Samsung S5 Freebies

Samsung Electronics Co., facing more competition from Apple Inc. and Xiaomi Corp., is cranking up incentives for its Galaxy S5 to as much as $600 in freebies to defend its place as the world’s largest smartphone maker.

With the marquee device from the Suwon, South Korea-based company making its debut in 125 countries today, customers will be offered PayPal vouchers, a LinkedIn Corp. premium account and at least four fitness-related apps. It’s the first time Samsung has offered incentives for its top-selling S series of devices.

Samsung is fighting to make its phones stand out in the market against new iPhones and up-and-comers such as China’s Xiaomi and Coolpad Group Ltd. The strategy may force rivals to lift incentives or lower prices, meaning a potential profit squeeze throughout an industry that has seen the fall of once-dominant producers Motorola Mobility and Nokia Oyj. Already, Samsung’s operating profit has fallen for two straight quarters.

“Samsung must do whatever it takes to maintain its global consumer electronics leadership,” said Neil Mawston, director of global wireless practice for researcher Strategy Analytics. “Previous failures like Motorola have shown in the past that once you lose your grip on top spot, it is a very long and painful process to get it back.”