The deal with new foldables
As Samsung approaches the next Galaxy Unpacked event August 10, they are once again offering a pre-pre-order option for customers, at a saving of $200. The $200 credit applies to customers who reserve the newest Galaxy Z series smartphone, Galaxy Watch and Galaxy Buds all at once. Other perks include high instant trade-in values, 36-month 0% APR financing, payments over time with Affirm and device colors exclusive to the brand’s direct-to-consumer (DTC) channel.
The NPD Take:
- The pre-pre-order model was successful with the S22 announcement, for which Samsung offered a $200 Samsung store credit with trade-in during the reservation period. This credit could be applied toward accessories or other Samsung product categories. This time the credit is only $200 if you reserve all three devices; the credit for the smartphone alone is $100. This, along with the other incentives could still attract customers to consider reserving early. One wrinkle is that the price and product specs are not yet being shown, making potential customers trust that they want the phone with limited knowledge.
- According to our Connected Intelligence Mobility survey, 60% of consumers who are not likely to purchase a foldable as their next smartphone reported that price was a factor in this response. Customers can now make a decision: if they’re ready to fully immerse in, or refresh their Samsung mobile ecosystem, they can earn $200 off just by signing up to reserve the devices. Plus, if they have a current Galaxy to trade in, the emphasis on offering the highest instant trade-in values through the reservation program could be a big factor.
- Samsung is, of course, not the only brand to promote preorders, but the reservation before the pre-order is unique. At the same time, we see Google promoting the new Pixel 6a via the brand site and through retailers like Best Buy. Right now, if you pre-order the Pixel 6a, you receive a free pair of Pixel Buds A-Series. This cross-category promotional emphasis is interesting as we consider brand ecosystems and loyalty. Can incentives like these create enough pull for consumers to keep their mobile and mobile-related purchases within one brand?
AT&T’s back to school benefits
AT&T published two separate press releases about back-to-school deals – one for Apple devices and one for Samsung. On the Apple front they’re offering up to $700 off the iPhone 13 Pro Max with eligible trade-in and discounts on various Apple Watch models. For Samsung, a free Galaxy S22 with any condition Galaxy trade-in and buy-one-get-one free on the Galaxy Watch 4 Series. AT&T is also promoting its device protection assurance program, AT&T Protect Advantage, and AT&T Secure Family App to keep kids safe. And it’s not just for the students: teachers and their families get 25% off AT&T service plans, which is not a seasonal promotion – it is available year-round. AT&T was the first of the top three postpaid carriers to promote their back-to-school offers.
The NPD Take:
- This time of year is a big one for younger consumers, some of which may be picking out their first smartphone ever. In these situations, they are potentially not yet loyal to a specific brand and whichever brand is first in the hands of these young consumers has the opportunity to forge loyalty. This can be done by having student-oriented features like AT&T’s Secure Family app for parents’ peace of mind, available on the Samsung, since parents can play a large role in students’ first phone decisions.
- With iPhone typically having a large base of younger consumers, students are a big opportunity. While Samsung’s S22 is free of charge with trade-in, though, students or parents may opt for the less expensive option. However, if peers of these young consumers already own iPhones it may be a difficult feat to pull them toward Android. After all, according to our survey 37% of consumers who switched from Android to iPhone did so because their friends or family use an iPhone.