After the Galaxy S5 was launched early in South Korea, it seems Samsung has followed up with a 10 percent price cut on its latest flagship in order to increase sales of the handset. According to a report published by Reuters, Samsung (and Apple) is under pressure to make its high-end phones more affordable as the high-end smartphone market is beginning to saturate. According to IBK Securities analyst Lee Seung-woo, the price cut “reflects how much Samsung is agonizing to secure margins. They’re now offering premium models at lower prices as the demand outlook for high-end phones remains uncertain.”
It’s unclear if a similar price cut will be seen in other markets after the Galaxy S5 launches globally on April 11, but at least in South Korea, it looks like consumers now have the option to grab one of the best smartphones available today for a lower price unexpectedly soon after it went up for sale. It’s a clear sign that interest in high-end handsets might not be translating that well into sales anymore, and it will hopefully drive Samsung to start focusing on the mid-tier and produce value-for-money devices like Motorola’s Moto G.
