Why are prices for the Samsung Galaxy S5 so low?

I  couldn't help noticing... the Samsung Galaxy S5 has only just gone on sale, and already prices are looking remarkably keen.


Three, Carphone and Tesco are offering particularly sharp deals, ranging from £33 to £39 per month – that's roughly the same price range as the Apple iPhone 5s 16GB model which has now been on sale for six months.


By comparison, the S4 was selling for £42-45 at launch, so what's going on?


It's no secret that Samsung was not happy with the sales of the S4, which was offered in four varieties – normal, Zoom, Mini and Active.


This time round it is offering just one flavour from launch and at prices that will make the S5 a no-brainer for Samsung fans who have just come out of their two-year contracts with the Galaxy S3.


The deals on offer include £33 a month at Carphone with £99 up front (but with £100 off for trading in your old handset), followed by Tesco at £34.50 and no up front cost. While Three will hand punters an S5 for £38 with a tiny £29 upfront cost for the handset - and with no premium for using 4G.


So with these kind of deals flying around, is the Samsung Galaxy S5 really a flagship device? It is certainly Samsung's hero product. But the premium crown seems to belong to the Galaxy Note series, the bigger brother with its nifty stylus, bigger screen and higher specs, which is due to make its fourth appearance towards the end of the year.


What do you think are the reasons for the keen pricing? And how do you think the S5 will fare?


Christian Azolan, Group Editor

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