‘Galaxy S21′ costs 150,000 won… KCC’s transparent measures are also’useless’

Input 2021.01.25 15:43 | Revision 2021.01.25 15:51

Three telecom companies put in illegal subsidies for Galaxy S21
Cheaper than the previous Galaxy S20 at some stores
Question about the effectiveness of KCC’s policy… increasing self-sufficiency customers

As soon as the Samsung Galaxy S21 pre-order period ended on the 21st, a huge amount of illegal subsidies is permeating the domestic handset sales distribution network. It has been confirmed that you can purchase the Galaxy S21 for at least 150,000 won if you go to the so-called’Seongji (sweetfish at a place where smartphones are sold cheaply). It is cheaper than its predecessor,’Galaxy S20′. The measures for “transparent sales incentives” signed by the Korea Communications Commission and the three mobile communication companies have also become useless.

According to the smartphone market chart identified by Chosun Biz on the 25th, Galaxy S21 basic models are sold for an average of 200,000 to 300,000 won at various mobile phone stores nationwide that support illegal subsidies. Some stores sell it down to 150,000 won. The plus model is 300,000 to 500,000 won, and the ultra model is 600,000 to 700,000 won.

Earlier, the three telecom companies released the Galaxy S21 and set an unusually publicly disclosed subsidy of up to 500,000 won. Nevertheless, if you receive additional support for illegal subsidies compared to the actual purchase price that received the maximum public subsidies, you can get the product at a price that is nearly twice as cheap.

Both number transfer and device change LG U+ (032640)Is the cheapest and KT(030200), SK Telecom (017670)The price is on the lower side in order. In order to avoid the surveillance network, related distributors open a messenger chat room, provide price quotes for each product, and then individually inquire about the location of stores in a specific region.

To purchase products through these channels, cash advance payment is essential. In addition, it was found to be in the form of subscribing to an expensive rate plan of about 90,000 won, maintaining it for 6 months, and subscribing to additional services for 2 to 3 months.

In the distribution network, if the Galaxy S21 sales growth gradually slows, it is also expected that the market price will drop further than the current one within two to three months. Samsung Electronics (005930)Is striving to increase the sales of the Galaxy S21 compared to the previous Galaxy S20.

Although the Galaxy S21’s pre-reservation volume is 20% more than its predecessor, it is difficult to guarantee whether this trend will continue after the official release on the 29th. Analysis shows that the high pre-reservation volume was particularly effective for free gifts such as wireless earphones.

As competition for securing 5G mobile communication (5G) subscribers was fierce for all three telecom companies, other weapons were needed to secure customers in addition to the public announcement subsidies. An official from the telecommunications industry said, “Since all three companies have raised the disclosure subsidies for the Galaxy S21 to a similar level, competition through additional subsidies is inevitable from now on.”

In general, illegal subsidies are also referred to as sales incentives, which are formed by manufacturers and carriers in the name of marketing expenses in the distribution network. In addition to the Galaxy S21, the latest smartphone illegal subsidies continued to prevail in the distribution network during the enforcement of the Dantong Act. In particular, after the commercialization of 5G in April 2019, the three telecom companies sprayed enormous illegal subsidies to lead the market in the early stages, and received a penalty of KRW 52 billion from the Korea Communications Commission.

On the 8th, SK Telecom, KT, and LG Uplus submitted their plans to prevent the recurrence of illegal subsidies to the Korea Communications Commission and have been operating from this month.

According to the Korea Communications Commission’s implementation plan, telecommunications companies deliver sales incentives to the distribution network in a standard format that includes the terminal type, customer type (number transfer, device change, etc.), and the size of the support fund. At the same time as the sales incentive is executed, it is entered into the computer of each telecommunication company.

However, even this is’blindfolded and aung’. In the end, no matter what kind of policy the KCC makes, there is a limit to the process of catching illegal subsidies. For this reason, many users want to abolish the Dantong Act, and the National Assembly is also discussing the revision of the related law. The Korea Communications Commission established a policy to increase the limit of public announcement subsidies this year through the revision of the Dantong Law.

Nevertheless, it is expected that the result of discriminating smartphone purchases among users will continue as long as there is a single communication method. After purchasing a self-contained phone, many users choose to subscribe to an affordable phone plan instead of the three telecom companies. In fact, it is reported that the sales of self-sufficient models during the pre-reservation period of the Galaxy S21 have increased three times compared to the previous one, accounting for 30% of the total sales.

Meanwhile, counterpoint research, a market research firm, predicted that the annual domestic sales of the Galaxy S21 series will reach about 2.4 million units due to benefits such as an offensive to raise subsidies to secure 5G subscribers by telecommunications companies. This is about 40% higher than the annual sales of the previous Galaxy S20 series.