Mobile carriers scramble to sell old phones before Galaxy S21 arrives

A computer rendering of what the Galaxy S21 may look like released on tech tipster OnLeaks. [SCREEN CAPTURE]

Ahead of the planned release of Samsung’s Galaxy S21 smartphone next month, telecom companies are slashing the price of the Samsung Galaxy S20 and iPhone 12 for the year-end shopping season.

KT upgraded its maximum discount on Wednesday to 700,000 won ($632) from 600,000 won for the Galaxy S20 Ultra.

The increased discount — which is dependent on the overall package the customer purchases — would mean the S20 Ultra can be bought for as little as 493,000 won, far lower than its initial 1.59-million-won price tag, following two reductions in price in September and earlier this month.

The BTS edition model of the S20+ is also now available for as little as 650,000 won, with the retail price dropping from 1.35 million won to 1.25 million won and KT increasing the maximum discount to 600,000 won.

The Galaxy models aren't the only ones with prices plummeting.

The maximum discount offered for Apple’s iPhone 12 has been increased to 430,000 won from 229,000 won, according to LG U+.

The move follows SK Telecom’s decision to increase its discount on the latest iPhone to 420,000 won and Galaxy S20 Ultra to 580,000 won.

Some retail branches of the telecom operators go even further to entice subscribers by providing additional discounts, which is technically illegal.

The desperate push to sell leftover stock comes as Samsung Electronics is expected to release its flagship smartphone a month earlier than usual, potentially reducing the appeal of the older smartphone models.

Roh Tae-mun, Samsung Electronics' mobile communications business chief, signaled earlier this month that a new Galaxy will come out in January next year.

He also hinted that the model will come with a stylus pen, a feature that has so far been reserved for the Galaxy Note series.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]