SKT Also Raised Subsidies for 'Galaxy Z Flip 5G'... Up to 480,000 KRW

[Image source=Yonhap News]

[Asia Economy Reporter Joselgina] Ahead of the launch of Samsung Electronics' new foldable phone, SK Telecom has also joined the movement to clear out inventory of the 'Galaxy Z Flip 5G.' Following LG Uplus and KT, the official subsidy for this device has been raised to a maximum of 480,000 KRW. The actual purchase price of the device has dropped below 800,000 KRW.

According to industry sources on the 30th, SK Telecom raised the official subsidy for the Galaxy Z Flip 5G from a maximum of 170,000 KRW to 480,000 KRW as of that day. This is the first time SK Telecom has increased the official subsidy for this model since its release in September last year.

The retail price of the Galaxy Z Flip 5G has been lowered from the original 1,650,000 KRW to 1,349,700 KRW. When using SK Telecom's highest-priced plan, which costs around 120,000 KRW per month, the actual purchase price, including an additional 15% subsidy from the distribution network, drops to the 790,000 KRW range.

This is interpreted as a move to reduce the price of the older model to clear inventory in advance ahead of the launch of Samsung Electronics' new foldable phone. Samsung reaffirmed its policy to make 2021 the 'first year of foldable phone popularization' through the launch of new foldable products during its earnings conference call the day before. IT tipster Ross Young revealed that Samsung Electronics is expected to unveil the Galaxy Z Flip 2 as early as the first half of the year, or by July at the latest.

Competitors LG Uplus and KT raised the official subsidies for the Galaxy Z Flip 5G to a maximum of 500,000 KRW and 480,000 KRW in February and April, respectively, ahead of SK Telecom.

The foldable phone market, which is virtually dominated by Samsung Electronics, is growing as Chinese manufacturers such as Xiaomi and Huawei, emphasizing cost-effectiveness, have recently thrown down the gauntlet one after another. According to market research firm Counterpoint Research, the global foldable phone market is expected to grow threefold from 5.6 million units this year to 17.2 million units next year.

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