NoExplode
Joined: 15 Oct 2008
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 Posted: Tue Mar 03, 2009 4:05 am Post subject: |
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I'm so smart...I should be a reporter:
http://www.koreaherald.co.kr/NEWKHSITE/data/html_dir/2009/03/03/200903030069.asp
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Nokia and other foreign handset makers are scrambling to enter the Korean market, boosted by the government's deregulation drive. But they plan to bring mostly old handset models to the local market, raising doubts whether these products will lure tech-savvy Korean consumers.
On Thursday, Taiwanese handset manufacturer HTC launched its smartphone Touch Diamond in Korea, but the phone was introduced a year ago in the global market. HTC will soon release a sequel of the hit smartphone overseas.
Nokia, the world's No.1 handset maker, also plans to reenter the Korean market this year, with its smartphone 6210 Navigator which was launched in February 2008 globally. Not only is the phone an old model, the Navigator will come without navigation, as Korean law bans the outflow of local map data overseas, industry officials said.
A spokesperson of SK Telecom, which plans to sell the Navigator, said the phone may be renamed in Korea as its key feature will not be included in the product.
Sony Ericsson's smartphone Xperia will be launched in Korea this month via SK Telecom, one year after its global launch in Feburary last year.
KTF, the nation's No.2 mobile carrier, is considering rolling out the much-awaited iPhone, which was introduced in June last year overseas.
Critics questioned whether those old phones will be able to meet the demand of Korea's tech-savvy consumers.
"Domestic consumers are very sophisticated. They have high expectations of design and durability. They are highly receptive to state-of-the-art functions," an industry source said, asking not to be identified.
"I am skeptical of whether foreign mobile phones will be able to feed consumers' appetite," he said.
Foreign brands rushing into Korea
Foreign mobile phone makers are eyeing a bigger share of the Korean market as the country shifts to third-generation networks, and a key mobile software regulation will be lifted this year.
The entry of foreign handsets has been hampered by regulations requiring all cell phones to carry Korea's homegrown mobile platform, WIPI, short for Wireless Internet Platform for Interoperability. But the rule will be scrapped from April 1, allowing Nokia, Apple and other overseas handset makers to make inroads into the local market.
The nation is also shifting to 3G networks, which support 3G mobile phones manufactured by foreign companies. As to predecessor 2G networks, Korea chose CDMA as opposed to the global standard GSM, which was a hurdle for the entry of GSM-enabled phones.
The country's 3G subscriber base is growing, with nearly 17 million people or half of the nation's mobile subscribers signing up for 3G services that allow users to enjoy mobile internet and other multimedia services.
In particular, foreign vendors eye Korea's nascent, but growing smartphone market.
HTC also launched two smartphones - Touch Dual and Touch Diamond while Research In Motion introduced the Blackberry Bold for corporate users in Korea. Sony Ericsson also plans to sell its smartphone Xperia from March and Apple's iPhone may hit the local market after April.
Local companies have also jumped onto the smartphone bandwagon, with Samsung electronics launching T Omnia last year and LG Electronics introducing Incite last month.
The Korean market is dominated by local companies, with Samsung controlling nearly 50 percent of the market, followed by LG with 28 percent and Pantech and Curitel with 18 percent last year, according to industry sources.
U.S. handset maker Motorola has a market share of less than 10 percent.
Challenges await
But they face the formidable challenge of competing with Korean giants, which spend heavily on marketing. Foreign brands are expected to struggle to build consumer loyalty and brand recognition here as many Korean consumers are familiar mainly with Samsung and LG.
"Foreign brands have low brand awareness in Korea. I doubt whether they will be able to invest as much on marketing as domestic companies do," the industry source said. They also should address customer concerns about repair and after-sales services.
The plunging Korean won is another concern for foreign handset vendors as it raises the import prices of their products. The Korean won dived to an 11-year low against the U.S. dollar Friday on the global economic downturn.
Some observers expect foreign companies to carve out a niche in Korea with popular products such as the iPhone.
By Jin Hyun-joo
([email protected]) |
I love how skeptical they are...old phones old phones old phones...lumping the iphone in...and apparently not realizing that once they're in, intro-ing a new model isn't like moving heaven and earth. I'm sure they are starting with old models as they only half-believe Korea won't screw them again...for example, the Chaebols..I mean Korea makes it illegal to use navigation/GPS functions on foreign phones. 
WTF?
And the biggest news is that apparently KTF won the iPhone contract, but is only "considering" rolling it out...taking white envelopes from Samsung and LG, and couching it it speak about "well, we're not sure about demand..."
mark my words.
don't you all agree one of the newspapers here should hire me to be an investigative journalist? |
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