"Market Response is Positive" Galaxy S21 Confidently Presented by No Tae-moon... Marketing Competition Heats Up

Samsung Electronics held the 'Galaxy Unpacked 2021' event early on the 15th and unveiled the smartphone 'Galaxy S21' series. Citizens visiting the Samsung Electronics Delight Shop in Gangnam-gu on the day are examining the products. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Joeslgina] "Isn't this a price you can't refuse?" Ms. Jang Eun-young, in her 30s, who has been considering replacing her smartphone since last summer, rushed to the nearby "holy ground" as soon as Samsung Electronics' new smartphone 'Galaxy S21' pre-orders began last week. Using an unlimited data plan, Ms. Jang said, "I came because they said the official subsidy is up to 500,000 won," adding, "After checking various conditions like contract terms and card issuance, the actual purchase price drops significantly. I'm satisfied in terms of cost-effectiveness."

Samsung Electronics leads, and the three mobile carriers push. This is the story of the Galaxy S21, which No Tae-moon, President of Samsung Electronics' Wireless Business Division, confidently said "will lead industry growth this year." The Galaxy S21 was launched at a lowered price from the start, debuting as Samsung's first flagship phone priced in the 900,000 won range, and the carriers also provided strong support by setting official subsidies up to 500,000 won. If this continues, it is expected that the annual sales target of 30 million units will be easily achieved.

◆The Galaxy S21 Ignites

According to related industries and securities firms on the 18th, considering the launch date brought forward by more than a month compared to previous years, a shocking launch price lowered by about 200,000 won, and carrier official subsidies twice that of the previous model, the global shipment volume of the Galaxy S21 series this year is estimated to increase by 15-20% compared to its predecessor. Ko Eui-young, a researcher at Hi Investment & Securities, analyzed, "Sales within the year are expected to be about 30 million units." Cho Cheol-hee, a researcher at Korea Investment & Securities, also predicted, "Shipments will increase due to the improvement in the smartphone market and the weak performance of competitor Huawei."

The domestic pre-order atmosphere is also not bad. On online communities such as Ppomppu and Clien, certifications from Galaxy S21 pre-order customers have been ongoing since the 15th. One netizen who purchased a self-supplied phone at an offline store last weekend said, "There were as many as three teams waiting, so there were a lot of people," and added, "The staff even said they couldn't remember how many units they sold today," conveying the atmosphere. Another netizen also evaluated, "The Galaxy S21 will sell better than its predecessor," emphasizing, "Above all, the price is a merit."

In particular, there are continuous expectations that the Galaxy S21 will absorb a large amount of the so-called 'pent-up demand' that was suppressed due to the COVID-19 pandemic last year.

The success of the Galaxy S21 is also important for Samsung Electronics. It can solidify the Galaxy series' position during the transition from LTE to 5G. Additionally, it is an opportunity to narrow the gap with Apple in the 5G phone sector and to capture market share from Huawei, which is under U.S. government sanctions. The burden of overcoming the predecessor's poor performance, which failed to reach 30 million units in sales, cannot be ignored.

President No expressed strong confidence in the Galaxy S21 series through Samsung Electronics Newsroom the day before, saying, "During the preparation process, we received positive responses from carriers and partners regarding the new design, professional-grade camera, smooth integrated user experience, and performance."

◆Mobile Carriers Also Engage in Marketing War

The mobile carriers have also started promoting the Galaxy S21. On the first day of pre-orders, the 15th, the carriers announced official subsidies of up to 500,000 won. Considering that the previous model's official subsidy was around a maximum of 240,000 won, this is a shocking start. If customers choose a 5G plan costing more than 85,000 won per month, the actual purchase price of the Galaxy S21, reflecting an additional 15% subsidy, drops to the low 400,000 won range.

Following LG Uplus, which fired the starting shot, KT also raised its official subsidy to a maximum of 500,000 won within a day, intensifying the subsidy competition. SK Telecom, which currently offers the lowest maximum official subsidy of 170,000 won among the three carriers, is also expected to join this race soon. The announced subsidies are scheduled to be finalized on the 22nd, when pre-order customers begin activation.

The background behind carriers setting such high subsidies, after being criticized for "stingy subsidies" until last year, is the competition to secure 5G subscribers. It is explained that the suppressed replacement demand will largely shift to 5G this year. With Samsung Electronics, the manufacturer, launching an all-out marketing campaign, carriers have no choice but to intensify efforts to attract 5G subscribers. Additionally, this can be interpreted as a response to the increasing number of consumers, especially among the younger generation who value cost-effectiveness, choosing the 'self-supplied + MVNO' sweet combination that bypasses carriers.

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