"New Releases Flood the Second Half of the Year" Telecom Companies Raise 5G Phone Subsidies... Clearing Inventory
[Asia Economy Reporter Seulgina Jo] The mobile telecommunications industry has significantly increased the official subsidies for 5G smartphones released by Samsung Electronics and LG Electronics in the first half of this year. This move is seen as a way to clear inventory ahead of the launch of strategic smartphones in the second half.
According to the telecommunications industry on the 2nd, LG Uplus raised the official subsidy for LG Electronics' first-half strategic smartphone, the LG Velvet, to 268,000 to 500,000 KRW. The previous official subsidy ranged from 74,000 to 212,000 KRW.
Considering that the LG Velvet's retail price is 899,800 KRW, the actual purchase price can drop to the low 300,000 KRW range when combining the official subsidy and additional discounts from distribution channels. This price is more advantageous for consumers than choosing the subscription discount. KT also raised the official subsidy for the LG Velvet from a maximum of 150,000 KRW to 480,000 KRW on the 24th of last month.
SK Telecom increased the official subsidy for Samsung Electronics' budget 5G smartphone, the Galaxy A90 5G, to a maximum of 494,000 KRW starting from the 1st. The Galaxy A90 5G's retail price is 699,600 KRW.
The reason the three major carriers have raised the official subsidies for Samsung Electronics and LG Electronics' 5G smartphones is to clear inventory ahead of the release of new devices such as the Galaxy Note20 series and Apple iPhone 12 series in the second half of the year. It is also expected to have the effect of focusing consumer interest on the smartphones to be released in the second half.
According to market research firm Counterpoint Research, domestic smartphone sales in the first quarter of this year shrank by 10% compared to the same period last year. This is interpreted as reflecting the sharp decline in demand due to the impact of the novel coronavirus (COVID-19) and restrictions on subsidies for 5G devices.
Hot Picks Today
Samsung Electronics Introduces New "Special Performance Bonus" for Semiconductors, Paid Entirely in Company Shares
- "Could I Also Receive 370 Billion Won?"... No Limit on 'Stock Manipulation Whistleblower Rewards' Starting the 26th
- "From a 70 Million Won Loss to a 350 Million Won Profit with Samsung and SK hynix"... 'Stock Jackpot' Grandfather Gains Attention
- Will Soaring Semiconductor Prices Support a Gradual Stabilization of the Household Debt Ratio? Why [BOK Focus]
- "Who Is Visiting Japan These Days?" The Once-Crowded Tourist Spots Empty Out... What's Happening?
The Galaxy S20 series, which had sluggish sales at about 60% of its predecessor's level during its initial release, reportedly showed signs of recovery in sales after the three major carriers raised the official subsidies to around 420,000 to 500,000 KRW in May.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
