Korea’s three major telecom companies including SK Telecom, KT, and LG U+ are stepping up their low-cost smartphone strategies.
Since the passage of the Handset Retail Structure Improvement Act which put restraints on the amount of subsidies the telecom companies offer to their new customers, the share of high-priced smartphones in overall smartphone sales declined, driving local telecom companies toward strengthening the marketing of low-cost models.
Just one year ago, local consumers showed not much interest in low-cost smartphones. The situation, however, reversed this year, with the share of budget smartphones in overall smartphone sales rising to 34 percent during the July-September period of this year, up from 21.5 percent a year ago.
LG U+ recently showcased an ultra-low-cost smartphone with a market price of less than 200,000 won, drawing hot attention from consumers.
This smartphone is the Y6, made by China’s Huawei, which has the retail price of 154,000 won, the cheapest among the smartphones released so far here in Korea. For those who purchase an Y6, LG U+ is extending an ample amount of subsidies. The Y6 enables users to enjoy smartphone calls, as well as 070 Internet calls.
