Samsung Galaxy S5 with 10 Percent off in South Korea
With just two days before the worldwide launch of the Samsung Galaxy S5, the smartphone maker has announced that it will cut off prices with 10 percent in South Korea, in order to make the high-end more affordable in the country and to increase the sales on the S5. More than that, a Reuters report state that, because of the strong competition between Samsung and Apple, the first is rather under pressure to keep its high-end smartphone lineup more affordable before the market reaching saturation.
Analyst Lee Seung-Woo at the IBK Securities states that the so called 10 percent discount is meant to “reflect how much Samsung is agonizing to secure margins.” He also continues that the company is launching high-end devices at lower prices, and that in order to attract more customers, the high prices will not lead eventually to high sales in South Korea. Of course, each region has its own rules to follow.
Stating that, we are not sure if these cuts-off will be also seen on other markets, after the Samsung Galaxy S5 will have been eventually launched worldwide on April 11, but the company may now rest on its laurels that in South Korea at least, customers will have the opportunity of buying a high-end device at an affordable price.
Perhaps this is a clear sign that Samsung might want to focus on its own market, with a mid-end device to be manufactured, that would eventually compete with other smartphones from the same market like Motorola Moto G, which comes with great specs but at great affordable prices. Thus, the high-end S5 should be more aimed at other profitable markets like Europe or the US.
What do you think guys? Should Samsung lower the S5`s price all over the world or would you have it as a premium device with full specs and features? Lower price would mean fewer specs enhanced on the high-end device? Don’t forget to write! Cheers!