Apple has, for the first time, included South Korea in the initial wave of countries for the iPhone 16 series launch. In response, Samsung Electronics has raised its alert level and decided to offer unprecedented discounts on its foldable smartphones in Apple's "home turf," the United States. The smartphone war for the second half of 2024 has officially begun.
According to Korean media outlets such as SBS Biz, Apple recently unveiled its new iPhone 16 series, featuring AI capabilities for the first time. However, under the strategy of "more features, no price increase," the prices of the iPhone 16 series remain similar to the previous generation, causing pricing dilemmas for competitors like Samsung.
What caught the South Korean industry's attention the most this time is that South Korea has been included in the initial wave of countries to receive the iPhone 16 series at launch. Pre-orders will begin on September 13, with the official release on September 20. South Korean consumers won't have to wait an extra month to get new products like in the past.
Industry sources believe Apple's decision was influenced by concerns that the "patriotic consumption" trend in China could lead to lower sales of the new iPhones there, thus shifting its focus to South Korean Apple fans. Furthermore, South Korea's iPhone sales, which range between 3 to 4 million units, make it an ideal market to test Apple's new AI service, Apple Intelligence.
Samsung, unwilling to be outdone, has reportedly decided to launch unprecedented discounts in the United States. For example, through a trade-in promotion with the Galaxy Z Fold 5, consumers can buy the Galaxy Z Fold 6 at one-third of the regular price.
Likewise, for the Galaxy Z Flip 6, consumers can purchase it for less than US$500 through a similar promotional offer. In South Korea, Samsung is also cutting the prices of its foldable smartphones, with the country's three major telecom providers recently increasing purchase subsidies for the Galaxy Z Fold 6.
As the competition between Samsung and Apple in the AI smartphone market heats up, Samsung's aggressive price-cutting strategy is undoubtedly a marketing tactic aimed at increasing brand awareness and defending its market share.
According to data from Counterpoint Research, Apple ranked second in South Korea's smartphone market share in 2023 (25%), an increase of 3 pp compared to 2022. Apple's smartphones are particularly popular with consumers in their 20s and 30s. Samsung, meanwhile, maintained its dominant position in the South Korean market with a 73% share.
