Reuters quoted IBK Securities analyst Lee Seung-woo, who said that the price cut “reflects how much Samsung is agonizing to secure margins. They're now offering premium models at lower prices as the demand outlook for high-end phones remains uncertain.”
At launch, an unlocked Samsung Galaxy S5 was priced at $832 (866,800 KRW) in South Korea.
Another analyst, Lee Min-hee (from IM Investment), assumes that the bill of materials (BoM) for the new S5 is 10 to 15 percent lower than for the Galaxy S4 from last year. With that in mind, maybe we shouldn’t be surprised to see Samsung offering the S5 for less than its initial price.
The Galaxy S5 will be launched around the world later this week, on April 11. For the moment, there are no signs to indicate a price drop for the handset in international markets. In the US, the new S5 will cost $599.99 off contract, and $199.99 with a two-year contract agreement.
It’s said that a premium version of the Galaxy S5, possibly called Galaxy F, will be introduced later this year to cater the needs of those who aren't satisfied with the materials used to manufacture the regular S5. Until then, for more about the S5 that's going to be widely available this week, you should check out our review of it here.
Samsung Galaxy S5
Reuters also discussed about Apple and its upcoming smartphones. As you may know, the Cupertino company should announce a new iPhone model in the second half of 2014. In fact, we might see two new iPhone models this year, one sporting a 4.7-inch display, and another one featuring a 5.5-inch screen. Toni Sacconaghi, an analyst at Bernstein Research, reportedly believes that “making the screen just 30 percent larger could wipe 4-5 percentage points off” Apple’s gross margins. Even so, the price of the new 4.7-inch iPhone 6 (or whatever it’s going to be called) is expected to remain at the same level with the price of the iPhone 5S from 2013.