Mobile carriers are in the midst of stockpiling of Galaxy S20…

Ahead of the release of Samsung Electronics’ strategic smartphone’Galaxy S21′, competition for subsidies for inventory removal by three mobile communication companies is heating up. As the publicly announced subsidies have been raised and the factory price has been cut, the illegal subsidies are on the rise.

According to Smart Choice, a mobile communication information portal operated by the government on the 13th, public subsidies for the Galaxy S20 series, which were introduced last year, rose all at once. In the case of’Galaxy S20 Plus BTS’, which was released as a limited edition, the public support fund soared to 800,000 won.

LG U+ applies a publicly disclosed subsidy of KRW 85,000 when selecting the 85,000 KRW 5G signature plan. When the public subsidy and the additional subsidy of the distribution channel (15% of the public subsidy) are added, consumers can purchase a terminal for 328,000 won.

KT cut the shipment price of the terminal by about 100,000 won. Currently, the factory price of KT’s Galaxy S20 Plus BTS Edition is 1045,000 won. SK Telecom and LG Uplus cost 1.144,000 won and 12,48500 won, respectively.

The drop in factory prices is largely due to the launch of a new smartphone. This is to exhaust the inventory of existing products ahead of the release of the Galaxy S21. In addition, the industry message is that the model is also attributable to not performing as well as expected.

In fact, KT cut the factory price of the Galaxy S20 Plus BTS Edition, which was 1.37 million won at the time of launch, twice in September and December last year. LG U+ also lowered the factory price at the end of last year. Due to sluggish sales than expected, the actual purchase price on site has dropped to less than KRW 100,000.

The same goes for other Galaxy S20 series. LG U+ has lowered the factory price of the Galaxy S20 Ultra from 1.452,000 won to 1.298,000 won. KT also adjusted it from 1.298,000 won to 1.199,000 won. SK Telecom cut it to 1.48,500 won.

The current price of the Galaxy S20, which had a factory price of 1.48,500 won, is 1144,000 won. SK Telecom and KT provide 480,000 won and LG U+ 650,000 won, based on the highest rate plan, for the three mobile carriers’ Galaxy S20.

An official from one store said, “The model with the best price right now is the Galaxy S20 series.”

Another store official said, “Now, buying the Galaxy S20 series is the most profitable,” he said. “Galaxy S20 and Galaxy S20 Ultra are priced at 0 won, and in the case of iPhone mini, you have to pay 100,000 won.”

Due to inventory scouring ahead of the launch of new products, factory prices are cut, publicly disclosed subsidies are raised, as well as illegal subsidies. In the internet community, there is a case of purchasing the Galaxy S20 Plus BTS Edition for 0 won and the Galaxy S20 Ultra for 100,000 won.

Last year’s Galaxy series was sluggish, but the impact of Corona 19 was also significant. The Galaxy S20 series did not meet expectations due to the slowdown in the smartphone market due to Corona 19. This is an analysis that the actual purchase price fell at once due to the accumulation of inventory.

The price of the new Galaxy S21 is also likely to have acted as a pressure on inventory exhaustion. The price of the S21, which is officially released on the 29th of this month, is expected to be set at 999,000 won, which is 200,000 won less than the previous S20 series.

An industry insider said, “In order for manufacturers to increase overall sales, they must sell old phones even by lowering the factory price.”

Meanwhile, Galaxy S21 is scheduled to be released on the 29th after being released through the Unpack event on the 15th, and after pre-booking. Samsung Electronics and the three mobile operators plan to make advance reservations for the Galaxy S21 from the 15th.