Galaxy Z Fold7 and Flip7 Released in Over 110 Countries Including Korea
Self-Supplied Purchases Can Reduce Monthly Carrier Fees
Subsidies Vary by Retailer When Purchased Through a Carrier
Carefully Check Subsidy Details Stated in the Contract
Samsung Electronics' new foldable smartphones, the Galaxy Z Fold7 and Z Flip7, were officially released on July 25. As these are the first flagship smartphones to be launched since the repeal of the Act on the Improvement of Distribution Structure of Mobile Communication Devices (commonly referred to as the "Device Distribution Act") on July 22, and as they set a record for the highest pre-order sales among all foldable phones in Korea, consumer interest in purchasing these devices at lower prices is exceptionally high.
According to Samsung Electronics, starting from this day, the Galaxy Z Fold7 and Z Flip7 are available at Samsung Stores nationwide, mobile carriers, Samsung.com, and major e-commerce platforms. The device price for the Z Fold7 with 256 gigabytes (GB) of storage is 2,379,300 KRW, and for the Z Flip7, it is 1,485,000 KRW.
However, the actual price that consumers will pay to purchase these devices is expected to vary widely. This is because, with the repeal of the Device Distribution Act, the upper limit on additional subsidies provided by retail stores has been removed.
Models are experiencing the Galaxy Z Flip7 at the Samsung Store Hongdae Galaxy Studio. Photo by Samsung Electronics
Common Subsidy vs. Rate Discount... Advantage Depends on Scale of Additional Subsidy
First, the method of purchasing a mobile phone is divided into two categories: purchasing a carrier-locked device or purchasing an unlocked device (self-supplied). Carrier-locked means buying the device together with a service contract through a mobile carrier, while self-supplied refers to purchasing just the device and then independently choosing and activating a carrier.
When purchasing a phone through a mobile carrier, consumers can generally choose between two contract options: a common subsidy or a rate discount. One can either receive a subsidy for the device purchase in exchange for using a specific carrier for a set period, or sign up for a contract that offers a discount on monthly service fees.
The most significant change brought by the repeal of the Device Distribution Act is that there is no longer a cap on the additional subsidies that can be provided by agencies or retail stores. With the removal of the subsidy limit, device prices now differ greatly depending on the place of purchase.
Significant Price Differences by Retailer... Flip7 Available for 150,000 KRW at Hotspots
As of this day, if a customer purchases the Galaxy Z Fold7 through a mobile carrier's official online store with number portability and subscribes to a rate plan worth about 100,000 KRW per month for at least six months, the device price is 1,804,300 KRW (based on the common subsidy). However, at certain "hotspot" stores that offer higher subsidies, the same device can be purchased for around 1,300,000 KRW under the same conditions.
The relatively more affordable Galaxy Z Flip7 can be purchased at "hotspot" stores for prices in the mid-100,000 KRW range under the same conditions. If purchased through a carrier's official online store, the device price for the Flip7 is 795,000 KRW (based on the common subsidy). The more a consumer researches which agencies or retail stores offer higher additional subsidies, the greater the chance of securing a lower price.
If a consumer chooses to purchase a phone as an unlocked device (self-supplied), they cannot receive the common subsidy from the carrier or additional subsidies from agencies or retail stores, since they are buying the device independently. Instead, they can benefit from device discounts offered by Samsung.com or e-commerce platforms.
As of July 25, Samsung.com is offering a 2% base discount on both devices, with an additional 3% discount when paying with a Samsung Card, for a total discount of 5%. E-commerce platforms such as Coupang are also selling unlocked devices at similar prices. There is also a special "Mint" color variant available exclusively at Samsung.com and the Samsung Gangnam store.
The main reason consumers choose to purchase unlocked devices is that, while they pay the full price for the device, they can save on monthly carrier fees. Although they cannot receive a device purchase subsidy, they can sign up for a contract that offers a 25% discount on monthly service fees. Another way to reduce costs is to activate the device on an MVNO (Mobile Virtual Network Operator) line, which offers lower rates compared to the three major carriers.
However, consumers must carefully check the details written in the contract when purchasing a phone. The contract will specify the entity and method of subsidy payment, as well as the conditions for receiving subsidies, such as required rate plans or additional services. Under the Telecommunications Business Act, which now applies in place of the repealed Device Distribution Act, contract terms and subsidy details must be included in the contract.
Among these, it is especially important to thoroughly check the details related to subsidies. Consumers should focus on how much subsidy they are to receive from the retailer, and what the final device price (installment principal) will be after the subsidy is applied. Before the repeal of the Device Distribution Act, subsidies exceeding the cap were illegal, so such details were often omitted from contracts and provided informally; now, all subsidy details must be clearly stated in the contract.
Consumers should also be cautious if a retailer offers the device at an unusually low price. This may be conditional upon the issuance of a co-branded credit card, mandatory use of additional services, or subscription to bundled products such as internet service. In such cases, the total monthly cost borne by the consumer could increase significantly.
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