In the Android market Samsung’s runaway success, it is normally ascribed to the company’s marketing and significant quality of manufacturing. A new report shows that the Korean manufacturer’s making pricing strategies could have just as much to do with it becoming Apple‘s number one competitor.
Analyst firm ABI Research today revealed that the average U.S. subsidy for Samsung devices in 84% of the cost of the devices themselves. This compares to Apple’s average subsidy of 74%. HTC is also mentioned as having an average subsidy of 80%. Though by percentage cost it’s clear that Samsung devices are being more aggressively subsidized, the higher initial prices of Apple devices means that, in absolute terms, Apple devices are being discounted more. As an example, the average subsidy for an Apple device is, according to ABI, $110 more than Samsung’s average subsidy.