Korean consumers may be unlikely to get their hands on the iPhone 3G as analysts project that the device will struggle against local rivals. Despite the recent attempts by the country’s second largest mobile provider, KTF, Korea has yet to secure an official deal to carry the handset.
For a nation where over 90% of the population owns a mobile phone, it has come as a surprise to many Korean consumers that the tech-savvy country has been left in the dark. Yet analysts have remained skeptical that Apple will tap the Korean market, as it is currently dominated by tech giants Samsung and LG, the world’s number 2 and 4 mobile phone makers, respectively.
“Apple probably doesn’t see the Korean market as lucrative due to the overwhelming presence of Samsung and LG,” said Lee Seung-ho, an analyst at Goodmorning Shinhan Securities.
Together the two companies hold nearly 70% of the local handset market, with Samsung commanding nearly half of the market alone. While both have introduced handsets with similar functions to the iPhone, including internet browsing capabilities and touch-screen interfaces, the iPhone could still have a shot at the dwindling market share held by Motorola.
Yet some analysts believe that Apple would have a difficult time making an impact on the Korean audience by only offering up one single model.
“Companies realize that the average lifetime of a mobile phone in Korea is becoming shorter and shorter compared to other places,” Lee said, adding that handset producers must continuously supply fresh models in order to survive in Korea’s near-saturated mobile market.”
Additionally, a more inescapable obstacle may be that of the obligation for foreign manufacturers to integrate WIPI, a wireless internet platform that has become a software standard for Korean handsets. This integration can be extremely costly and time-consuming.
While demand for the iPhone 3G may be prevalent among Korean devotees of the Apple brand, rival manufacturers Samsung and LG may be surprisingly willing to invite the Cupertino based company into their house. During a recent phone interview, Samsung spokesperson, James Chung, noted that the release of the iPhone could serve as a catalyst to expand the overall smart-phone market.
When questioned, Apple Korea spokesperson, Park Jung-hoon, declined to comment on whether Korean consumers can expect to see the handset on shelves any time soon.
While bringing the iPhone 3G to Korea may seem like an uphill battle, it just might be one that could pay off in the end. If the device goes head to head with local handset manufacturers Samsung and LG, and succeeds, it will stand as a true triumph of the impact that Apple is making on the mobile market.
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