South Korea, one of the most advanced telecommunications market in the world today became the newest addition in iPhone's list of overseas markets.
The launch in the country comes amidst several apprehensions about how Apple will fare in the smartphone market dominated by Samsung and LG and also on the impact Apple's entry will have on the local market.
The South Korean market is heavily dominated by Samsung and LG who have among them sold over 80% of the 47 million handsets in the country. However, the domination comes more so as a result of the government's closed policies to protect domestic manufacturers than anything else. Apple which already enjoys a fan following among the South Korean iPod customers who see the iPod as a "fashion icon" should have little trouble establishing an iPhone market there. There are already 40,000 pre-orders for the iPhone.
Having said that, the company is also facing a few challenges already. According to a report on the Wall Street Journal, the South Korean media have been unduly critical of the iPhone, especially with regard to the product quality and post-sale customer care.
The Korean market is notorious for expensive gadgets and should be one of the few markets where Apple could be penetrating in with a price war strategy. KT corp, the carrier that is partnering Apple in South Korea shall be offering the iPhone on monthly usage plans ranging from $40 to $80. The cost of the iPhone itself shall range from $0 to $342 depending on the plan chosen. For a perspective, consider this: Omnia2, the newly launched smartphone from Samsung is available at a price close to $900. Samsung however has already responded to iPhone's launch by massively slashing the price of the $900 Omnia2 to around $300. The phone is also now available for free on the $80 monthly plan.
Will this launch be a hit? Early speculations are that Apple could manage to create a dent in the market share of Samsung and LG in the long term period. Despite the modernity in telecommunications infrastructure, the South Korean market has not been exposed to the app ecosystem, where Apple is an undisputed leader. The Apple App Store is already popular among the South Korean developers who have had significant success developing applications for iPod touch. With iPhone entering the market, the momentum is only starting to build.
As in most other markets, the mere availability of thousands of iPhone apps could turn out to be Apple's X factor. What is your take? Could Apple pull it off in South Korea? Please tell us in the comments.
[via WSJ, Associated Press]
apple could but it will be hard since lg and samsung are so dominant in south korean markets.