Subsidies for Galaxy Note 7 are unveiled

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Subsidies for Galaxy Note 7 are unveiled


Mobile carriers scrambled to advertise Saturday the subsidies they will offer on the latest Samsung smart device, the Galaxy Note 7 phablet.

LG U+, the smallest of the three, is offering the highest amount of government-regulated subsidy at 264,000 won ($238) for customers who buy the phablet and subscribe to the most expensive monthly plan, with basic service fee of 110,000 won. The price tag for the 5.7-inch Android phone with an iris scanner and waterproof stylus S Pen will drop to 724,000 won from the phone’s original retail price of 988,900 won.

The subsidy offered by SK Telecom is 248,000 won and from KT, 247,000 won - all based on monthly subscription fees of more than 100,000 won.

The pricier the monthly plan is, the bigger the subsidy. For the most popular subscription plan of 65,890 won, the subsidy offered by LG U+ has been set at 158,000 won, whereas KT offers 150,000 won and SK Telecom provides the smallest at 137,000 won.

The lowest subsidy - for the smallest base fee - is 60,000 won from SK Telecom, 75,000 won from KT and 79,000 won from LG U+.

Individual cell phone stores have the option of offering additional discounts of up to 15 percent of the subsidy, or 39,600 won maximum. The total discount from LG U+, for instance, could add up to 303,600 won.

Given the overall subsidy level for the Note 7 is smaller than for its predecessor, the Note 5 - Samsung skipped serial number 6 - Note 7 buyers are advised to opt for the other choice of getting a 20 percent monthly fee discount.

That option has the condition that they subscribe for at least 24 months. LG U+ subscribers on 110,000-won plans would get 528,000 won in discounts over the total subscription period - 224,400 won more than if they choose the purchase subsidy.

There are additional ways to buy a Note 7 at a cheaper cost. Each carrier has come up with various customer benefits such as a 480,000 won discount on top of the subsidy when the phone is bought with the T Samsung Card v2 credit card on a two-year monthly installment plan with SK Telecom.

The three carriers on Saturday began accepting preorders through Aug. 18.

They were initially planning to disclose subsidy plans on the day the phones are shipped - Aug. 19 - but they advanced the date to sell as many Samsung flagship phones as possible before competition heats up in the smartphone market.

Samsung rival Apple is reportedly planning to show off much-anticipated iPhone 7 in early September and LG Electronics is slated to debut its V20 phablet on Sept. 6, a month earlier than with the preceding model V10. Chinese giant Huawei, the world’s third-largest smartphone maker, launched its 6.6-inch Honor Note 8 phablet last Monday.


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