When it comes to subsidizing the price of handsets, folks in America have it good because some handsets come at zero cost as long as the subscriber is willing to sign onto a new contract with their carrier. However is there a particular brand that gets subsidized the most? According to a research done by ABI Research (via BGR), it has been found that Samsung phones are the ones that receive the most subsidies when compared to their competitors, such as Apple and HTC. This is apparently done so that even if some of their phones might not necessarily beat out their competitors in terms of hardware or features, they will be able to compete on price.
The results of their study have found that on average, Samsung’s products are subsidized at 84%, while Apple and HTC sit at 74% and 80% respectiovely. According to ABI Research’s chief research officer, Stuart Carlaw, “Samsung continues to squeeze its competitors at every turn […] The Samsung Galaxy SIV is now considered on a par with Apple’s iPhone 5. Coupled with better subsidy, the breadth of its device portfolio, increasingly savvy marketing, and its excellence in channel execution, it is little wonder Samsung is dominating the mobile handset market from top to bottom.” Do you guys agree with Carlaw’s assessment? Is price one of the ways Samsung is dominating the market?
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