Ahead of Galaxy S25 Launch, Stock Depletion
Concerns Over Subsidy Competition Following Mobile Subsidy Law Repeal
KT has raised the official subsidy for the latest Galaxy phone, the ‘Galaxy Z Fold Special Edition (SE),’ to 500,000 KRW, the highest in the industry for this device. It appears to be aiming to clear out inventory before the release of the Galaxy S25 series. Attention is focused on whether other carriers will also increase their official subsidies following the abolition of the Act on the Improvement of Distribution Structure of Mobile Communication Terminals (hereinafter referred to as the Terminal Distribution Act).
According to the telecommunications industry on the 7th, KT recently increased the official subsidy for the Galaxy Z Fold SE to a maximum of 500,000 KRW. KT offers an official subsidy of 500,000 KRW and an additional subsidy of 75,000 KRW (15% of the official subsidy) for both device upgrades and number portability on 5G plans costing 90,000 KRW or more per month. For the 69,000 KRW plan, 377,000 KRW (additional subsidy of 56,500 KRW) is provided, and for junior plan users paying 28,000 KRW per month, 156,000 KRW (additional subsidy of 23,400 KRW) is offered.
The Galaxy Z Fold SE, released by Samsung Electronics in October last year, is the thinnest and lightest in the Z Fold series to date, with a thickness of 10.6 mm and a weight of 236 g. Its retail price is 2,789,600 KRW.
The official subsidy of 500,000 KRW is more than three times higher than before. Before the subsidy update on the 4th, KT provided a maximum subsidy of 240,000 KRW depending on the price of the plan.
KT’s significant increase in the official subsidy is analyzed as an attempt to clear existing inventory ahead of the launch of the new Galaxy phone. Samsung Electronics is scheduled to hold an Unpacked event on the 22nd to unveil the Galaxy S25 series. The series is expected to include a ‘Slim’ model, which will be the thinnest version ever.
In particular, with the abolition of the Terminal Distribution Act approaching, KT’s increase in subsidies has been interpreted as a move to kick off a customer acquisition strategy. However, an industry insider said, "The market is considered overheated only when the number of number portability cases exceeds a certain threshold, and it has not yet reached that level."
A KT representative said about the increase in official subsidies, "There is no special reason," but added, "It is decided through consultation with manufacturers depending on device supply and policy direction."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
