- Tram Ho
The Galaxy S20 trio has just been announced by Samsung in Vietnam on February 19 with prices of VND 21.5, 24 and 30 million respectively. At this price, the Galaxy S20 breaks the previous men’s records to become Samsung’s most expensive flagship ever.
Last year, Samsung’s most advanced model, the Galaxy S10 +, was priced at VND 23 million. This year, Galaxy S20 + cost more than 1 million VND 24 million, but this is still not the most advanced model. That title belongs to Galaxy S20 Ultra – 30 million.
Samsung continues to reduce prices for the Galaxy S20, though it has not been sold yet
As noted from us, from 24/2, retailers in Vietnam simultaneously announced announcements will reduce an additional 2 million for all Galaxy S20 models. Specifically, Galaxy S20, Galaxy S20 + and Galaxy S20 Ultra will cost 19.5, 22 and 28 million, respectively. This price still includes gifts of Samsung and dealers (such as Galaxy Buds +, leather case, business lounge …). This offer is valid for all Galaxy S20 deposit users until March 5.
Retailers simultaneously reduced the price of 2 million for the S20 series from February 24
In essence, users only have to spend 19.5 / 22/28 million to own the S20 series, but the listed price of this machine remains at 21.5 / 24/30 million. This is Samsung’s measure to protect “advanced” image of Galaxy S series.
In some agencies with the “loosen” policy, users may not even get gifts to get a better price. The exchange price for Galaxy S20 gifts is in the range of 3 million VND, depending on the model, redemption gifts and some other factors. Similarly, in order to preserve the price of products, Samsung Vietnam does not allow retailers to publish this conversion rate, forcing users to confer individually with retailers via hotlines or private messages.
The lower-than-expected sales made Samsung forced to reduce prices
According to the natural law of the market, if a product is selling well, there is no reason that the price of that product must be reduced. Therefore, the fact that Samsung reduced the price of the Galaxy S20 when it was still not available to users shows that this model is having sales problems.
Retailer order figures clearly reflect this. Last year, in less than a month of ordering the Galaxy S10 (February 11 – August 3, 2019), Samsung received 45,000 orders for the device. Up to now, it has been nearly 1 month since Samsung started launching the Galaxy S20 brick-laying program in Vietnam (February 1), however, according to the data we collected, the number of applications The new order is only 10,000 – significantly lower than what the Galaxy S10 can do.
The high price is said to be the main reason why users are not excited about the Galaxy S20. Although Samsung is a big name in the market and Vietnamese people are willing to pay for smartphones, the amount of up to 30 million for an Android smartphone still makes many people feel uncomfortable.
After nearly a month of starting the Order Program, the largest retailer in Vietnam, TGDD received nearly 2,200 orders and nearly 1,500 deposits, significantly lower than the previous generation Galaxy S10.
This is also the reason that Samsung rushed to lower the price of the Galaxy S20, just a few days after it announced a record high price for its product.
The discount of Samsung Galaxy S20 before it was launched is an unprecedented move by the Korean giant. However, this is considered a measure of Samsung to avoid “catastrophic” happened with the Galaxy S9 two years ago. At the time of the Galaxy S9 launch, Samsung was also confident of raising the price of this product compared to the previous S8 generation, only to fail when the sales level was also lower.
Samsung doesn’t want the Galaxy S9’s failure to repeat itself with the Galaxy S20
Galaxy S20 will officially hit shelves on March 6 in Vietnam. Are changes in Samsung’s pricing strategy enough to revive the sales of this new flagship trio? We will know the result in less than 2 weeks.
Source : Genk