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One can purchase ‘Nexus 5X’, which is a joint work of LG Electronics and , at about $88.38 (100,000 KRW).
Mobile telecommunication businesses have come out with strategies of maximum public funding (maximum rate system standard) of $291.66 (330,000 KRW) and self-reduction of store prices on the 20th when the product was released. Fierce competition between mobile telecommunication businesses is expected since they want to expand medium and low-priced phone markets and preoccupy Nexus’s manias.
SK Telecom has set the public funding at $291.66 (330,000 KRW) on the basis of Band Data 100 rate system. One can purchase Nexus 5X 16GB model, which costs $449.16 (508,200 KRW) at $113.75 (128,700 KRW) by adding public funding and additional 15% funding. 32GB model that costs $502.63 (568,700 KRW) can be purchased at $167.22 (189,200 KRW) after funding is added. SK Telecom set funding of $176.77 (200,000 KRW) and $194.80 (220,400 KRW) for Band Data 51 and 59 rate systems, which are middle rate systems, respectively.
KT autonomously reduced store prices of two models by $26.51 (30,000 KRW) for each model. KT’s store prices for 16 GB model and 32GB model are $420 (475,200 KRW) and $473.47 (535,700 KRW) respectively. One can actually purchase a 16GB model at $174.03 (196,900 KRW) if funding of $213.89 (242,000 KRW) from maximum rate system and an additional 15% funding are added.
Nexus 5X that is co-developed by LG Electronics and
A reason why mobile telecommunication businesses are competing against each other so fiercely about Nexus 5X is because South Korea’s medium and low-priced phone markets are walking on a diffusion path. A door of medium and low-priced phone markets, which are slowly expanding after mobile terminal distribution act 410 was enforced, was slightly opened by ‘Galaxy Grand Max’ and was widely opened by ‘LUNA’.
Although medium and low-priced phones do not really help much on average sales price (ASP), they are very important in increasing sales. Because Smartphones’ prices are decreasing whether they are premium phones or not, it seems that defending medium and low-priced phone markets hereafter is a must for Smartphone businesses.
Mobile telecommunication businesses cannot avoid this kind of trend as well. Fact that customers are focusing more on medium and low-priced phones that have excellent performance compared to prices, Nexus 5X is one of the optimum products that they need to focus on. This is also a reason why Nexus phone, which used to be sold through Stores (online) only, is now being sold through mobile telecommunication businesses for the first time.
Nexus 5X is a 3rd joint product by LG Electronics and . It already received much attention even before its release due to recent Android operating system (OS) 6.0 ‘Marshmallow’ Reference Phone and it costs about $441.92 (500,000 KRW) while having a premium-like performance.
‘Nexus’ is a product that is released with the newest Android version, and customers’ expectations towards it are high due to its optimization. Nexus has helped LG Electronics’ medium and low-priced phone businesses a lot as 5 million Nexus 4 and Nexus 5 copies were sold globally. There are groups of manias of Nexus as there are people in South Korea that collects Nexus series separately.
Staff Reporter An, Hochun | [email protected]
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