A price competition is usually one fine thing for customers who benefit from low prices for Galaxy S8 in Europe. From a certain point, however, such a price war will be unhealthy for competition and competitors – for example when the new Galaxy S8 is sold for less than 160 euros. This is how it happened in South Korea. Problem: Such a drastic undercutting is illegal there.
It is a common practice to boost sales with additional discounts and promotions to the market launch of a long-earned product. This is so in Europe, which is so in the USA and that is so in South Korea. There, however, the whole thing is still up-to-date: Some distributors offer the Galaxy S8, currently the most popular smartphone on the South Korean market, already converted to fewer than 160 euros. In Europe, it changes only about 750 Euro for the comparison.
Samsung Galaxy S8 in Europe in the illegal price war: officials on vacation
The companies are therefore taking significant losses to undercut the competition with subsidized prices. This is market-damaging and in South Korea in the form therefore also forbidden. The legislator provides for smartphone sales that a maximum of 15 percent of the purchase price may be subsidized. In South Korea, Samsung recommends a selling price of 935,000 South Korean Won, circulated around 750 euros. This means that the price will fall there at the very most to 640 euros – everything else is illegal.
In recent days, however, the price of most online stores and offshoots ranged from 400 to 480 euros. In the meantime, some sellers even went down to 160 euros. As South Korean newspapers report, traders use the current standby phase of the responsible supervisory authority. Between May 1 (Labor Day) and the presidential election on Tuesday, South Korea is an unofficial holiday. In addition, the term of office of the magistrate ended in April, and the appointment of a successor is not to be expected until after the election.
In Europe, the Galaxy S7 remains the best alternative
The Galaxy S8 in Europe is still a costly smartphone despite all the promotions. Not without reason, many customers are reaching for the much cheaper Galaxy S7, which is still an excellent smartphone.
It can be assumed that the illegal price competition will have some consequences. It is questionable whether this has paid off for all involved dealers. However, the traders would probably have lost considerable clientele if they had not matched the competition.