When it comes to smartphones, it is without doubt that Apple’s smartphones tend to be the priciest, if not somewhere at the top of the range. This is compared to other devices from Samsung where their high-end devices are pricey, but at the same time not as pricey compared to iPhones. According to an ABI Research report that surfaced earlier this year, it is because the average US subsidy for Samsung devices is set at 84%, whilst Apple’s subsidies are at 74%, a good 10% less. Subsidies are a great way for companies to keep their products competitive, with Samsung admitting that without their higher subsidies, their global business would suffer.
This was revealed by Samsung’s CFO, Lee Sang-hoon, who was quoted as saying, “Samsung can’t unveil internal data such as the amount of subsidies given to carriers, the factory price of each Samsung device and sales figures. Even if a new law takes effect, we can’t release key internal data. Samsung believes the government will protect us. If such key data is leaked, then that will seriously hurt our global business.” This is in response to the South Korean government who is attempting to introduce a “subsidy law” to fight against companies who might be over-subsidizing.