Telecom market heats up on Note 7 sales
A model promotes the release of Galaxy Note 7, at an LG Uplus retail store in southern Seoul, Friday. More than 35,000 handset users shifted their carriers on the launch date of the new Samsung handset, up from 12,000 users a day earlier. The nation’s third-largest mobile carrier offers the highest subsidy of 264,000 won ($235) for the Note 7, while SK Telecom and KT provide 248,000 won and 247,000 won subsidies, respectively. / Courtesy of LG Uplus
By Lee Min-hyung
The nation’s telecom market has heated up during the weekend on the sale of Samsung Electronics’ new handset ― Galaxy Note 7.
According to data from the telecom industry, more than 35,000 handset users changed their carriers on Friday when the 5.7-inch Samsung handset started selling here. This is a massive increase, compared to a day earlier when 12,000 users shifted their carriers.
A telecom watchdog considers a telecom market “heated up” when the number exceeds 24,000 in a day.
Given that more than 400,000 Galaxy Note 7 phones have been pre-sold here, expectations are that the flagship handset is the major reason for the heating up of the market.
In a specific breakdown, SK Telecom, the nation’s top carrier, saw its subscribers up 722 on Friday, with those of LG Uplus, the third-largest carrier, increasing by 445 on the same day. The number of subscribers for runner-up KT decreased by 1,167, according to data.
Mobile carriers accepted preorders for the Note 7 from Aug. 6 to 18, recording more than 400,000 presale orders in the Korean market. The figure is almost a threefold increase, compared to Galaxy S7 and S7 edge launched this past March.
But this is expected to be temporary, coming largely from Note 7 presales. Critics say that this will continue until early next week, and the market will slowly normalize.
Expectations are that the three carriers will intensify marketing activities in the coming few days to draw more subscribers from their rival carriers. LG Uplus offers 264,000 won subsidy, while SK Telecom and KT provide 248,000 won and 247,000 won, respectively. The carriers can change the subsidy once every week.
Market analysts expect Note 7 shipments will exceed its predecessor, Galaxy Note 5, by 8.65 million given the explosive presale orders. During the weekend, a lot of customers couldn’t buy the new Samsung handset, due to a supply shortage.
Amid the explosive presale orders, Samsung Electronics extended the period for its presale promotion event from Aug. 23 to 31. On Friday, the company launched the Note 7 in 10 countries, offering the Gear Fit 2 smart fitness band as a free gift that comes bundled with Note 7 preorders.
The company also unveiled Friday the latest head-mount virtual reality device, Gear VR, which is compatible with the new Note series.