Did you know Samsung slashed the price of its Galaxy S4 by a third in just 9 months?
Samsung reacted swiftly. It used an aggressive pricing strategy, lowering the cost of the device gradually to lure more buyers in. Now, more than 9 months since the device launched in spring 2013, the stats are in and they reveal that the price of the S4 dropped a whopping 33%. The table below comes from Russian Mobile Research Group, but similar price tactics were in place in other markets as well.
This might not seem all that shocking - after all, it’s only logical for a phone to lose some of its value over time, but this fact becomes interesting when you think that devices in the other, Apple camp, actually lose very little and often none of their value for about a full year. The iPhone 5s has not dropped a penny in price in the 5 months since it rolled out (we don’t count limited time deals), and its prices still start from $650.
We leave it up to you to draw conclusions from all this, but we ought to mention that it seems that getting an older Samsung phone like the Galaxy S4 right now seems to make way more financial sense than getting an iPhone, don’t you think?
source: Mobile-Review (translated)
1. Mxyzptlk (Posts: 5933; Member since: 21 Apr 2012)
The S3 was their peak. Now they're canobalizing themselves with 100 different variations of the S4. Add in poor build quality, weak radios, and a bloated ui then you'll see why they're sales are falling.
7. Reluctant_Human (Posts: 872; Member since: 28 Jun 2012)
Usually I don't agree with you Mxy but you are 100% right. This also hurts Samsung resale value something iproducts excel at. Samsung needs to start rethinking their strategy before they run themselves into the ground.
Samsung needs to focus their product line a little more and just give more options with the same phone. For example, a touchwiz and non-touchwiz edition for each device.
33. HansGoneInsane (unregistered)
Samsung's business strategy is fine and totally legit. As in all other product categories Samsung is competing in, they fallow an aggressive philosophy trying to push all other competitors out of the market. In order to reach this, they need to be able to offer for each customer segment at least one alternative (and there are many customer segments). One can like or dislike the strategy, but it is legit.Of course, this has negative consequences for resilling Samsung products. On the other hand, Samsung offers it's customers better hardware for the price they pay which compensates for the disadvantage.
10. aksa123 (Posts: 274; Member since: 30 Jan 2014)
I don't think S3 is that good tho. S2 was a bang (first time seeing Super AMOLED Plus, just wow).
43. dickwyn (Posts: 602; Member since: 07 May 2012)
i believe that the S2 is no doubt the best in the Galaxy S series because it shows the most improvement and if you notice it is the only flagship which has a AMOLED "PLUS" display where others only build up upon resoulutions
13. networkdood (Posts: 6329; Member since: 31 Mar 2010)
Got to agree with the resident troll here - wife has a galaxy s3 mini - there are a ton of different galaxies...Samsung should just do 3 sizes of galaxies, with 2 variants each - one variant with a 1080p display and the other with a 1440p display....6 different phones is much more streamlined than 100...lol
45. aksa123 (Posts: 274; Member since: 30 Jan 2014)
Becoz there're billions of galaxies in the universe !! That's why samsung makes billion versions of each G series !!
25. dexter_jdr (Posts: 1163; Member since: 28 Jun 2012)
my friend experienced a normally used S4. and told me that it is sluggish/slow/laggy/ ....help me find a synonym word for a device that easily brakes(in any way).
34. Cicero (Posts: 682; Member since: 22 Jan 2014)
I have it *S4* and what you say, by your friend experience, is totaly oposite. I am totaly (mean totaly) satisfied of all aspects of using S4. And I am switching from iPhone.
27. maherk (Posts: 2263; Member since: 10 Feb 2012)
Poor build quality? Last time I checked, it wasn't the S4 that had scuffs and scratches out of the box, and it wasn't the S4 that had gaps between the speaker grills and the glass, and no it wasn't the S4 that had squeaky sound when you press it back. As for the bloated UI, people are buying the Galaxies because of their UI, but it is bloated for the HTC, Apple, and even LG fans(kinda ironic for the LG fans, they attack Samsung for their UI and plastic, yet their companies model is to copy it). As for the weak radios, I've had the s1 to the s4, note 1 to the note 3, and never I had a problem with network signals. Last time I checked, it was those "premium" aluminum phones that suffer the most from signal dropping.
