Why are retailers dropping the price of the Galaxy S II?

Posted:  October 2, 2011   By:    30 comments   


The Samsung Galaxy S II is Samsung’s top-selling smartphone globally. In fact and things are no different in Malaysia. Everyone we spoke to either wants to get a Galaxy S II or thinks that it is a good smartphone. On the streets, we certainly see more of the Galaxy S II than its direct competitor the HTC Sensation.

So with all this popularity and brisk sales of the Galaxy S II why the sudden drop in price? This goes against everything a good marketeer knows. If there is demand, you don’t drop prices — you either maintain or bring it up. So what’s happening here?

There’s certainly no need for retailers to drop the price of the Galaxy S II to help move sales along, the device is practically selling itself. Could there be other forces that is driving the price of the device down?

There has to be. Price adjustments are “cause and effect” things. Something needs to happen for a price to drop. So what’s happening that’s causing the price of the Galaxy S II to go down? We don’t know for sure, but looking at the horizon, the price drop could mean that Samsung Malaysia is making room for another product to fill the price bracket left vacant by the Galaxy S II price drop. This is by no means a certainty but it is one very possible scenario.

Now the question is, what device will come in to be priced on top of the Galaxy S II? The obvious answer is the upcoming Nexus device that is expected to be unpacked in October 11. But we don’t think this is the case. The new Nexus device, while being manufactured by Samsung, has no place in the Galaxy product family. In terms of positioning, there is a clear distinction between the Galaxy S II and the Nexus Prime. The two devices are not complementary of each other, they are competing against one another, so its absurd to think that Samsung would drop the price of its top-selling device to make room for a competing device.

To us, the drop in the price of the Galaxy S II indicates that Samsung is preparing for a new product to enter the market. The device will be Samsung’s new flagship Android and it will be priced at around the RM2,300 – RM2,000 mark. What device we know of that is a possible fit to this theory? The 5.3-inch Samsung Galaxy Note.

The Samsung Galaxy Note is expected to go on sale in the UK in November. Over there it will retail for £500, that’s about RM2,450 which is close to the RM2,300 to RM2,000 range we think the 1.4Ghz dual-core device will sell when it comes to Malaysia.

So that’s what we think, Samsung is dropping the price of its best-selling Galaxy S II to make room for the Galaxy Note. Of course, this is all pure speculation at the moment.

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30 Comments for Why are retailers dropping the price of the Galaxy S II?

Sid Acidic

they want to sell as much as SGS II as possible before that stupid iphone 5 4s whatever thing comes . and to make room for new product which is the almighty Galaxy Note ! like u said. wehee :D cant wait cant wait !

rosdi

There is no reason for a company to drop the price of its best selling product. They would only drop it once a new better product has been launched!.. why on earth would they drop the price BEFORE the new product has been launched?!.. Companies naturally (and rightly so) will want to milk as much money as possible from the customers..

…unless the company wants to prevent the sales from going to competitor!.. new iPhone comes to mind…

zeer

this is their marketing strategy. they want to attract more peoples to buy the galaxy s 2 before iphone 5 is out. Good sammy.

Alinda

The bad blood between Samsung and Apple actually benefit the consumers. I dare Apple to price iPhone 5 at RM1899 to match Samsung Galaxy S 2 price

nijai

Or maybe they are a good company with a mission to sell affordable and quality phone to the consumers…just kidding.Yup IMHO galaxy note is coming. But @ 5.3 it a niche market. Not all will like it, remember dell streak anyone?But personally i liked it.The bigger the better

mtxx

I don't believe it. The reason is obvious. Its to sell as much sgs2 before iPhone 5 is out. There are many people who r waiting for iPhone 5 to see whether its worth buying than the sgs2. The price stop nw will attract alot of people to sway away from the iphone5. If its to make room for the galaxy note, sgs2 price will drop only AFTER the note is announced.

Jon

the reason for the price drop is because samsung is now selling another type of galaxy s2, which is the i9100G. instead of using a exynos processor and mali gpu, it uses a ti omap dual core proccesor and powervr sgx gpu, which is slightly weaker than the exynos/mali combination, but offers better heat dissipation. also i9100g has no custom kernels or roms to play with anymore, i9100 roms not compatible with i9100g

    zzz123

    I believe this is the reason for the price dop. because now all new stock is i9100g

    racistmalaysian

    I plan to buy SGSII. i heard about Android fragmentation. But I thought SGSII can play anything. Are you saying fragmentation happened in the same model? I tot fragmentation is bad in Android. I didn't know it is THIS bad.

      goh

      ifag like you know nothing about rooting.
      even with different processor or different screen size, most apps work perfectly for any android phone out there.
      what jon mentioned was that the new type of sgs2 can't use the existing custom rom available for SGS 2 which ifag like u know nothing about it.
      and don't buy sgs2, is bad for you. it might kill you too due to fragmentation.

        racistmalaysian

        With iPhone, everything work :)

ichigowie

The reason is simple…IPhone 5 n 4s…

Wari

Coz they want to bring New SGS II with NFC here.

FOO LAI HIN

i think is because others phone model r much more cheaper then SGS II.Uknow malaysia peoples would rather buy the cheaper one

Betty

so what's the price for a SGS2 today?

    Izzat Zainol

    i think shud be 1.8k rite?

      djdjdj

      superbuy.com.my offering at rm1699..

        Wari

        I already buy one from superbuy.com

GoldBear

As u all know, there have been lawsuits from apple to prevent sales of this device in europe including tablets.Not sure it is spreading to asia that causing price dropped.

FaizFizy Rosle

Feeling want to trade my SGS II with the new Galaxy Note. Shud I sell my phone now? XDD

fadzly

simple
the answer is because -> IPHONE 5 is coming la

dvdvdv

yes, as pointed by some commenters, current batch of SGS2 is inferior in specs.. A number of ppl already bought these without knowing..and lambasted samsung in their FB page.. Apparently there are some apps/games u cant run with these G-spec SGS2.. So buyers beware..

daniel

I would think it will be due to iPhone 5 and its aggressive pricing. Perhaps outright purchase price of RM1700-1900. :)

nidot

no no no all wrong.. i think because samsung already rich n want to do sum charity… whahah…

Malcolm

Could it be the SGS II LTE or SGS II HD LTE set(s) are coming here (without the LTE)? http://www.androidsupernova.com/2011/09/samsung-a

jtan

maxis no longer hold samsung products… bummer..

jtan

maybe the apple/samsung patend wars is arriving to malaysia?

Steve

galaxy note is a different league than galaxy s2, it is more like a tablet. S2 price drop because the 2nd hand market is flooded with it, demand and supply, simply as that.

S3 is confirmed coming early next year, google nexus 3 is coming next month (80% certain) and iphone 4s will be doing ok. S2 is dropping price because they want to clear off s2 before end of the year.

jade

the price drop because all new S2 are GT-I9100G instead of the original GT-I9100

the processor changed from samsung own exynous to omap 4430 which explain the price drop

Anonadude

Actually the reason of the price drop is because samsung have found a new and cheaper material to make their processor. Thus the overall price of making the phone dropped and so did the selling price