If you could rent a smartphone instead of buying it with monthly installments, would you pay less each month? When Samsung releases the Galaxy S25 series next month, that might be an option. Samsung Electronics Vice Chairman Han Jong-hee stated during a press conference this week that the company intends to introduce a subscription service for Galaxy smartphones beginning the next month.
Although we’re working with translations from a Korean news source, the general concept is as follows. Last year, Samsung launched its “AI Subscription Club” program for its high-end appliances, with what it considers to be some initial success. And by “subscription,” we mean that this is actually a leasing program because many individuals cannot afford the high cost of appliances. Because of the early popularity of appliances, the notion is that consumers might want to do the same with pricey phones like the Galaxy S25 Ultra (Have you made a reservation yet?).
With the Galaxy S25 series, Samsung intends to introduce a “AI Subscription Club” in an effort to increase sales. The moniker certainly gives the impression that you will be asked to subscribe to AI over the phone, but this article and Samsung are not suggesting that. Because the devices (including those appliances) have AI integrated in, they are naming it the “AI Subscription Club.” However, it will be a rental program similar to what Samsung introduced with appliances.
Naturally, joining this AI club may grant access to capabilities that are unavailable to others or benefits that could increase its allure. I’m speculating, but they must have a strategy that goes beyond simply offering cheaper device rentals, don’t they? Or perhaps they don’t?
Users are reluctant to pay a monthly charge to rent a phone, in my opinion. We don’t do it in the US, so I can see how difficult it would be to sell here. I might also be entirely mistaken, and some people might find it appealing to pay a smaller monthly charge in the hopes of eventually getting rid of the device and upgrading on a frequent basis.
We’re actually sitting here waiting to learn more because the specifics of this program aren’t currently available for Samsung phones.