why is buying from a vendor so much cheaper than from a company’s website?

Question

Let’s take Samsung for example. Buying the S23 ultra from samsung’s website (Kuwaiti region) costs around 417 Kuwaiti Dinar (≈350 after discount). However, buying the same exact phone from a vendor in Kuwait costs only 220KD. Almost half the price.

I understand that large vendors benefit from economies of scale but the difference is huge! Why is that?

In: Technology

Answer 1

Your local vendor might have agreements with local cellular networks in order to further subsidize the phone price. Without subsidies, it doesn’t seem like 220KD is possible, regardless of economies of scale.