According to industry sources on Oct. 19, LG Electronics' new model is in the price range of 400,000 to 600,000 won (US$377 to US$566). The actual price is likely to be lower than 300,000 won (US$283) if mobile phone subsidies provided by mobile carriers are taken into account.
Samsung Electronics is also reportedly planning to roll out mid- to low-range phones early next year, and feature phones within the year. Considering that the launch price of the Samsung Master released in May of last year was around 200,000 won (US$188), new feature phones are expected to be in a similar price range.
The reason for the two Android phone makers' decision to introduce mid- to low-cost models lies in a drastic drop in the sale of smartphones, since it is more expensive to buy smartphones after the act on improving the distribution channel structure of cellphones was put into effect in Oct. 1.
According to the Kore Telecommunications Operations Association, an average of 5,000 people subscribed to used phones per day from Oct. 1 to 14, a 77.9 percent month-on-month increase from 2,900 people. An increase in subscribers is due to the fact that previously-unpopular foreign-made phones and used phones are now drawing a lot of attention after the implementation of the law.