LG Electronics has decided store price of G5 to be same as store price of Galaxy S7 at $732 (836,000 KRW). This shows that LG Electronics is confident that its competitive edge in G5 does not fall behind of Galaxy S7. Because funding from mobile telecommunication businesses is set to be similar, one can purchase G5 at about $438 (500,000 KRW) if he or she receives maximum funding.
Starting with South Korea on the 31st, LG Electronics is going to release G5 through 200 global mobile telecommunication businesses in the U.S., Europe, China and other sequentially. Store price of G5 in South Korea is $732, which is $7.88 (9,000 KRW) more expensive than its previous model G4. However it is same as store price of 32GB Galaxy S7.
Store price of a product is decided by considering many factors such as current market condition, discussion between mobile telecommunication businesses and others. A reason why LG Electronics has decided store price of G5 to be same as store price of Galaxy S7 can be seen as two reasons. First of all, LG Electronics did not make too much profit from V10 and G4 that were sold at $613 (700,000 KRW) and $722 (825,000 KRW) respectively. If price of a product is not reduced for sure, it does not really help too much with sales.
Secondly, it indicates LG Electronics’ confidence that G5 will not fall behind when it is compared to Galaxy S7. LG Electronics is expecting a lot from G5 that has many innovative functions such as module method for the first time out of Smartphones, rear dual-camera and others. Not only is LG Electronics showing intention to compete against Samsung Electronics in South Korea, but it is going to compete against Samsung Electronics face-to-face globally.
LG Electronics also showed information about prices of 6 types of ‘Friends’ that are also going to be released with G5. Store prices of a camera module called CAM Plus and an audio module called Hi-Fi Plus are going to be $86.6 (99,000 KRW) and $165 (189,000 KRW) respectively. Store prices of 360 CAM and 360 VR and a Bluetooth headset called Tone Plus are going to be $262 (299,000 KRW) and $192 (219,000) respectively.
Until the 15th of next month, LG Electronics is going to give out CAM Plus and a battery pack for free to customers who purchase G5. During this event, one can purchase ‘B&O Package’, which is comprised of Hi-Fi Plus and H3 by H&O Play, at $253 (289,000 KRW) that is 38% discount.
“After introducing G5 and Friends in February, they have been receiving positive reviews.” said Department Head (President) Cho Jun-ho of LG Electronics MC Business Headquarters. “They will present new paradigms in mobile markets.”
Because Apple is also expecting to release its 4-inch iPhone called ‘iPhone SE’ globally on the 31st, competition between 3 Smartphone manufacturers will be on full-scale.
Staff Reporter An, Hochun | hcan@etnews.com
