By Kim Yoo-chul
Staff Reporter

SK Telecom has been facing a dilemma over the introduction of Apple's iconic iPhone as it seems highly unlikely the device will see huge sales in South Korea.

Higher subsidies, less specifications, a lack of clear customer service policies, and a disappointing debut in China are casting raising doubts regarding profitability.

Following in the footsteps of KT, SK Telecom, the nation's biggest telecom carrier, has already confirmed its plan to introduce the device this year. SK Telecom is controlling the local mobile carrier market with a market share of 50.5 percent.

"There are some pessimistic views over the marketability and profitability of the devices. Except for some 'Apple maniacs,' chances are low that the handsets will penetrate into the minds of general customers," an official at SK Telecom said, Monday.

"Samsung and LG Electronics have introducing tech-loaded, localized smartphone models at a competitive price. Amid such moves, more time will be needed for the final confirmation for the introduction," the official added.

"It's hard to say how sales will be in the future. It seems reasonable to take a wait-and-see attitude for a while."

Previously, SK Telecom dropped its earlier plan to introduce Nokia's smartphone, which was the move pushed by its local rival KT, mainly due to questions over its profitability.

KT is planning to introduce the iPhone in local market sometime late this month or next month. Industry analysts say it will compete with Samsung's strategic "OMNIA II" model, though its long-term effect will be limited.

KT is looking to introduce the iPhone with a price range between 750,000 won ($642) and 850,000 won ($727). In order to meet an internal sales target by Apple, KT is set to shoulder 430,000 won of the cost ― which has been viewed as "nonsense" by some watchers.

Although South Korea's top telecommunication regulator has cleared the sale of iPhones, Apple still hasn’t registered for a business entry, a spokesman at the Korea Communications Commission (KCC) said.

Watchers questioned whether the iPhone can successfully steal a significant market share in the South Korean market without establishing a sufficient commercial presence as Korean makers already have a solid reputation for quick and satisfactory services.

They pointed out that market entry is one thing and customer satisfaction is another, suggesting that Apple should adopt localized strategies.

One of the stumbling blocks for the iPhone has been its built-in mapping capabilities. Rules require providers to use local technology for location-based services. The KCC, however, exempted the iPhone from this rule.

Last week, iPhone has officially launched in China via China Unicom. But it failed to grab much attention from Chinese customers as its higher price and disabled WiFi tampered sales in the world's single largest mobile phone market.

According to figures released by China Unicom, it sold just 5,000 in the first weekend.

yckim@koreatimes.co.kr