For the record, it is absolutely normal for a phone to drop its price, back home the S4 is sold for $545(690 when released), one for 545(720 when released), Z for 440(690 when released), the "all new" Z1 for 600(745 when released), lastly the iP5S for 670(1120 when released).
Phonearena's agenda is not hidden from anyone, their articles speak for themselves. Everyone remember those "sponsored" articles for the LG G2.
40. CanYouSeeTheLight (Posts: 1058; Member since: 05 Jul 2012)
Yes poor build quality, last time i checked no other phone manufacturers were being molested because their phone's screens break by themselves while being in a pocket.
100+ pages on xda.
32. andynaija (Posts: 601; Member since: 08 Sep 2012)
I agree with the numerous variations part Samsung really needs to chill with releasing so many versions of one phone, I mean 5 variants is okay but more than 8 is a little too much. I don't think they have poor build quality. About weak radios, and a bloated ui idk you'll have to research on that.
42. SuperMaoriBro (Posts: 400; Member since: 23 Jun 2012)
Article says date 4/26/2014 s4 was $840 when date should be 2013.
2. datphoneguy (Posts: 145; Member since: 15 Sep 2013)
I will say that the S4, when it first launched, was incredibly expensive in my opinion ($250 on a 3 year contract in Canada). Hopefully Samsung is a bit more competitive with pricing with the S5 so it doesn't need to resort to price cuts.
3. neops (Posts: 244; Member since: 28 Jan 2014)
I9500 is obsolete because of I9506 LTE (470€)
6. Tsepz_GP (Posts: 887; Member since: 12 Apr 2012)
Thats why the I9500 got 4.4.2 KitKat 1st, yeah? LOL.
14. Aploine (Posts: 309; Member since: 24 Oct 2013)
Got it first because it's an OLDER version. Got it?
18. Tsepz_GP (Posts: 887; Member since: 12 Apr 2012)
The Note 3 is newer yet got it 1st, and it shares the same chip with the i9506, your argument is invalid, sorry. :)
19. Aploine (Posts: 309; Member since: 24 Oct 2013)
Note 3 is a premium / pro device. Priorities.
And I9506 will have it within a month. So?
26. Tsepz_GP (Posts: 887; Member since: 12 Apr 2012)
A premium/pro device? Where do Samsung state that exactly?
The point is the I9500 is not obsolete, nor is any other GS4 variant.
30. Aploine (Posts: 309; Member since: 24 Oct 2013)
You said it your self that I9506 shares the same chip with Note 3. Anybody can do a comparison between I9500 and I9506 specs
31. Aploine (Posts: 309; Member since: 24 Oct 2013)
And the term "obsolete" is relative of course
39. Tsepz_GP (Posts: 887; Member since: 12 Apr 2012)
Nobody was, someone said the i9500 was obsolete, I replied and then you sort of came in with your own agenda.
4. jan25 (Posts: 437; Member since: 26 Feb 2012)
where i live, it's more than $100 cheaper than the 5s. whatever the iPhone does better than than the S4, it surely isn't worth the extra $100.
35. Cicero (Posts: 682; Member since: 22 Jan 2014)
Lucky you! Where I live S4=400 Eur and iPhone 700 Eur. Anyhow for the same price I will be choosing S4.
8. mss1988 (Posts: 32; Member since: 19 Apr 2012)
It costs 400€ here in Serbia. Same price to One, G2 and Lumia 1020. Z1 is a little bit pricier, 450€.
9. Tsepz_GP (Posts: 887; Member since: 12 Apr 2012)
Hasn't dropped much if at all where I am here in South Africa. May I ask PhoneArena, did you lot do your research and check the price of the S4 in all the continents at least before drawing this conclusion?
