Inconsistent Sales Incentives and Galaxy Note 20 Activation Delays... Only Consumers Are Frustrated

Reduced Distribution Network Sales Incentives Cause Activation Delays and Cancellations
Up to 170,000 KRW Sales Incentives Reclaimed on the 14th
Dealers Delay Activations Despite Accepting Subscribers to Avoid Losses

Galaxy Note20 (Photo by Yonhap News)

[Asia Economy Reporter Han Jinju] Galaxy Note20 pre-order customers are experiencing inconvenience as their devices are not being activated even after purchase. Mobile carriers delayed activation to avoid losses after reclaiming sales incentives from phone dealerships and retailers under the pretext of market stabilization.

On the 20th, a post was uploaded on the Blue House petition board reporting frequent activation delays by mobile carriers. A store representative stated, "The three major carriers are postponing number portability (MNP) activations, watching each other and selectively activating only when necessary. We have sold phones to customers but have not been able to activate them for five days. Offline stores are activating devices, but new distribution channels and strategic channels are blocking MNP activations," he pointed out.

Around the 14th, when activation for pre-order customers began, cases of failed activations or outright order cancellations surged. A consumer who purchased the Galaxy Note20 said, "I bought it online during the pre-order period, but I have neither received the product nor was my activation completed; I was contacted that the activation was canceled, which is very frustrating." Consumers who purchased other products like iPhones around the Galaxy Note20 pre-activation period are also suffering from activation delays.

On the late afternoon of the 19th, carriers sent notices to distribution networks stating that sales incentives for all Galaxy Note20 models would be reduced by 80,000 KRW under the guise of market stabilization. As the activation delay controversy grew, some channels received instructions to "continue with activations." Sales incentives vary by distribution channel and frequently change. Since carriers set the amounts and activation guidelines, consumers sometimes face losses but proceed with activation when they complain.

On the 14th, when pre-activation started, carriers reportedly communicated a policy to reclaim sales incentives up to 170,000 KRW under the pretext of market stabilization. This created a structure where dealerships and retailers would incur losses if they proceeded with activation, encouraging them to delay it. Although activation delays frequently occur at stores illegally providing subsidies, recently, even customers who properly pre-ordered have had to endure activation delays.

An industry insider said, "Not activating devices for customers who have purchased them is illegal, and such behavior should not be tolerated. If sanctions are not properly enforced, the practice of lifting and then restricting activations may continue," he warned.

Mobile carriers claim the issue arose from aggressively attracting subscribers with high subsidies in distribution networks. They say that when sales incentives are set lower than expected, they use excuses like activation delays or insufficient stock.

A carrier representative explained, "Rebates are determined on the release date, but dealerships or retailers that gathered subscribers through pre-orders before the release promised activation based on unspecified rebate amounts. When the amounts decrease, they sometimes postpone activation. There was also an activation delay incident during the Galaxy Note10 launch, and dealerships or retailers sometimes cite regulatory crackdowns by the Korea Communications Commission as a reason," he explained.

This content was produced with the assistance of AI translation services.