Technology

What Price Will The Galaxy S6 Retail At?

The unveiling of the Samsung Galaxy S6 is just a couple of hours away now, but rumors rumble on about the pricing of the device. This has been a particular focus of this Galaxy S release, as Samsung will unveil the first ever Galaxy S Edge device, when it displays the Galaxy S6 Edge to the general public in Barcelona.

The 2015 Mobile World Congress is the ideal setting for a release of this magnitude, and although it has been a traditional setting for Samsung releases in the past, this year’s trade show promises to be particularly intriguing. This will be a revolutionary smartphone in several respects, with Samsung not only releasing a Galaxy S6 with a curved display, but also the company will be almost certainly largely relying on its own Exynos technology for the first time in the history of the Galaxy S range.

What Price Will The Galaxy S6 Retail At?

Galaxy S6 delays

However, Samsung has an ambitious remit for this particular smartphone, and recent reports have suggested that the production of the Galaxy S6 has not been entirely smooth for the Korean corporation as a result. Not only has it been reported that this next-generation handset could be prohibitively expensive due to production costs, it is also rumored that Samsung has experienced problems with manufacturing the display of the device in its curved version.

As much as this may be the case, it is quite obvious that Samsung must have circumnavigated these problems to a greater or lesser extent by now. With just two days until the unveiling of the device, it is obvious that Samsung has been able to manufacture the device in large numbers.

However, this only tells part of the tale. If it is inordinately complicated for Samsung to produce the Galaxy S6 then this could hamper the success of the device. After a difficult 2015, Samsung is not really in a position to launch the Galaxy S6 at an expensive price point; this needs to be a state-of-the-art handset at a mass-market price.

Galaxy S6 price rumors

Sources close to Samsung have suggested that they have already seen the Galaxy S6, and that not only are they aware of the three models which will be released, but purported price points have already been leaked. Thus, it is suggested that the 32 GB version of the Galaxy S6 Edge will retail at €849, with the mid-level 64 GB device costing €949, and at the top of the range 128 GB model entering the marketplace at a €1,049 price point.

The source in question also suggest that the non-curved version of the Galaxy S6 will retail at €100 less for each of the three separate models.

In terms of the United States market, €849 translates to around $950, while the top of the range Galaxy S6 Edge would retail for around $1,189 in the United States based on its purported euro value. However, it is worth noting that the US market is an excellent one for retailers in the consumer electronics niche, as devices are usually released for lower prices in North America than Europe. It is thus misleading to assume that the cheapest Galaxy S6 Edge device will be $950 in America, as it may turn out to be significantly more affordable.

Nonetheless, it is worth noting that the reported price of the Galaxy S6 Edge in its highest storage capacity is around €50 more than the iPhone 6 Plus. This is pretty significant considering that Samsung will be competing directly with the iPhone series when the Galaxy S6 is released, and Apple of course has had a tremendously successful 2014. Not only did the corporation achieve the landmark of becoming the first ever $700 billion company in market capitalization, but it also accrued the highest single-quarter profit in recorded business history.

It would be a high-risk strategy for Samsung to release a mobile at a higher price point than the iPhone 6, even if the Galaxy S6 is actually more powerful than its Apple rival. Although Samsung can already post a huge number of fans, the Korean electronics giant will be looking to attract existing iPhone owners, along with consumers of other mobile devices. It will be harder for them to do so should the price point of the Galaxy S6 be significantly higher than the iconic iPhone series.

Saving money on the Galaxy S6

Another issue which keen mobile purchases may wish to pay heed to is whether or not it is a good idea to rush straight out and buy a Galaxy S6. There is nothing like the excitement of getting your hands on a new piece of tekkie kit on the day of release, but the more frugal among us may instead wish to wait a little longer considering the statistics released by Idealo recently.

It is suggested by the market research firm that the Galaxy S6 could reduce in price by as much as 28 percent just six months after it is launched. This is not based on speculation; Idealo looked at a morass of data from previous Samsung smartphone releases, all of which experienced a dramatic drop in price in a relatively short time-frame after being released.

This has been reflected in the Galaxy S5, which fell by around a quarter in price within just six months of release. Idealo expects a similar pattern with the Galaxy S6, and thus estimates a price drop of 17 percent for the Samsung device within just three months, with this nearly doubling to 28 percent within half a year of the release of the flagship Samsung handset.

If this research is correct then American consumers could save as much as $200-250, depending on the model purchased, by simply waiting six months in order to purchase the Galaxy S6 or Galaxy S6 Edge.

As much as Samsung and Apple can always rely on huge sales of any devices that they release, pricing is always a major issue for consumer electronics, thus it will be intriguing to see how Samsung has set the price point of the Galaxy S6 when it is finally unveiled on March 1. Getting this issue right will be central to the success or otherwise of this mobile.