'Galaxy S20+' Price Drops to 300,000 KRW Range... Maximum Official Subsidy Up to 750,000 KRW

[Image source=Yonhap News]

[Asia Economy Reporter Eunmo Koo] The official subsidy for the ‘Galaxy S20 Plus(+)’ released last year has increased up to 750,000 KRW, bringing the actual purchase price down to the low 300,000 KRW range. As the release date of Samsung Electronics’ second half strategic smartphone approaches, the prices of existing flagship models are continuing to decline.

According to industry sources on the 7th, LG Uplus raised the official subsidy for the Galaxy S20+ from a maximum of 480,000 KRW to 750,000 KRW as of the 5th. This is the highest level among the three major mobile carriers, with SK Telecom and KT currently setting their official subsidies at 480,000 KRW based on the highest-priced plans.

The Galaxy S20+ has a retail price of 1,248,500 KRW, and when using a plan costing 95,000 KRW or more per month, the official subsidy of 750,000 KRW plus an additional distribution subsidy of 112,500 KRW bring the actual purchase price down to 386,000 KRW.

This increase in the official subsidy is interpreted as a move to accelerate inventory clearance ahead of the launch of Samsung Electronics’ new strategic models such as foldable smartphones in the second half of the year. Samsung Electronics and the mobile carriers are discussing plans to release new smartphones including the ‘Galaxy Z Fold3,’ ‘Galaxy Z Flip3,’ and ‘Galaxy S21 Fan Edition (FE)’ at the end of August.

The foldable smartphones Galaxy Z Fold3 and Galaxy Z Flip3 are preparing to launch about a month earlier than their predecessors. This is seen as an effort to fill the gap left by the Galaxy Note series, which was usually released at the end of August every year, and to shorten the release interval with the Galaxy S21 series, the strategic smartphone of the first half of the year. Earlier, Samsung Electronics decided not to release a new Galaxy Note model this year. In addition, the Galaxy S21 FE, which is based on the basic specifications of the Galaxy S21 but priced lower, is expected to be introduced to the market about two months earlier than its predecessor.

As Samsung Electronics’ strategic models prepare to launch, the three major mobile carriers are consecutively raising the official subsidies for flagship models. SK Telecom raised the official subsidy for the ‘Galaxy S10 5G,’ which was noted as the world’s first 5G smartphone, from 500,000 KRW to 690,000 KRW on the 24th of last month. The actual purchase price of this model has dropped below 10,000 KRW two years after its release.

KT also raised the official subsidy for the ‘Galaxy Note10’ from 500,000 KRW to 700,000 KRW last month, lowering the actual purchase price to below 200,000 KRW. LG Uplus increased the official subsidy for the Galaxy S20 FE released last year from 450,000 KRW to a maximum of 700,000 KRW, reducing the actual purchase price of the model to below 100,000 KRW.

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