Smartphone Discounting
We have been seeing a great deal of advertising in the trade press concerning ‘the best prices ever on Samsung (005930.KS) Smartphones’, and as with TVs, we were curious as to the validity of such claims. Samsung does have a large number of smartphone models that tend to be broken down into three tiers, so we went to our data sources to see if we could get some understanding as to why there was so much ‘discounting’ and exactly how much. The data for smartphones is as complex as that for TVs, with an almost infinite number of variations ranging from local/international editions (which are very different), memory, and even color, all of which can influence price, and just pulling current prices from the Samsung site doesn’t really give an indication of the day-to-day pricing that consumers face. In this case our data comes from Amazon (AMZN) and a variety of 3rd Party sources and is far more realistic than the list price Samsung offers.
Of the top 25 Samsung models (2020/2021), we were able to get accurate data on nine models. In some cases new smartphones did not have Amazon pricing data or even Samsung pricing, and there were some instances where Amazon ‘best’ pricing was higher than prices from other vendors, even on Amazon (excluding shipping). But in general the data indicated that overall prices on high-tier Samsung smartphones are trending down (Fig.2), mid-tier smartphone pricing is mixed (Fig. 3), and Low-tier smartphone pricing is flat to down slightly. As to whether there is really any substantial discounting, other than unusual models or very limited “only 1 left” offers, the average price reduction from early March prices to current prices was -4.1% and including one-offs was only -5.2%. This would indicate that the discounting is no more than what would be normal to move certain inventory models and is not an ‘across-the-board’ reduction in Samsung smartphone pricing.
We do note that Samsung does offer discounts on various models if the buyer has a trade-in and/or selects a new carrier plan, and can be substantial if the trade-in phone is a relatively new high-end model. Samsung offers up to $700 for high-end models and even $550 for same with a cracked screen but trade-in prices go down quickly if your phone is older than 2020. For example the Note 20 is worth $700 while the previous year’s model, the Note 10 is worth $550 and the Note 9, $350, and they need to be in tip-top condition or they can be excluded or further reduced in value.
Since we have accumulated the data, we will take another reading next month after Samsung’s new models begin to take hold, to see if that has any effect on existing model prices. Small panel display pricing has been the least affected by COVID-19 demand changes, especially relative to TV panel prices but component shortages might increase smartphone panel prices more aggressively, at least for new models going forward. Until we see new data, Caveat Emptor.
Of the top 25 Samsung models (2020/2021), we were able to get accurate data on nine models. In some cases new smartphones did not have Amazon pricing data or even Samsung pricing, and there were some instances where Amazon ‘best’ pricing was higher than prices from other vendors, even on Amazon (excluding shipping). But in general the data indicated that overall prices on high-tier Samsung smartphones are trending down (Fig.2), mid-tier smartphone pricing is mixed (Fig. 3), and Low-tier smartphone pricing is flat to down slightly. As to whether there is really any substantial discounting, other than unusual models or very limited “only 1 left” offers, the average price reduction from early March prices to current prices was -4.1% and including one-offs was only -5.2%. This would indicate that the discounting is no more than what would be normal to move certain inventory models and is not an ‘across-the-board’ reduction in Samsung smartphone pricing.
We do note that Samsung does offer discounts on various models if the buyer has a trade-in and/or selects a new carrier plan, and can be substantial if the trade-in phone is a relatively new high-end model. Samsung offers up to $700 for high-end models and even $550 for same with a cracked screen but trade-in prices go down quickly if your phone is older than 2020. For example the Note 20 is worth $700 while the previous year’s model, the Note 10 is worth $550 and the Note 9, $350, and they need to be in tip-top condition or they can be excluded or further reduced in value.
Since we have accumulated the data, we will take another reading next month after Samsung’s new models begin to take hold, to see if that has any effect on existing model prices. Small panel display pricing has been the least affected by COVID-19 demand changes, especially relative to TV panel prices but component shortages might increase smartphone panel prices more aggressively, at least for new models going forward. Until we see new data, Caveat Emptor.
Samsung Smartphone Pricing - Amazon & 3rd Party - Source: SCMR LLC, Amazon
Samsung Smartphone Pricing - Amazon & 3rd Party Top Tier - - Source: SCMR LLC, Amazon
Samsung Smartphone Pricing - Amazon & 3rd Party - Mid-Tier - Source: SCMR LLC, Amazon
Samsung Smartphone Pricing - Amazon & 3rd Party - Low-Tier - Source: SCMR LLC, Amazon
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