The Telecom regulator is allowing the iPhone’s release with a minor condition, now the long-anticipated release of the popular phone in Korea begins.
When iPhone will be released locally, it will be expected to bring strong impact on the Korean mobile market. In fact, firstly, Apple may cut off Samsung and LG’s dominant position in the local mobile phone market. Combined, both companies’ handset market share maintains 80 percent in the market.
Secondly, iPhone will be a catalyst to lower the price of mobile phones in Korea. Reportedly, the price tag of the Phone, expected to be on the shelves in October, will be around US$ 200 with a service contract. Comparing with Samsung and LG’s high-end mobile phones, including smartphones, the price of the iPhone is below one-fourth (1/4) or one-fifth (1/5) of its competition; additionally, iPhone’s functionality and service offering will exceed these others. For example, the price tag of Samsung ‘T Omina,’ a variant of Omnia for the Korean market which has been sold around 160,000 units since its debut in December 2008, was around US$810 without a service contract.
Thirdly, iPhone will be a signal of smartphone expansion in the local market. Before iPhone’s release, the market size of smartphones will be an estimated 500,000 units this year; however, according to industry watchers, the domestic smartphone market will increase to at least double the previous forecast this year.
Fourthly, wireless Internet usage will soar more than ever before. The iPhone, the Internet browsing friendly smartphone will be expected to lead PC-based Internet users to mobile environments with its enhanced browser, Safari and fine user interface. KT, which reportedly will first introduce iPhone in the market, is preparing several data plans to boost wireless Internet through the iPhone.
Fifthly, if KT, the No. 2 operator in Korea, can widen the time gap in the market for iPhone’s release with SK Telecom, the leading operator, iPhone will be helpful to attract competitors’ subscribers. If the time gap will be short, KT may not hold the iPhone effect for a long time.
Source: Telecoms Korea
Comments
Apples and Oranges...
December 4, 2009 by Anonymous, 34 weeks 6 hours ago
Comment id: 12992
...are being compared when the price of an iPhone is cited as "around US$ 200 WITH a service contract" and compare to a "four times more expensive" Omnia "around US$810 WITHOUT a service contract". I am sure that the iPhone will be similar in pricing without service contract.
I would like to have read more about the "release with a minor condition" which probably is a MAJOR one, given the twists and turns used in this press release.
Samsung and LG will only be seriously threatened if Nokia would start selling phones here. I have an iPhone 2G myself (from a time when I lived in a place where all phones would work) and love the wireless and toy capabilities, but as a phone (meaning a tool to make and receive phone calls) it has always been a disappointment, at least until jailbroken and buffed up with non-Apple-approved 3rd party utilities.
Still it is better than any Korean phone, which are probably among the worst in the world today (especially with respect to UI) - designed by teenagers for teenagers. The LG and Samsung phones for export are slightly better.
I'm worried about the idea of data plans for wireless, another attempt of a business to charge for something which you can basically get for free here (wireless internet), the one thing that makes Korea great. This will probably be the "minor condition" tied to the release, at present I can use my overseas iPhone online for free. Contrary to the press release, I believe that data plans will not "boost " wireless internet usage but restrict it (through cost).
Well there. At least Kroea is catching up with the world (now only 2 years behind)!
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