Samsung’s Smartphones Are Now The Most Subsidized in the Market

Samsung SmartphonesFor years, Apple has been considered as the most subsidized smartphone maker, since its handsets tend to cost the most. After receiving subsidies, new iPhone models are typically priced at $199. However, the company just lost its title recently, since Samsung has become the biggest subsidy recipient.

This shouldn’t be too surprising, since Samsung’s high-end models are as expensive as the iPhone. The Galaxy S4 and Galaxy Note 2 are among the hottest in the industry with top of the line hardware configuration. The ABI Research says that Samsung smartphones get 85 percent subsidy, which is covered by subscribers over duration of the two-year of contract agreement.

HTC shows up second with 80 percent subsidy and Apple comes in third with 74 percent subsidy. Samsung is known for its excellence in supply chain and scale, allowing the South Korean company to put price pressure on the competition and win sizable market share in the process.