"LTE Plans Also Available" Galaxy Note20 Officially Released Today... Will the Self-Activation Trend Continue?

[Asia Economy Reporter Joesulgina] "It is much more economical to get a 25% discount on carrier selection contracts through unlocked phones." "Now you can use LTE plans even if you buy unlocked phones."

Samsung Electronics' Galaxy Note20, which practically sold out during the pre-order period through the 'unlocked' channel, is expected to continue leading the 'unlocked phone craze' even after its official release on the 21st.

Unlike offline dealerships, which have frozen due to the three major mobile carriers' official subsidies being set at about half the level of the previous model, unlocked phones?purchased and activated directly by consumers without going through carriers?are gaining momentum. The launch of the Galaxy Note20 is expected to serve as a catalyst for expanding the unlocked phone market, which accounts for around 10% of the total market.

According to industry sources on the 21st, the number of Galaxy Note20 units sold through the three major carriers during the pre-order period is estimated to be around 700,000. The share of unlocked phones, which was about 10% of the total mobile market, has surged to around 16%.

This is mainly due to increased non-face-to-face demand amid the COVID-19 pandemic and the carriers' official subsidies being only 170,000 to 240,000 KRW (based on the highest 5G plan), about half of the previous Galaxy Note10. Additionally, the Galaxy Note20's launch price of 1,199,000 to 1,452,000 KRW, lower than its predecessor, also provided an advantage for unlocked phone purchases.

As soon as pre-orders began, posts reporting sales status through unlocked channels such as official online malls, Coupang, and Gmarket appeared one after another on major sites like Ppomppu and Clien, along with recommendation and purchase verification posts. At one point, some models like the Galaxy Note20 Ultra sold out and delivery dates were delayed on major sites.

This atmosphere contrasts with the relatively quiet offline sales and dealerships. An employee at dealership A in Yeongdeungpo-gu, Seoul, said, "The pre-order frenzy is an online story," adding, "Many young people just check out the devices and buy through the cheaper unlocked option."

In recent years, the number of people who carefully compare prices and prefer unlocked phones to receive various discounts such as card benefits has been increasing. This is also a result of the Device Distribution Improvement Act (DanTongBeop), which established the 25% discount on communication fees through selection contracts instead of carrier subsidies. Unlocked smartphones allow free choice of plans without a two-year mandatory contract period, and no penalty fees occur when changing plans.

Moreover, from this day forward, 5G unlocked smartphones can also use LTE plans. Previously, only the SIM card swap method, where the LTE SIM card in use was simply transferred, was possible. An industry insider evaluated this as "a significant change for consumers."

The Ministry of Science and ICT has been promoting such improvements in response to calls from consumer groups and the National Assembly for measures allowing LTE service subscriptions with 5G unlocked devices amid the trend of unlocked phone expansion. SK Telecom and KT have enabled activation from the 21st, and LG Uplus will allow it from the 28th due to system work.

Accordingly, demand for unlocked phones in the domestic mobile phone distribution network is expected to grow further. The government is also supporting the activation of unlocked phones and gradually diversifying devices. The prolonged COVID-19 pandemic and the new normal of the untact (non-face-to-face) era are also cited as factors for the expansion of unlocked phones. Market research firm Strategy Analytics (SA) forecasts that the share of unlocked phone purchases will reach 11.8% this year. This is the first time since 2012 that the share of unlocked phone purchases has exceeded 10%.

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