iPhone Subsidies Hit Record High as Samsung Galaxy 25 Launch Looms | Be Korea-savvy

iPhone Subsidies Hit Record High as Samsung Galaxy 25 Launch Looms


iPhone 16 series (Image courtesy of Yonhap)

iPhone 16 series (Image courtesy of Yonhap)

SEOUL, Jan. 14 (Korea Bizwire) — A notable shift in South Korea’s mobile phone market has seen carriers KT and LG Uplus significantly increase subsidies for the iPhone 16 series, influenced by the upcoming release of Samsung’s Galaxy S25 and the abolition of the Mobile Device Distribution Act.

Some premium plan subscribers can now obtain even the Pro models essentially for free, sparking concerns about a return to the era of “bus phones” – devices so heavily discounted they were practically given away.

KT has raised its maximum subsidy for the base iPhone 16 and iPhone 16 Plus models from 450,000 won to 550,000 won, representing a 100,000 won increase.

For the base iPhone 16, customers can now purchase the device for 610,500 won after including additional retailer subsidies of 82,500 won – roughly half of its original 1.24 million won price tag. The iPhone 16 Plus 128GB model’s price has dropped to 709,500 won from its initial 1.34 million won. 

The subsidy increase marks a significant change from September 2023, when the iPhone 16 series launched with maximum carrier subsidies of just 240,000 won at KT. This amount was raised to 450,000 won in November, before reaching the current 550,000 won just two months later. Notably, KT has extended the 550,000 won subsidy to the iPhone 16 Plus model.

LG Uplus led the subsidy race, becoming the first among the three major carriers to increase iPhone 16 base model subsidies to 550,000 won on December 21. While the subsidy competition has now spread to KT, SK Telecom continues to maintain its maximum subsidy at 450,000 won. 

The Yoon Suk Yeol administration’s decision to abolish the Mobile Device Distribution Act last year has contributed to this trend. The combination of increased carrier subsidies and contract discounts has effectively made the iPhone 16 free at certain online retailers. 

Industry observers suggest this surge in iPhone subsidies is a strategic move to maximize sales before Samsung’s Galaxy S25 launch. Samsung Electronics is scheduled to begin pre-orders for the Galaxy S25 on January 24.

Kevin Lee (kevinlee@koreabizwire.com) 

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