Variable that currently is moving cellphone market is price. Even when analysts are saying that the market is stagnant, shockingly cheap products with good functions became scarce in an instant. Representative product is Samsung’s Galaxy Note 3 Neo, and it seems that cellphone market in summer time, which conventionally an off-season for cellphone markets, will be busy as other products like Galaxy Note 3 Neo are waiting in a line.
According to mobile communication industry on 23rd, ‘Galaxy Note 3 Neo’ that Samsung Electronics released last March is currently in short supply. This product is currently in a ‘Temporary Out of Stock’ situation in SK Telecom’s official online mall called Tworld Direct. Even in KT, there aren’t any products left in online and offline stocks. As warehousing inventory is getting delayed in Samsung Store, one has to wait as long as a week to receive this product. It is a situation that is contradicting to an evaluation that mobile communication market is stagnant.
It was a success that both stores greatly increased their subsidies this month. KT increased this product’s subsidy, which the factory price is $515.65 (599,500 KRW), up to maximum of $515.22 (599,000 KRW). If one receives additional subsidy of $0.43 (500 KRW), then he or she can purchase product for free. SK Telecom is also currently providing maximum subsidy of $515.65. LG Uplus is stimulating a phenomenon of short supply by providing maximum subsidy of $493.72 (574,000 KRW) starting from 22nd through online mall. As 15 months restriction for Galaxy Note 3 Neo is released starting from this month, it does not receive cap regulation for its subsidy.
Phenomenon of short supply of Galaxy Note 3 Neo was possible due to its inexpensive price and strong functions. Although it is a distribution-type, it was made based on Galaxy Note 3 and its fact that its functions were excellent compared to its price ever since its release date became viral. It has HD Super AMOLED screen, 2.3 GHz Quad-Core Processor, 2GB RAM, S-Pen, and etc.
Because products with excellent functions that are practically free are being released one after the other, it is expected that mobile communication market will be active for awhile. Because mobile communication companies are preparing to provide maximum subsidy at the same time as when Samsung Galaxy A8 and Galaxy J5 get released, people can buy them at a cheap price. LG Electronics’ Band Play and G Volt are also being picked as products with excellent functions compared to their prices.
“Although portfolio of expensive cellphones over $602 (700,000 KRW) was over 50% before Mobile Terminal Distribution Act, it is now decreasing. Reasonable consumption tradition is taking its root as there are certainly increase interests regarding medium to low-priced cellphones.” A person in communication industry said that more people are now interested in medium to low-priced cellphones.
Staff Reporter Kim, Yongjoo | ky.j@etnews.com