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Note 7 hits shelf with high expectations

이름 임서영 등록일 16.08.21 조회수 631

Customers queue up at an SK Telecom handset outlet in Gangnam, southern Seoul, to get SamsungElectronics' new large-screen smartphone Galaxy Note 7, Friday. / Yonhap
By Yoon Sung-won

Samsung Electronics rolled out its Galaxy Note 7 in 10 countries including Korea and the United States, Friday.

The world’s largest smartphone maker has received presale orders for Note 7 since it unveiled the device in New York on Aug. 5. Since then, the company began an aggressive marketing drive by offering its new smart bandGear Fit 2.” It has already drawn more than 400,000 presale orders in the domestic market alone between Aug. 6 and 18.

Expectations are high that the shipments of Note 7 will exceed Note 5s by 8.65 million.

Reflecting the anticipation over the new handset, customers crowded the company’s mobile stores. But most of them could not buy a Note 7 due to the shortage of products.

“I think those who did not make a presale order will likely be able to get a Note 7 after the first week of September at the earliest,” an official at Samsung Mobile Store said, Friday. “In particular, it is even more difficult to secure a supply of products with the Blue Coral color because of its popularity. So those who want this color may have to wait longer.”

A Note 7 was priced at 988,900 won ($885) in Korea. This is the lowest price among the 10 countries. In the United States and European nations such as Germany, France, Spain and the United Kingdom, the price exceeds 1 million won once tax included. This contrasts to the past when the company used to sell its smartphones at cheaper prices in larger global markets such as the U.S.

We have set the price based on the price levels in each region. The price of Note 7 is the lowest in the domestic market and relatively higher in the European regions,” a source from Samsung Electronics said.

The Note 7 is the sixth model of the company’s large-screen smartphone brand. Behind the 5.7-inch screen, the new handset has an iris scanner and an enhanced digital pen. Like its sibling models with smaller screens ― Galaxy S7 and S7 edge, the Note 7 adopted the IP68-grade waterproof and dustproof functions and thus can survive for about 30 minutes underwater. In addition, the digital pen has also been redesigned to be waterproof and customers can use the pen to control the device in rain or underwater.

The storage capacity options have been unified to 64 gigabytes. Among the four color options unveiled ― silver, gold, light blue and black ― the black model will be released later, the company said.

SK Telecom, KT and LG Uplus have put up their respective subsidy benefits for the Note 7 to draw subscribers. While LG Uplus is offering 264,000 won for its subsidy, which is the biggest amount, SK Telecom and KT are providing 248,000 won and 247,000 won, respectively.

However, expectations are that more customers will choose a 20 percent discount benefit for a subscription contract because they can get greater benefits this way. Under the current Telecom Act in Korea, consumers who sign up for a subscription contract with a certain mobile carrier when they buy a handset can choose from an instant discount for the handset or a 20 percent discount for their monthly subscription fee during the contract period.

For instance, a customer who buys a Note 7 under a 24-month subscription contract with a monthly plan priced at 60,000 won can save about 320,000 won on monthly fees whereas the discount for a handset will be around 160,000 won.

Meanwhile, Samsung Electronics launched the new version of its head-mount virtual reality (VR) deviceGear VR,” Friday. The new model has the type-c universal serial bus port, which is compatible with the Note 7, and has a wider viewing angle. The new Gear VR is priced at 129,800 won.

Samsung Electronics closed at 1,675,000 won on the Seoul bourse, Friday, up 2.13 percent from the previous day, and broke the highest price for the second consecutive day on expectations over Note 7’s sales performance.

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