Priced Highest in the World
The price of the iPhone X, the highly anticipated 10th anniversary phone from Apple, in South Korea is set at some 1.6 million won (US$1,435) for a 256GB model,
According to Apple Korea on November 1, the 5.8-inch phone’s price is set at 1.42 million won (US$1,274) for a standard 64-gigabyte model and 1.63 million won (US$1,462) for a 256GB model. It is the most expensive smartphone on the market up to date, except for special edition products for a particular class like Lamborghini Phone with a price tag of 2.7 million won (US$2,422).
The iPhone X has lower specifications for some components, including RAM, than Samsung Electronics’ Galaxy Note 8. However, its price is 325,500 won (US$292) and 400,000 won (US$359) higher for a 64GB model and a 256GB model, respectively, compared to the Galaxy Note 8 which is sold at 1.09 million won (US$982) for a 64GB model and 1.25 million won (US$1,121) for a 256GB model. The price is equivalent to two of a 32GM LG G6 priced at 819,500 won (US$735). By country, the price of a 256GB iPhone X in South Korea is 360,000 won (US$323) more expensive than that in Japan and 350,000 won (US$314) more expensive than that in the U.S. The iPhone X will be sold at the highest price in South Korea compared to any other countries around the world.
Industry watchers are paying attention to how many loyal customers will open their purse to buy the iPhone X. Consumers have seen “1 million won (US$897)” as their psychological Maginot Line for a smartphone. However, a 128GB Galaxy S8 gained huge popularity in the first half of this year despite its high price of 1.15 million won (US$1,036), incapacitating the psychological Maginot Line. The Galaxy Note 8 is also recording at the highest-ever pre-sales largely due to a 25 percent service fee discount that consumers can get instead of subsidy. The price of the Galaxy Note 8 reachnes 1.25 million won (US$1,121) but its actual purchase price gets lower than 1 million won (US$897) as consumers can get a discount by 390,000 won (US$350) to 460,000 won (US$413) for two years when they subscribe to the most popular calling plan worth 60,000 won to 70,000 won (US$54 to 63).
The iPhone X has become more expensive but it is highly likely to get a mere subsidy. The subsidy of the iPhone 8, which began pre-sale on October 27, is set at some 100,000 won (US$90) even when subscribing to the most expensive calling plan. Its actual purchase price far surpasses 1 million won (US$897) when consumers chooses a 25 percent service fee discount which is more favorable than subsidy. Consumers from SK Telecom still need to pay 1174,000 won (US$1,053) even when they buy a 256GB model and get some 70,000 won (US$63) calling plans for two years.
An official from the industry said, “I don’t understand why the price of the iPhone X is set so high compared to specifications of Samsung Electronics’ phones. I don’t know whether Apple trust the purchasing power of fixed demand in South Korea too much or is trying to strengthen its premium strategy by raising the price. Another official also said, “Apple customers can purchase the iPhone X instead of the iPhone 8 as it is the company’s 10th anniversary phone. However, the high price of 1.6 million won (US$1,435), which is equivalent to its laptop Apple MacBook, can become an obstacle to sales.”
Meanwhile, the iPhone X was supposed to be released as early as the end of next month in South Korea being on the third list of countries for launch but the release can be delayed to early next year owing to lack of supply of core components.