Given that Samsung, together with Apple, has a dominant presence in the global smartphone market, its price reduction would increase pressure on other smartphone companies to follow suit.
Some industry experts said, “If Samsung releases Galaxy S5 at a price lower than Galaxy S4, its rivals may have to reset their strategies from product development to marketing.”
The main specs of Galaxy S5, which Samsung revealed on February 25, showed no specific improvements compared to its predecessor model. The only difference was the 16-megapixel camera.
Accordingly, rumors are rampant that the retail price of Galaxy S5 would range between 800,000 won and 850,000 won, far lower than Galaxy S4’s 950,000 won.Samsung is reviewing the idea of lowering the retail price, based on a market analysis that the premium smartphone market has reached a saturation point, while the mid-priced smartphone market is fast expanding.