That is what is being claimed in the below article to explain the reduction in subsidies that all the cell phone carriers in South Korea implemented for the release of the new iPhone 6S which has increased the overall cost of the smartphone:
Prospective buyers of iPhone 6s line up in front of the KT headquarters in Gwanghwamun, central Seoul, on Friday. The increased cost of the new phones wasn’t enough to deter these anxious buyers who lined up for the latest Apple release. [KANG JUNG-HYUN]Apple’s latest iPhone 6s made headlines earlier this week when preorder sales sold out in a record seven minutes. But the smartphone and the larger iPhone 6s Plus are being sold with a subsidy that is roughly 40 percent less than the previous model that went on sale a year ago.
The new phones are also 20,000 won ($18) to 30,000 won more expensive than the earlier release.
The nation’s three mobile carriers – SK Telecom, KT and LG U+ – unveiled on Friday the subsidies and price of the latest Apple smartphones as they started official in-store sales of the iPhone 6s and iPhone 6s Plus.
The mobile carriers set the maximum subsidies on both models between 120,000 won and 130,000 won – much less than the subsidy provided on the iPhone 6 last year, which was in the 100,000 won to 200,000 won range. In the case of KT, the maximum subsidy it provided on the iPhone 6 last year was 250,000 won.
The slashed subsidies went against earlier market expectations of substantial subsidies on Apple’s new smartphones due to keen competition among mobile carriers to hijack one another’s customers.
Mobile carriers and the Korean manufacturer gave different answers for reasons why subsidies have been slashed almost in half.
“It was largely the result of Samsung Electronics’ influence to keep Apple in check,” said a mobile carrier official, who requested anonymity due to the sensitivity of the issue.
The mobile carriers said the Korean smartphone maker made an unofficial request to limit the subsidies on iPhones, and the mobile carriers can’t refuse because Samsung Electronics is the biggest smartphone supplier. [Joong Ang Ilbo]
