"430,000 Units in One Week" Green Light for Galaxy Note20... Samsung Resumes Special Trade-In Sale

On the 23rd, when social distancing level 2 was expanded nationwide, citizens gathered at the Galaxy Note20 experience center set up in a large shopping mall in Yeongdeungpo, Seoul. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Joselgina] Samsung Electronics' new smartphone Galaxy Note20, released amid the resurgence of the novel coronavirus infection (COVID-19), has turned on the initial success "green light" by activating more than 400,000 units in one week. This is considered a commendable result despite unfavorable conditions for sales, such as the three major mobile carriers' official subsidies being only half of the previous model's.

Samsung Electronics, which is putting its life on the line with the Galaxy Note20 to make up for the sluggish performance of the Galaxy S20 in the first half of the year, plans to continue the momentum of success through measures such as resuming special trade-in sales.

According to Samsung Electronics on the 24th, the number of Galaxy Note20 activations in Korea from the start of pre-activation on the 14th to the 21st was identified as 432,000 units. This figure is about 10% less than the first-week activation volume of the Galaxy Note10 last year (approximately 500,000 units).

However, considering the prolonged COVID-19-induced economic downturn and the sluggish offline pre-order sales situation, the activation of 400,000 units is regarded as a good performance. An industry insider explained, "Last year, when the Galaxy Note10 was released, the market was somewhat overheated due to official subsidies and illegal incentives pouring in after the commercialization of 5G," adding, "It is meaningful in itself that the first-week sales performance was similar, supported by online and unlocked phone sales." The first-day activation volume was 258,000 units, surpassing the Galaxy S8, which ranked first among the Galaxy series.

Among the models, the Galaxy Note20 Ultra was highly popular. Despite criticisms centered on online communities about the so-called 'cat camera bump' (a design where the camera protrudes) being prominent on the Ultra model, it accounted for about 70% of total sales. The Mystic Bronze color was the most preferred.

Another trend confirmed in the initial sales was unlocked smartphones. Unlike the frozen offline dealerships due to the three major carriers' official subsidies being set at half the level of the previous model, unlocked phones, which consumers purchase directly without going through carriers, gained momentum. The share of unlocked phones, which was about 10% of the total mobile market, soared to around 16%. It appears that consumers judged that with major benefits such as credit card and shopping mall point discounts combined with a 25% selection discount on subscription fees, the price was much more advantageous than the official subsidies from the three carriers. Additionally, the government and the three carriers revised terms to allow LTE plans to be subscribed to with 5G unlocked smartphones.

[Image source=Yonhap News]

Currently, Samsung Electronics is putting its life on the line with the Galaxy Note20 to make up for the sluggish performance of the Galaxy S20 in the first half of the year. Following the Galaxy S20, which was labeled as the "unfortunate phone" after being hit directly by COVID-19, and facing the variable of COVID-19 resurgence at the early stage of the Galaxy Note20 release, Samsung Electronics has expanded purchase benefits more than usual, such as giving Galaxy Buds Plus as gifts to boost initial sales momentum. The gift-giving event will be held until the 31st for early buyers.

From next month, Samsung plans to resume its own special trade-in sales. This service compensates customers who purchase the Galaxy Note20 series by returning their previously used devices with up to 100,000 KRW more than the used market price. It has been one and a half years since Samsung Electronics last resumed its own special trade-in sales. Samsung Electronics explained, "We are reviewing various marketing plans, including special trade-in sales programs."

This is also because it is currently difficult to expect an increase in official subsidies from the three carriers or subsidies from distribution channels. Unlike the pre-order period, when the share of unlocked phones is large, sales effects tend to continue only when carrier subsidies are released after the official launch. Despite the confirmed sales boom during the pre-order period, Samsung Electronics might miss the golden sales period immediately after the launch.

The three major carriers, which were fined heavily by the Korea Communications Commission due to the 5G illegal subsidy issue, are holding back on "cutthroat marketing" as major issues such as 5G facility investment and frequency reassignment are pending in the second half of the year. They also have no choice but to be more passive in distributing subsidies or marketing at offline sales and dealerships until the compliance inspection period for the KCC's enforcement order ends.

An industry insider said, "With Apple's first 5G iPhone launch scheduled soon, Samsung Electronics is expected to further expand its own marketing."

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