‘Galaxy S21’ self-sufficient phone popularity… cheap phone laughs and carriers cry

Input 2021.01.22 10:36

Galaxy S21’s’cost performance’ winds, increasing self-sufficiency customers
Provision of affordable phone industry, damage insurance and battery provision, etc.
Even though the public subsidy is raised by up to 500,000 won, the number of mobile service providers is less



Samsung Electronics’Galaxy S21′ pre-reservation started on the afternoon of the 15th, the product is on display at KT Square in Gwanghwamun, Seoul. /yunhap news

The affordable phone industry is laughing at the atmosphere of expanding self-sufficient phones for Samsung’s’Galaxy 21′. Self-sufficient phone is a method of purchasing an air system at home appliance stores and online shopping malls, and then using the desired communication network and rate plan. On the contrary, the mobile operator, which needs to expand subscribers to the 5G mobile communication (5G) plan, is in a vain atmosphere.

◇ Galaxy S21, iPhone 12 are higher than self-sufficient sales

According to the related industry on the 22nd, the proportion of the Galaxy S21 self-sufficiency system based on the pre-reservation period was higher than that of last year’s Apple iPhone 12 self-sufficiency system.

Samsung Electronics (005930)It is analyzed that lowering the Galaxy S21’s factory price to less than 1 million won and providing the Galaxy Buds wireless earphones free of charge to customers who made reservations in advance. In addition, providing a 15% card discount at shopping malls that sell self-sufficiency is one of the important factors of the self-sufficiency system.



/Samsung.com website capture

In fact, the proportion of the Galaxy S21 self-sufficiency purchased on the Samsung.com site and online shopping malls is estimated to be 30%, up three times that of the Galaxy S20. In the case of the iPhone 12, which provoked the desire for self-sufficiency phones last year, the rate of self-sufficiency is known to be around 20%.

From the customer’s point of view, if you receive the public subsidy benefits through a mobile operator, you must subscribe to the 5G high price plan, but if you purchase a self-sufficient phone, you can choose the 4th generation mobile communication (4G·LTE) plan, which is an affordable phone in the range of 20,000 won to 30,000 won. The advantage is that monthly communication charges can be reduced as it is possible to select a service provider that fits the call pattern without a contract period. As the number of self-sufficient phones expands, the number of customers who subscribe to the low-cost phone plan also increases proportionately.

An official from the budget-friendly phone industry said, “Galaxy S21 is not expected to be as effective as the iPhone 12, which had a very high sales volume, but it will have a high proportion of self-sufficiency among successive series.” The iPhone 12 series sold 500,000 units in advance in Korea and 1 million units in about two months of launch last year.

◇ Following the iPhone, the affordable phone industry meets water, preparing for promotion

Major domestic affordable phone companies are carrying out or planning related promotions in line with the launch of the Galaxy S21. It is not an aggressive promotion such as the release of a’exclusive plan’ like the iPhone 12, but it is expected that new promotions will be continuously developed and released while watching the market situation in the future.

First, KT M-mobile, the No. 1 market share of affordable phones in Korea, is running a promotion that supports the entire Galaxy S21’mobile phone damaged terminal insurance premium’ for up to two years to subscribers of the high-capacity unlimited data plan. This promotion was conducted for the first time when the iPhone 12 was released last year.

An official from KT M Mobile explained, “It was effective at the time of the iPhone 12 release, so we applied the same promotion to this Galaxy S21,” and said, “In addition to this, events such as providing free chargers to subscribers are in progress.” In the case of the Galaxy S21, it was released after removing the charger from the basic components. If you need a genuine charger, you have to pay 25,000 won to purchase it.



KT M Mobile Galaxy S21 promotion image. /KT M Mobile

Along with KT M Mobile, KT Skylife, a KT group company, announced on the 20th that in accordance with the launch of the Galaxy S21 self-sufficient phone, additional mobile data and 6 months subscription to Genie Music will be provided through the’Enough All’ mobile plan promotion.

2nd in the affordable phone industry LG U+ (032640)LG Hellovision, a subsidiary of the Galaxy S21, also launched a’lucky event’ that draws 21 people every week for new subscribers in accordance with the pre-booking period for the Galaxy S21. When the iPhone 12 was released, the company also launched a dedicated SIM plan, such as ‘2 types of apple SIM (5G∙LTE)’.

An official from LG Hello Vision said, “Since there is an expectation for the influx of subscribers to the Galaxy S21, we plan to discuss additional promotions internally.”

SK Telecom, a subsidiary of SK Telecom, will also promote the Galaxy 21 launch from the 22nd to the 31st. An official from SK Telink said, “For some rate plans, such as the unlimited data rate plan, we will hold an event that presents genuine chargers and gift voucher points.”

◇ The sales volume of self-sufficiency increased three times…

The position of the mobile operator to see the progress of these affordable phone subsidiaries is difficult. Based on the Galaxy S21 pre-reservation trend, the overall domestic sales volume is expected to increase by 15-20% compared to the previous Galaxy S20, but considering the reservation period so far, the reservation through the three carriers is similar to the previous Galaxy S20. Because.

At the time of launch, the Galaxy S20 had only 70-80% of its predecessor sales due to controversy over the high price and the new coronavirus infection (Corona 19) incident. Even though all three telecom companies have unusually increased the public subsidy for the Galaxy S21 by up to 500,000 won, customers are turning away. In order to receive 500,000 won of public support, it is essential to subscribe to a 5G plan of 120,000 won.



Models at SK Telecom’s ICT Multiplex T Factory introduce the Galaxy S21 Plus and Ultra models. / Provided by SK Telecom

In particular, it is pointed out that offline sales and marketing through the nationwide distribution network of agencies, which have been a weapon of mobile operators, have exposed their limitations due to the Corona 19 situation. As the situation becomes like this, the mobile operator is further strengthening its non-face-to-face promotion and marketing through YouTube, etc. online.

On the afternoon of the 21st, SK Telecom held a non-face-to-face live show’Sales Outing’ that provides information on the purchase benefits of the Galaxy S21. On the 15th, the first day of pre-reservation, KT broadcasted the Galaxy S21 live commerce on YouTube, online video service (OTT)’Season’, and Hyundai Home Shopping application (app).

LG U+ does not conduct separate non-face-to-face online events and opening events during the pre-booking period for the Galaxy S21. Unlike its competitors, in order to further develop its own low-cost phone ecosystem, it launched a’honey cooperative’ promotion in connection with a rate plan with 11 low-priced phone subsidiaries and partners.

A telecom industry official said, “Only when the Galaxy S21 succeeds, we can expect to achieve 20 million 5G subscribers within this year as well as the first half results.”

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