Competition among 3 main mobile-service companies… how about variable?

LG Electronics`` strategic smartphone G6 is expected to be launched on March 10. It is a premium phone in the market in about 5 months after iPhone 7 and iPhone 7 Plus. The pre-sale atmosphere of G6 was very positive. Some also expect LG Electronics to record the largest sales volume ever by G6 launch.

Mobile service companies have already entered into marketing competition. An industry expects that the G6 will melt a frozen phone market due to the Galaxy Note 7 discontinuance. The point is whether the pre sale will lead to real sales. There is a growing interest in how much the G6 will absorb the demand for premium phones after about a month since the launch of the Samsung Galaxy S8,.

SK Telecom, KT, and LG U Plus, SK Telecom along with KT have announced the launch of the LG G6 and entered in attracting customers.

The LG G6 is a smartphone equipped with a full-vision display with an 18-to-9 aspect ratio, which can be fit in one hand. LG Electronics upgraded the Quad DAC for the domestic market to provide high-quality sound. Also, the company will start ``LG Pay`` service through software upgrade in June. Unlike its predecessor, the G5, the G6 has been adopted to the ‘basic’ of the smartphone.

These positive reviews also appear in the pre sale results. The G6 has an average of 10,000 units per day on pre sale that have been underway since March 2. It has already exceeded 70,000 units as of the last 8 days, and it is estimated that pre sold phones exceeded the final 80,000 units considering the last day of pre sale-March 9. This is more than double the previous G4 pre sale volume of 30,000 units. LG Electronics did not operate pre sale at the time of launch of the G5.


The G6``s price is KRW 899,800 (including VAT). G6 can be purchased for minimum KRW 600,000 under a mobile-service support fee. Specifically, the maximum amount of support fee for the three main mobile-service companies is KRW 173,000 ~ KRW 247,000. For instance, the support fee of KT is KRW 247,000, SK Telecom is KRW 218,000 and LG U + is KRW173,000 will be awarded based on the best price plan of KRW 100,000. It is advantageous to select a rate discount (20% discount, option) corresponding to the subsidy. In this case, users will get a discount of up to KRW 528,000 based on the KRW 100,000 rate plan when a user sign a two-year contract. User can get a discount of up to KRW 316,000 at the monthly KRW 60,000 rate plan.

The point is the actual purchase rate. With the number of subscribers and the launch of the Galaxy S8 next month, there is a strong interest in whether the premium demand for premium phones will continue to grow. It is also a matter of concern that the sentence of the Constitutional Court``s impeachment trial on March 10 may affect the sale of the G6. Some industry experts say the results of the impeachment trial can serve as a variable for the G6 actual sales. In fact, the candlelight political situation reached its peak in December last year, and consumer sentiment contracted and the number of mobile phone number transfers decreased about 10% from the previous year.

The mobile-service companies are also trying to raise the actual purchase rate by releasing the subsidy under the start of pre sale. The G6 is a welcoming addition to the stagnant phone market in terms of the mobile-service companies. Therefore, there is no doubt that it attracts the attention of users by introducing discounts on card cooperation and support programs for purchasing phones.

By Jung Yoon Hee yuni@


[ copyright ⓒ The Digitaltimes ]