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Government-imposed sanctions result in carriers jumping the gun on Galaxy S5 sales

Although the general enthusiast community reaction to the announcement of the Galaxy S5 was a solid “meh”, it appears that South Korean wireless carriers are extremely eager to get the device into the hands of paying customers. The Associated Press reports that several South Korean carriers — including SK Telecom, KT Corp. and LG Unplus Corp. — are selling the Galaxy S5 to customers well ahead of its April 11 global launch.
 
The carriers decided to launch the smartphone early because the South Korean government imposed a 45-day suspension that will prevent them from accepting new customers. The suspension was handed down because carriers were providing illegally phone subsidies, and those actions are most definitely frowned upon by the South Korean government.
 
The suspension begins on April 5, so the carriers are scrambling to take advantage of any sales bump from the initial launch of the Galaxy S5 before they are legally prevented from doing so.


Samsung Galaxy S5
 
Not surprisingly, Samsung has made it clear that it is unhappy with this recent turn of events. In an emailed statement to Bloomberg News, Samsung stated that it was “Very puzzled” by the actions of the carriers, and that “SK Telecom strongly asked for an earlier release of the product but we delivered our stance that the global release date of April 11 remains unchanged.”
 
Obviously, SK Telecom and the other carriers decided to take matters into their own hands.
 
Samsung also reached out to The Verge, and provided the following statement:
 
The official global launch date of the Galaxy S5 is April 11, as previously announced. Samsung has provided mobile carriers with a limited number of units for marketing and pre-sales activities, however the decision to release the device early in the Korean market was made by the mobile carrier itself, independently of Samsung. We express our regret at this decision and we are working to verify all the facts.
 
We’re not sure if Samsung will have much of a recourse to this betrayal from its home market wireless carriers. After all, Samsung would be shooting itself in the foot by retaliating against the same companies that are responsible for selling one of its most profitable products.

Sources: Bloomberg, Associated Press via Yahoo News, The Verge



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By mrwassman on 3/27/2014 3:14:28 PM , Rating: 4
quote:
The suspension was handed down because carriers were providing illegal? phone subsidies




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