The S4 will be a steal when the S5 arrives though, considering how powerful and functional it is, I'm constantly wondering to myself if I should skip the S5 and get the Note 4 as the S4 is still great especially now with KitKat.
11. networkdood (Posts: 6329; Member since: 31 Mar 2010)
Maybe people just want a bigger phone, I mean a 5 inch display is the new 3.5 inch display....
15. cripton805 (Posts: 1133; Member since: 18 Mar 2012)
I think you're right. I personally have seen more Note 3s than S4s in person. They should compare the sales after the Note 3 was released. Compared last years s2 vs. Note 2 and see if there's a correlation if people are now waiting for the Note instead of the Galaxy S. Maybe not "yet" but if the trend is picking up more steam.
12. ryq24 (Posts: 587; Member since: 17 Oct 2011)
Only Apple can sell their iPhone at very high price and get away with it!
16. trickster_qc (Posts: 83; Member since: 18 Jun 2013)
Samsung had sold over 40 million S4 back in november. That's 40 millions units. And it's not selling well? Please. It's not because Samsung imagined selling over 100 millions that 40+ isn't a good. They missed their target, yes but they stil make a shi*load of money.
And yes the price has dropped by 33%, which isn't much. The same happens to all electronics. The only manufacturer not doing that is Apple, because they prefer to re-release the same phone a year later with a price and quality drop.
And apple fans can say what they want about the S4 but it's a great phone with awesome features. A few things could be improved for sure, just like any other smartphone.
38. Napalm_3nema (Posts: 1570; Member since: 14 Jun 2013)
They had shipped 40 million. Samsung doesn't report sales. I'm betting that the falling price is due to the high return rate (It was over 15% in Korea for the first 3 months). Haven't you noticed that it has been awfully quiet on the Galaxy front since November? 40 million in 6 months, but not enough to hit 50 in the following 3 months?
17. Naviiin (Posts: 14; Member since: 10 Oct 2012)
LG's even more impressing. The G2 can be found for under €400 in Europe, I'm having a hard time finding a store that prices the S4 that low. And strangely enough, the HTC One's not going down in price at all it seems. Weird decision.
20. networkdood (Posts: 6329; Member since: 31 Mar 2010)
Not sure that impressing is the correct term...
28. trickster_qc (Posts: 83; Member since: 18 Jun 2013)
the LG G2 isn't selling well anywhere. That's why the price is so low.
21. networkdood (Posts: 6329; Member since: 31 Mar 2010)
My concern with Samsung phones is Knox and locked bootloaders - you have to do your research carefully before deciding to get one, if you like to mod...
22. fanboy1974 (Posts: 1313; Member since: 12 Nov 2011)
If Nexus 5 was on Verizon I would have gotten that. But I knew full well that the Note 3 was locked down so I can't complain. I'm happy with the bootloader workaround.
23. hurrycanger (Posts: 1492; Member since: 01 Dec 2013)
I always thought the S4 started at around $600.
24. kashhef (Posts: 5; Member since: 06 Nov 2013)
Apples strategy is not to cut down prices & charge high for same ugly shaped phones, coz Apple have nothing else to sell in phones for the whole year. But on the other hand Samsung keeps no limitations they have a lot of things to sell even in a single smart phone segment, i think Samsung startegy to sell more and provide their customers a featured rich updated phones. you can compare S3 and S4 as a example how much advancement found in S4, and very sorry to say what apple lovers found updated in in i phone5 if campare it with i phone 4 or 4s. Apple is simply a fast operating system with very limited features.
29. strikercho (banned) (Posts: 156; Member since: 20 Mar 2012)
Soo, finally the Asians will sell their phone a bit closer to its real price, which should be about $150-200(without contract, of course).
44. Calm_down_mon (Posts: 36; Member since: 12 Dec 2013)
this is probably the only reason I do not want the phone, I understand that cuts have to be made for it to be affordable , but that is some significant cut in the quality department.