Older Models Will Be Disposed And Newer Models’ Store Prices Will Be Decreased
A competition of lowering Smartphones’ store prices is happening due to release of Apple’s iPhone 6S because it is expected that telecommunication industries will dispose cellphones that are in stock before iPhone 6S is released.
According to telecommunication industry, it is predicted that cellphones’ stores prices will decrease one after the other starting from middle of October before iPhone 6S is released (predicted to be sometime between end of October and early November) in South Korea. It is estimated that a serious discussion will take place after the 8th when SK Telecom resumes its business.
Traditionally Apple lowered a price of previous models when a new iPhone was released. Because popularity of iPhone 6, which was released last year, is still high, it is expected that South Korea’s cellphone manufacturers will correspond by lowering store prices. There is a possibility that Samsung Electronics will adjust prices of Galaxy S6 that was released in last April and low and medium-priced models such as Galaxy A8, A7, and A5. It is also inevitable for LG Electronics to not lower store prices of its current G series.
Even last year when iPhone 6 was released, Samsung Electronics and LG Electronics reduced store prices of major cellphones about $43 to $86 (50,000 KRW to 100,000 KRW) before and after its release. Before iPhone 6 was released, Samsung Electronics lowered store price of Galaxy Note 3 and also reduced store prices of Galaxy S4 LTE48-A, G3-A, G3 Beat and others one after the other. After iPhone 6 was released, prices of medium and low-priced phones were lowered. Store prices of Galaxy Win, Galaxy W, Galaxy Grand 2, and G Pro were lowered. Pantech also joined a trend by lowering prices of Vega Secret Note and Vega Iron 2. These kind of movements are also happening this year as well.
LG electronics set store price of ‘V10’, which is considered as a Super Phone, at $689.80 (799,700 KRW). Although LG Electronics did this according to situation of domestic business, it is more appropriate that it did so because it had a release of iPhone 6S in mind. KT is examining lowering of store price of iPhone 6.
“It has more marketing effect to lower store price before a release of new product rather than after. Although we are examining amount of phones that are in stock and others, but nothing is really confirmed as of right now.” said a person that is affiliated with KT. Industry is seeing that each mobile telecommunication business is having a close discussion with Apple.
Popularity of ‘LUNA’, which was released in last September and set itself as a major medium and low-priced phone, is also putting pressure on businesses to lower their store prices. LUNA resolved an early problem on supply and demand, and additional supply is being supplied starting from this month.
Along with reduction of store prices, increase of support fund for cellphones that were released 15 months or more ago is expected. Maximum limit that one can receive support fund for Galaxy S5 broadband LTE-A that surpassed 15 months from its release date in last monthand G3 Cat.6 that is reaching 15 months from its release date on the 22nd of this month will be lifted, and this will greatly reduce financial burdens for customers.
Staff Reporter An, Hochun | hcan@etnews.com
