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The Galaxy S24 Series: Potential Increase in Subsidies and Impact on Pre-Order Sales

Execution time2024-01-28 06:01

The publicly announced subsidy is in the low range of 200,000 won, with the possibility of an increase as early as the 30th.

Expanding support may be limited… The Korea Communications Commission is likely to hold another meeting with high-ranking company officials

Galaxy S24 pre-order sales are set to hit a new record

(Seoul = Yonhap News) Reporter Kim Joo-hyung = The artificial intelligence (AI) smartphone Galaxy S24 series is expected to set a new record for advance sales of Galaxy smartphones. On the 24th, the telecommunications industry explained that domestic pre-order sales for the Galaxy S24, which began on the 19th of this month, increased by about 10% compared to the previous Galaxy S23 series. Galaxy S24 pre-order sales will run until the 25th of this month, and will begin to open on the 26th. The official worldwide release date is the 31st of this month. The picture shows a mobile phone shop in Seoul on the same day. 2024.1.24 kjhpress@yna.co.kr

(Seoul = Yonhap News) Reporters Kang Geon-taek, Lee Jeong-hyeon, and Oh Gyu-jin = Samsung Electronics, which is about to officially launch due to pressure from the government to ease the burden of communication costs[005930]Attention is paid to see if the actual purchase price of the Galaxy S24 flagship smartphone series will drop.

According to the telecommunications industry on the 28th, SK Telecom[017670]KT[030200]LG U+[032640] It is known that the three mobile communication companies and Samsung Electronics are carefully considering whether they can expand public subsidies for the Galaxy S24 series.

The three telcos announced a public subsidy of up to 200,000 won on the 26th, just after the pre-order deadline, but it may increase further around the launch this week.

So far, SK Telecom has announced that it will provide publicly announced subsidies from 100,000 to 200,000 won, KT from 50,000 to 240,000 won, and LG U+ from 52,000 to 230,000 won. SK Telecom was the first to increase the subsidy​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​to 30,000 won compared to the publicly announced subsidy ​​​​​​(100,000-170,000 won) announced on the 19th, the first day of pre-registration.

It is rare, but not unprecedented, to modify already announced public subsidies before they are released.

The general comment is that the pressure of government policy is behind this review.

On the 24th and 25th, just before the completion of the publicly announced subsidies for telecom companies, the Korea Communications Commission called in sales executives and working-level staff from the three telecom companies and Samsung Electronics to discuss issues such as ease the burden of telecommunications. costs.

In particular, it has been reported that the Korea Communications Commission is calling for an increase in public subsidies for smartphones, including the Galaxy S24 series.

Lee Sang-in, Vice Chairman of the Korea Communications Commission, explains the repeal of the Terminal Classification Act

(Seoul = Yonhap News) Reporter Kim Joo-hyung = Lee Sang-in, Vice Chairman of the Korea Communications Commission, explains details related to the repeal of the Terminal Distribution Act at a briefing related to the regulation of every life day and life of the People. A Livelihood Debate held at the Seoul Government Assembly on the afternoon of the 22nd. From left, Korea Communications Commission Vice Chairman Lee Sang-in, Second Vice Minister of Science and ICT Park Yun-gyu, Government Policy Coordinating Office Bang Ki-seon, Vice Prime Minister of Culture, Sports and Tourism Jeon Byeong-geuk, and First Vice Minister of Trade, Industry and Energy Kang Kyeong-seong. 2024.1.22 kjhpress@yna.co.kr

The government recently announced its plan to completely repeal the Mobile Communication Terminal Device Distribution Structure Improvement Act (DBT) to promote market competition and enable consumers to buy mobile phones at low prices, however, it is said that it will take time long to pass it to the National Assembly and be implemented In this regard, the plan is to follow measures at the same time that consumers can feel immediately.

Previously, at a meeting of senior secretaries on the 22nd, President Yoon Seok-yeol instructed, “Even before repealing the Mobile Communications Act, devise a plan to significantly reduce final prices by reviving marketing competition among operators.”

If carriers and mobile manufacturers decide to expand public subsidies, it is very likely that it will be announced as early as the 30th, the day before launch.

According to the Korea Communications Commission’s notice on ‘Detailed standards for announcing and posting methods of subsidies, etc.’, mobile communication service providers can change the disclosed information, such as final subsidies, on Tuesdays and Fridays.

It seems that the companies involved are in trouble because they were confused by the last minute expansion of subsidies, but find it difficult to completely ignore the government’s demands.

However, if the subsidy for the latest flagship smartphone increases significantly, there may be a side effect of older models selling relatively less and being piled up in inventory. In the case of manufacturers , the operating profit ratio is usually in the 10% range, so unless they are willing to take a loss, they may not be able to increase the subsidy.

However, the Korea Communications Commission is reported to be seeking to hold meetings with high-level executives from each company this week as well, adding weight to speculation that measures will be taken to alleviate the purchasing burden in some way, such as expand subsidies.

All three telcos also run various promotions, including contact card discounts and used cell phone compensation programs.

cylchcyntaf@yna.co.kr

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2024/01/28 06:01 Sent

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