'Cheolsu Review' LG Phone Actual Purchase Price Drops... LG Wing Official Subsidy Also Increased

[Asia Economy Reporter Joselgina] The actual purchase price of LG Electronics' latest devices is sharply declining as the company stands at a crossroads regarding the withdrawal of its smartphone business. Analysts suggest that a full-scale clearance of inventory, presumably in preparation for business exit, is underway.

According to industry sources on the 18th, SK Telecom raised the official subsidy for LG Electronics' strategic smartphone 'LG Wing' from a maximum of 170,000 KRW to 500,000 KRW the day before. By plan, the subsidy was adjusted upward from 100,000?170,000 KRW to 389,000?500,000 KRW.

As a result, consumers' actual purchase price, including additional subsidies from distribution channels, drops to the 520,000 KRW range. The LG Wing, launched in October last year, had a retail price of 1,098,900 KRW. This smartphone features a form factor where the front screen rotates horizontally to reveal a second screen underneath, marking the first product of LG's innovation strategy, the 'Explorer Project.'

Prior to SK Telecom, LG Uplus also raised the official subsidy for the LG Wing to 600,000 KRW in December last year, just three months after its release. KT offers the lowest subsidy among the three major carriers at 240,000 KRW for the highest plan, but it is reportedly considering increasing the subsidy soon.

A representative from a sales outlet located in Yeongdeungpo-gu, Seoul, stated, "We expect the subsidies for LG Electronics devices, including the LG Wing, to increase further," adding, "This is partly due to inventory clearance concerns amid fears of withdrawal." Official subsidies are jointly borne by mobile carriers and manufacturers, but the exact burden each party carries is not disclosed. Additionally, distribution channels provide an extra subsidy amounting to 15% of the official subsidy.

Currently, LG Electronics' official online mall is running a promotion this month where customers purchasing the LG Wing unlocked can receive a 200,000 KRW Shinsegae gift certificate. Furthermore, on used goods marketplaces such as Danggeun Market, unopened or simply opened LG Wing devices are listed for 400,000?500,000 KRW, which is less than half of the original retail price.

The sharp drop in actual purchase prices is not limited to the LG Wing, which is in its fifth month since release. Last month, amid intensified rumors of LG Electronics' smartphone withdrawal, LG Uplus raised the official subsidy for the LG V50 to a maximum of 730,000 KRW. In the same month, SK Telecom increased the official subsidy for the LG V50S to a maximum of 600,000 KRW. LG Electronics also showed signs of clearing inventory by releasing the LTE version of the LG Velvet, launched in the first half of last year, exclusively for budget phone carriers in Korea at virtually zero cost.

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