[Report] Fold and Flip4 Launch First Weekend... Prices Plummet Due to Illegal Subsidies

The collective mobile phone market at Sindorim Techno Mart, Seoul, visited on the 27th

[Asia Economy Reporter Oh Su-yeon] Samsung Electronics' Galaxy Fold and Flip4 were officially released on the 26th. Although the official subsidies increased compared to the previous models, prices dropped sharply immediately after release due to illegal subsidies being heavily supported by some retailers.

On the first weekend after the Fold and Flip4 release, the 27th, the mobile phone collective market at Sindorim Technomart in Seoul was lively for the first time in a while. Although offline retail districts had been depressed due to COVID-19 and the rise of so-called online 'holy sites' like Band, the Fold and Flip4 showed record-breaking pre-sale enthusiasm, and this place seemed to fully benefit from the new flagship device launch effect.

Each store had at least 2 to 3 customers, and some had more than 5, sitting and inquiring about phone prices. Previously, it was difficult to walk through the aisles due to aggressive solicitation, but now, the retail staff seemed busy attending customers, reducing their solicitation activities. Citizens leaving the collective market also appeared to be carrying shopping bags containing new phones.

The initial official subsidy for the Fold and Flip4 varies by carrier and plan but is up to 650,000 KRW. Considering that the maximum official subsidy was 500,000 KRW at the previous model's launch, this is about 150,000 KRW higher. Additionally, with the network additional subsidy (up to 15% of the official subsidy) of 97,500 KRW, the purchase price can be as low as 605,500 KRW.

However, on the same day, for the Flip4 256GB model, it was confirmed that prices dropped to the 300,000 KRW range at online holy sites when switching numbers, depending on the carrier and plan.

Offline retail channels showed similar trends. When the reporter entered a store, the owner asked, "How far have you checked?" and showed a calculator. After entering the price confirmed from the online holy site price list, the price instantly dropped by 10,000 KRW.

The store owner asked if the reporter had made a pre-order and said, "If you didn't pre-order, there's a difference, but this is the real bottom price," adding, "The dealer fee is less than 20,000 KRW. There's no profit, but I'll give you this price," encouraging the purchase.

The prices at other visited stores were similar. Based on the reporter's carrier and using a plan in the 90,000 KRW range, the device change price was in the mid-400,000 KRW range. However, if only the official subsidy and additional subsidy are received without illegal subsidies on the same plan, the maximum discount is 575,000 KRW, making the device price 778,000 KRW.

At the next store, the reporter wrote down the prices confirmed at other stores on paper. The staff said, "You came after checking like this?" and replied, "If you buy right now, I'll give you this price," showing 400,000 KRW.

When the reporter hesitated, the staff said, "If you visit more, it will be similar," and confidently added, "This is the cheapest. You can even post this on phone communities."

According to the industry, with the recent release of the Fold and Flip4, illegal subsidies, which had been quiet during the summer off-season, are rampant in some retail networks. Earlier this year, the Galaxy S22, released in early 2022, became a 'free phone' about two months after launch due to a flood of illegal subsidies.

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