Rushed to Buy After Prices Rose... but Instead, "We'll Give You 100,000 Won Back"? What's Going on at This Phone Hotspot?

Galaxy S26 Series List Prices Rose This Month, but Consumers Barely Feel the Increase
Thanks to Various Subsidies at Retail Stores

Prices for Samsung Electronics' Galaxy S26 series were raised this month due to a memory semiconductor supply shortage, but mobile carrier dealerships and retailers are still easing the burden on consumers by selling the phones at pre-increase prices or offering cash-back payments known as "paybacks."

According to the mobile telecommunications industry on October 8, a mobile phone retailer in Sindorim, Guro-gu, Seoul, is offering a 120,000 won payback to existing KT subscribers who purchase the standard Galaxy S26 model by upgrading their device while staying with KT. The store, which has earned a reputation online as a so-called "holy site" for selling phones at low prices, offers a 100,000 won payback for upgrading the same device with LG Uplus and a 50,000 won price for upgrades with SK Telecom. These offers, however, require customers to keep a high-priced plan costing 100,000 won for six months and use additional services as well.

Given that the Galaxy S26's retail price before the increase was 1,254,000 won, the sales subsidies alone amount to about 1.37 million won. Subsidies available when purchasing a phone consist of standard subsidies provided by the carrier and additional subsidies provided by each retailer. For the Galaxy S26, KT offers a standard subsidy of 600,000 won for customers who sign up through a device upgrade. When the retailer's additional subsidy is added, the total sales subsidies exceed the price of the device. The excess is paid to buyers in cash as a payback.

Galaxy S26 Series. Samsung Electronics

Most retailers, including the three mobile carriers' official dealerships, are also selling the S26 series based on prices from before the retail price increase. An industry official said, "Inventory of the Galaxy S26 series secured before the retail price increase is being sold at the pre-increase prices," adding, "Once that inventory is depleted, the phones will be sold at the higher prices."

With consumers switching carriers less often even amid the launch of new iPhones in the second half of the year, a peak season for the telecommunications industry, carriers appear to be actively using sales subsidies to encourage consumers to make the switch.

According to the Korea Telecommunications Operators Association (KTOA), 596,599 subscribers switched carriers in September, down 12.3% (83,747 subscribers) from 680,346 in August. This was also a 7.3% decrease (47,276 subscribers) from September last year. Apple launched the iPhone 18 Pro series in South Korea on September 18, but the number of carrier switches fell year over year. Demand was absorbed by the Galaxy Z Fold8, which set a record for advance orders, creating a base effect. Demand was also divided after Apple's first foldable smartphone, the "iPhone Duo," launched in October.

Efforts to prevent manufacturers' smartphone price increases from being passed on to consumers are also aimed at clearing inventory before the Galaxy S27 launches early next year. The S26 series launched in March this year and has been on the market for more than six months. In the second half of the year, sales have centered on new foldable models launched in August, including the Galaxy Z Fold8, Fold8 Ultra and Flip8, leaving the S26 series relatively less in the spotlight.

Meanwhile, as "chipflation" continues, with memory semiconductor prices rising amid a surge in demand driven by artificial intelligence (AI), Samsung Electronics has raised the retail prices of all Galaxy S26 series models starting this month. The prices of the 256-gigabyte (GB) storage models of the Galaxy S26, S26 Plus and S26 Ultra each increased by 149,600 won. The 1-terabyte (TB) Galaxy S26 Ultra model, which has greater storage capacity, rose by 276,100 won, a larger increase.

This content was produced with the assistance of AI translation services.