150 to 920,000 KRW. If you use the Choice Special plan at 110,000 KRW per month, you can purchase it for 878,500 KRW. The retail price is 1,798,500 KRW, so it is effectively a half-price phone. The Flip4 has the same official subsidy as the Fold4. With the maximum subsidy, the actual purchase price is 334,000 KRW.
The smartphone market traditionally experiences a slow season in winter. This is because there are no new flagship smartphones with high consumer preference between the iPhone release in October and the Galaxy S series release in February of the following year. Expanding official subsidies has a sales promotion effect. Also, the government is pushing to reduce household communication costs by lowering device prices, increasing the need to expand official subsidies. Samsung Electronics’ decision to launch the quasi-premium Galaxy S23 FE in the Korean market also has a significant impact. The Galaxy S23 FE is characterized by performance comparable to the S series but at a significantly reduced price. Accordingly, before the Galaxy S23 FE launch, carriers are expanding official subsidies for older flagship and mid-range devices to clear out remaining inventory at the last minute.
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