Samsung handset prices tumble at T-Mobile USA

T-Mobile USA Inc. grabbed attention among tier one U.S. carriers for the most price drops in early December, with four Samsung Electronics Co. Ltd. handsets discounted-and one jumping in price.
The Samsung t619 careened from $80 to free, the t319 dropped from $40 to $30, the Trace plummeted from $100 to $50 and the t629 dropped from $150 to $100. At the same time, the t609 jumped from free to $50.
Asked whether the price changes reflected agreement and cooperation between T-Mobile UAS and Samsung, T-Mobile USA’s Peter Dobrow said the carrier does not comment on pricing strategies. Neither does Samsung, even when it comes to remarks by the president of its telecom business.
Lee Ki Tae told a Dow Jones reporter at ITU Telecom World 2006 in Hong Kong earlier this month that Samsung would not cut its average selling price to make up lost market share.
Samsung enjoys a relatively high ASP; according to Dow Jones, that ASP is $175, in contrast to Motorola Inc.’s $131 and Nokia Corp.’s $124. Lee Ki Tae also said that Samsung would increase the proportion of under-$60 handsets it shipped next year to 10 to 15 percent of its total shipments, particularly in emerging markets where it needs to compete with the scale and volume enjoyed by market leaders Nokia and Motorola.
Samsung spokesperson Erin Lee said that the company would not comment on whether Lee Ki Tae’s remarks represented official company policy.
The other tier one carriers in the United States were less active in making price changes in early December. Sprint Nextel Corp.’s only change was to hike the price of Samsung’s A900m from $50 to $80, while Cingular Wireless L.L.C. and Verizon Wireless also made minor price changes.