Report: Galaxy S22 Sales Plunge Due to GOS Scandal, Carrier Subsidies Increased on Counter

It seems that the GOS scandal has seriously tarnished the image of the Galaxy S22 series in South Korea. The Korea Times reports that Samsung’s carrier partners had to significantly increase subsidies to prevent a drop in revenue.

KT and LG Uplus are now offering subsidies of KRW 450,000 ($370/€335) for the Galaxy S21 and KRW 500,000 ($410/€375) for the Galaxy S22+ with select plans (over KRW 90,000 for KT and KRW 85,000 for LG). The Galaxy S22 Ultra has already received KRW 500.00 in subsidies since last month.

For comparison, the initial subsidy amount was KRW 150,000, a third of the current amount. The change in subsidies was agreed between Samsung and the network operators.

The Samsung Galaxy S22 trio
The Samsung Galaxy S22 trio

While GOS (throttling in select games and apps) is blamed for the drop in demand, a representative of an anonymous network operator doesn’t see it that way:

“There is a view that the GOS issue is negatively affecting sales of the S22, but there is no clear decline in terms of sales volume. There is a demand for devices not only from those who play games but also from those who do not play games. There has been controversy over the GOS, but there are two high-end smartphone brands – Samsung’s Galaxy S series and Apple’s iPhone – so we don’t see a clear decline in sales of the Galaxy devices.”

An analyst from Eugene Investment & Securities is forecasting first-quarter operating profit for Samsung’s mobile device business to reach KRW 4 trillion, an increase of KRW 1.3 trillion compared to the last three months of 2021. However, the analyst does not believe the statement the airline , and believes that the GOS scandal “left a big scar on the credibility of the Galaxy and Samsung brands”.

source Report: Galaxy S22 Sales Plunge Due to GOS Scandal, Carrier Subsidies Increased on Counter

Tom Vazquez

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