In a market marked by the crisis and with poor prospects for the rest of the year in regard to the sale of electronics, Samsung plays a strong card with the launch in Argentina of the S10, its latest generation of smartphones.
The context is really adverse for the brands that operate in the country: together, the main players foresee sending to the network of shops and providers only 7.5 million phones, the worst record since 2010.
In a scenario in which the purchasing power of the Argentineans fell sharply, thanks to the rise of the dollar and an inflationary index that does not recede, "low cost" cell phones are gaining ground and this helps explain why Samsung decided to move forward with an aggressive pricing strategy for its new high-end models, putting Argentine prices in line with international values, in dollar terms.
Undoubtedly, this is an unprecedented event, given that historically the domestic market was always more expensive - measured in foreign currency - than the rest of the world for the purchase of electronic equipment.
Samsung activated the pre-sale of its three new models of the S10 family through its platform and that of the main retailers and operators with values that are even below the region.
In general, depending on the channel, new smartphones can already be obtained in this presale at a price of $ 39,999 for the case of the Galaxy S10e, $ 49,999 for the Galaxy S10 and $ 54,999 for the S10 +.
Based on these figures, and taking as a reference the value of the S10 model, iProUP created the "Samsung Index" to establish a comparison and determine where in the international ranking Argentina is positioned.
Considering that this version is quoted at almost $ 50,000, this is equivalent to about US $ 1,066 at the official exchange rate.
This puts Argentina below other markets, such as Uruguay, where this same model is offered at US $ 1,290.
It also implies that an Argentine buyer will be able to obtain it in the local market at a lower price than in Peru (US $ 1,200) and even in Chile (where US $ 1,185 is offered), which has been up to a couple of years ago. of years it was the great mecca for tourists who crossed the mountain range in search of electronic items at a lower price (see box).
What is also striking is that the value established by Samsung for this pre-sale in Argentina is very much in line with the one set for the United Kingdom (US $ 1,066) and is only 10% more expensive than in the United States, where This equipment costs US $ 963, taxes included.
Aggressive business strategy
How is it possible? Although devaluation often generates an effect of cheapening goods in dollar terms, the reality is that, with an inflation perspective of no less than 40% per year, at first glance it would not seem logical that South Korea make the great premiere of its last generation of phones with prices that, in a matter of months, could be totally outdated.
However, there are several reasons that explain this situation picture. And one of them has to do with what is a purely strategic commercial decision that consists, neither more nor less, in going out to fight in a difficult market with very aggressive prices as spearhead.
In Argentina, Samsung ended 2018 with an unpublished share: almost 6 out of every 10 cell phones that were marketed in the country had the company's seal.
And although at the international level the company is also in first place, its outside participation is of the order of 20%, so that it does not enjoy the absolute dominance that it does have at the local level.
From the company indicated that they seek to redouble the bet with these new equipment to strengthen the fight in the high-end market and even achieve double the goals achieved with the S9.
In the "iPhone Index", Argentina continues to the top
A clear example of how the "Samsung case" is not replicable for all brands, is observed when comparing what happens with iPhone equipment.
In that case, Argentina continues to be -as it has been since the first generation was launched- as one of the most expensive countries worldwide for Apple products, measured in dollars.
Indeed: the 64 GB iPhone 8 is trading today at an equivalent value of $ 1,381 in a premium local reseller, such as MacStation.
This value is 42% higher than that in force in Chile (US $ 962) and no less than 112% more expensive than the one found in a Miami store, where it is offered for US $ 650, including taxes.
This highlights Samsung's interest in having its products with prices aligned internationally, not only in Argentina, but also in the region.
Fees and even plan swap
The decision to shake the market a little with this launch is also based on other aspects, such as the wide range of financing and the possibility, even, of opting for a swap plan, which ends up reducing the sale value further.
In the case of Movistar, for example, you can buy an S10 released for $ 49,999 up to 12 installments of $ 4,167, that is, with a total financial cost (CFT) really without interest.
This, at a time when an inflationary index of no less than 40% is foreseen for the whole year, implies that the buyer will be able to benefit from a large liquefaction effect in the coming months.
In addition, Movistar also gives the possibility to opt for a swap plan: who delivers a used S9 model and in perfect condition, you can take the S10 in 12 installments of $ 2,691. This implies a value 35% lower than the list.
In the case of a retail like Garbarino, the same model is offered at a value a little above ($ 55,000) but also gives the possibility to access up to 12 installments without interest with some cards.
In parallel, Samsung has the program Galaxy Forever, which allows to deliver a used equipment in part of payment and opt for one of the three S10.
Thus, whoever has an iPhone 6, for example, can exchange it for an S10 paying $ 30,000, which would imply a saving of 40%.
Loose prospects
The reality is that companies face a much smaller market and with lower levels of profitability, in a scenario in which consumption collapsed.
According to data from the consulting firm GfK, updated to February, the sale of cell phones was advancing with a year-on-year decline of 22%, a factor that helped contain prices.
In fact, the average value of the equipment sold barely rose 3.5% in a year, which shows not only that the brands had no margin to adjust up, but cheaper equipment is commercialized.
In this context, telephone production in Tierra del Fuego is falling and it is expected, as mentioned, that it will reach the worst level in almost a decade.
Therefore, against this scenario, the strategy of some brands is to roll up, lower prices and try to surf the crisis.
