Samsung has formed deals with Etisalat and du to offer its Galaxy S III handset – dubbed the "iPhone killer" – at discounted rates.
The handset, which was officially launched in the UAE this week, has a retail price of Dh2,499 (US$680.38).
But one of the country’s telecommunications operators will offer the phone for free under a business model Samsung says is growing in the Gulf region. The other operator will offer the Galaxy at full retail price but with free data usage, Samsung said.
Such deals typically involve users signing up to a 12-month contract with an operator, which include monthly bundles of talk time and text messages. “Both Etisalat and du have their own packages, which will be announced within a few days,” said Ashraf Fawakherji, the general manager of the telecoms group at Samsung Gulf Electronics.
He declined to specify which operator would offer each of the two deals. Etisalat and du did not immediately respond to a request for comment.
Samsung has also struck deals with other Gulf operators to offer the new handset as part of a “price plan” contract.
“The S III is already launched with eight different plans across operators in the region,” said Mr Fawakherji.
Etisalat currently offers mobile-phone contract deals that include iPhone or HTC One X handsets. Packages are tiered, with consumers paying a higher monthly rental charge receiving a bigger discount on the handsets.
In many developed markets just 5 per cent of sales come from retailers selling phones at the full price without a contract.
“In most of the European countries and in North America, it’s above 95 per cent,” said Mr Fawakherji.
“It’s pretty weird to see a phone without a contract.”
However, in the Gulf region just 10 to 15 per cent of phones are sold through mobile operators, he said. In the UAE, the vast majority of mobile handsets are sold at full price via electronics retailers.
Samsung has sold some of its previous handsets, including the S II, though mobile operators based in the Gulf.
Mr Fawakherji said he hoped to grow the proportion of phones sold through mobile operators.
“I see the operators as the drivers for the mobile-phone business in the future,” he said. “They will be influencing the market much [more].”
The hotly anticipated Galaxy S III was first available in the UAE at the end of last month, with the official launch event held in Dubai this week. The phone has a 4.8-inch display and can track its user’s eye movements to ensure the screen does not dim or turn off when in use. It is expected to be the main rival to Apple’s iPhone 5, which is rumoured to be going on sale in the third quarter.
Retailers across the UAE have reported the S III has already sold out, and Samsung has acknowledged it will be unable to meet initial demand for the device.
“We are going to be facing a tight supply to our region until the end of the month ... It’s not only in the UAE, it’s in other countries in the region, and even in Europe,” said Mr Fawakherji.
However, Samsung has allocated handsets specifically to Etisalat and du so they can start offering S III packages “immediately”, Mr Fawakherji said.
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