It Is Expected That Release Of iPhone 6S Will Bring Great Impact As Prices Will Reduce
As iPhone 6S is set to be released on the 23rd, Smartphone market is fluctuating.
Mobile telecommunication businesses are preparing for release of iPhone 6S by reducing store prices of past products and increasing funding. Due to overall reduction of store prices and popularity of medium and low-priced phones, competition for reduction of Smartphones’ prices will become fiercer than previous years.
According to telecommunication industry, reduction of Smartphones’ prices from premium phones to inexpensive phones is expanding from manufacturers to mobile telecommunication businesses. Following reduction of Samsung Electronics’ Galaxy S6 and S6 Edge’s store prices, KT also reduced $87.54 (100,000 KRW) from galaxy Note 4’s store price.
LG Electronics, which had decided on strategic Smartphone V10’s store price to be around $612.75 (700,000 KRW), already reduced more than $105.14 (120,000 KRW) from G4’s store price that is now around $612.40 (699,600 KRW) in August. In September, it reduced more than $175.07 (200,000 KRW) from G3’s store price that is now around $437.68 (500,000 KRW).
Many mobile telecommunication businesses are participating as well. SK Telecom increased LTE48 funding of LG G Pro, G3 Cat. 6, Galaxy J5, Galaxy Note 4, and Galaxy Note 4S in earlier this month from most of flat pricing rates to middle and late-end of $175.07 (200,000 KRW) and recently increased funding of Galaxy A8 and A5 up to $288.87 (330,000 KRW), which is their upper limit.
KT and LG Uplus increased funding of new phones and old phones earlier this month according to business stoppage by SK Telecom. When LG V10 was released on the 8th of August, LG Uplus presented funding of $249.48 (285,000 KRW (maximum funding standard). If additional funding from stores is included, one can purchase it at around $350.14 (400,000 KRW).
Store prices of 10 kinds of major Smartphones were also reduced last year when iPhone 6S was released. As Samsung Electronics and LG Electronics are putting everything on the line for Galaxy Note 5 and V10 respectively, more types of Smartphones’ prices will be reduced this year than the last year.
Traditionally when Apple released its new products, its competitors had responded by reducing products’ prices. However reduction of Smartphones’ prices due to intensified competition recently is making this trend more realistic and it is clearly shown in Samsung Electronics’ Galaxy Note series.
While beginning price of first model of Galaxy Note was at $866.61 (999,000 KRW), store prices of Note 2 and 3 easily exceeded $875.36 (1 million KRW). Afterwards while Galaxy Note 4’s price was reduced to $831.59 (950,000 KRW), Note 5 was released at $787.65 (899,800 KRW). It was the same for LG Electronics’ G series as well.
Expansion of medium and low-priced phone market is also affecting reduction of Smartphones’ prices. Starting with SK Telecom’s LUNA, medium and low-priced phones such as Galaxy A8, Galaxy Grand Max and others that have low prices compared to high performance are inducing reduction of overall prices. Industries are predicting that this trend will continue on for a while.
Starting with sale by subscription on the 16th, Apple Korea is releasing iPhone 6S in South Korean markets on the 23rd. Store price of iPhone 6S (16 GB) will be $805.33 (920,000 KRW), which is higher than iPhone 6 due to exchange rate of manufacturers’ sales price. It seems however that price will go down lower than this when it is released by mobile telecommunication businesses.
Staff Reporter An, Hochun | hcan@etnews.com