Samsung Elec to launch phone upgrade scheme in S.Korea

Samsung Card

09/03/2016 02:00

SEOUL, March 9 (Reuters) - Tech giant Samsung Electronics Co 
Ltd  005930.KS  on Wednesday said it will launch a phone upgrade 
programme in South Korea this week that will allow subscribers 
to switch to a new premium handset every 12 months.  
    Customers seeking to buy one of two Galaxy S7 models that go 
on sale starting Friday could sign up for the programme on a 
24-month instalment plan offered through Samsung Card Co Ltd 
 029780.KS , Samsung Electronics said in a statement.  
    Subscribers would pay a monthly fee of 7,700 won ($6.35) in 
addition to the cost of the device. They can upgrade to a new 
Galaxy S or Galaxy Note smartphone after 12 months under the 
plan in exchange for the original device they purchased.    
    Some analysts have said such schemes will be necessary for 
Samsung and other phone makers to counter slowing global market 
growth by coaxing consumers to replace their handsets more 
quickly. Rival Apple Inc  AAPL.O  launched a similar programme 
in the United States last year.  urn:newsml:reuters.com:*:nL4N11G4HO   
    The Galaxy S7s offer incremental upgrades, leading some 
analysts to predict sales in the first year will be weaker than 
last year's Galaxy S6s.  
    Samsung has launched an upgrade programme in the United 
Kingdom but did not immediately comment on whether any would be 
offered in other markets.  urn:newsml:reuters.com:*:nL8N1600FX 
 
($1 = 1,213.0000 won) 
 
 (Reporting by Se Young Lee; Editing by Stephen Coates) 
 ((vincentsy.lee@thomsonreuters.com; +822 3704 5646; Reuters 
Messaging: vincentsy.lee.thomsonreuters.com@reuters.net; follow 
me on Twitter @Rover829)) 
 
Keywords: SAMSUNG ELEC SMARTPHONES/UPGRADES