South Korea’s tech giant Samsung Electronics Co. Friday started taking preorders for its new flagship Galaxy S8 smartphones pinning high hopes that the latest handheld innovation that follows the ill-fated Galaxy Note7 will be its best-yet performer.

The new handset, which will be officially available from April 21, is priced at 935,000 won ($823.7) but it can be purchased as low as 630,000 won when adding subsidies provided by mobile carriers and additional discounts by retailers. Consumers that choose not to receive handset subsidies can receive a 20 percent discount from the full price if they choose a fixed-term plan with a mobile carrier. Industry insiders note that receiving the discount is ¡°more rational¡± than receiving subsidies from mobile companies.

Among Korea’s top three wireless carriers - SK Telecom Co., KT Corp., and LG Uplus Corp. - LG Uplus offers the highest subsidy to Galaxy S8 buyers of in between 79,000 won and 264,000 won depending on the mobile tariff.

Subsidies offered by KT are between 75,000 won and 247,000 won while those of SK Telecom 65,000 won and 237,000 won. Consumers that choose a monthly tariff of over 100,000 won are likely to receive more subsidy support from the three carriers.

Considering that a 60,000 won-something mobile plan is most common among Korean consumers, the subsidy offered by SK Telecom would amount to 155,250 won including additional discounts offered by retail outlets while that of KT 198,375 won and LG Uplus 181,700 won.

Rather than receiving subsidies, however, industry insiders say consumers would benefit more if they go with a fixed contract term with a mobile company and receive a 20 percent discount. Consumers can buy the Galaxy S8 up to 528,000 won cheaper if they sign up for a two-year fixed contract with a mobile carrier, which is 200,000 won more than the highest discount from subsidy. Consumers with a 60,000 won range mobile tariff will receive 316,800 won discount from SK Telecom and KT while 316,272 won from LG Uplus - higher than discounts of in between 150,000 won and 190,000 won from subsidies.

In general, a consumer with a cheaper monthly tariff would receive smaller discount on a mobile handset but for the Galaxy S8, the discount is higher than the subsidies offered by mobile carriers regardless of the monthly tariff amount.

By Cho Hee-young

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