South Korea’s major telecom operators, SK Telecom, KT, and LG Uplus, are rolling out exclusive phones available only through their stores. Insider sources reveal discussions on featuring Samsung Electronics’ Galaxy A series as exclusive devices, along with plans for Samsung’s Quantum 5, Jump 4, and Buddy 3 in the upcoming year.
These exclusive phones will be tied to specific telecom providers, emphasizing collaboration between the telecom companies and device manufacturers. The Galaxy A series, initially known for affordability, is expected to be the focal point of this strategy to attract more subscribers.
Exclusive phones, in this context, are devices only available through a particular telecom provider. This approach involves close cooperation between the telecom company and the device manufacturer, allowing the former to set prices and specifications. Notably, certain Galaxy A models, such as KT’s Galaxy Jump and SK Telecom’s Galaxy Quantum, fall into this category.
KT’s recent success with the Galaxy Jump 3, priced around 400,000 won, indicates a renewed interest in exclusive phones. Annual sales figures typically range between 500,000 to 1 million units.
KT and SK Telecom officials emphasize the need to expand their exclusive phone offerings, driven by the growing demand for devices like the Galaxy Jump series. They see exclusive phones as a way to enhance consumer loyalty and satisfaction.
Unlike its counterparts, LG Uplus has chosen not to release exclusive phones in 2023, citing the delay in launching the Galaxy Buddy 3 due to lower sales of its predecessor, the Galaxy Buddy 2. LG Uplus maintains a commitment to exclusive phones, with the fate of the Buddy series or potential new products yet to be determined.
Meanwhile, most exclusive phones are priced below 500,000 won, aligning with the government’s goal to reduce household communication costs. The industry initially explored Chinese budget phones, but consumer preference has shifted towards Samsung Galaxy phones. The release of the Xiaomi Redmi Note 12 series earlier this year through SK Telecom and LG Uplus had a modest reception, with total sales falling below 300,000 units.
