Jung Man-won
SK Telecom CEO |
By Kim Yoo-chul
Staff Reporter
Apple Inc. has to be concerned about its "bottom line" in the South Korean market.
Its 3G iPhones have failed to continue their sales momentum due to stiffer competition from rivals such as Samsung Electronics and LG Electronics following the iPhone's debut in November, last year.
Its sole South Korea partner KT Corp. has already clarified its strong interest in Google-powered Android phones, while Samsung and LG, as well as SK Telecom are rushing to join the "Android community."
Recent remarks by the chief executive of SK Telecom, the nation's biggest mobile carrier, also attacked the U.S. company.
Jung Man-won, CEO of SK Telecom has downplayed the effects of Apple's consumer products capitalizing on the iPhone.
The executive also said the nation's top mobile operator will increase its budgets and resources to boost competitiveness in the software-related segments such as content and mobile applications.
"Our biggest competitor is Google, not Apple Inc. As Google is using open-based multi sources for its digital devices, including Android phones, that company is more powerful," Jung told reporters during his participation at an industry forum, last week.
"It has been said that Apple is more competitive than Google. But that's only due to Apple's early debut of its products in the markets," according to the top company official.
The Android platform, developed by a massive cross-industry alliance led by the Internet giant Google, is based on open source Linux software that enables greater flexibility for programmers building applications and has features tailored to handsets.
Android is open and free to all handset makers, while Apple, Microsoft (MS) and Research in Motion (RIM) keep a hold on their operating systems.
Attracted by edges in content and mobile applications, major handset vendors including Nokia and the South Korean duo are revising up their sales target for Android phones, while the situation is not much different for SK Telecom.
iPhone: Falling Market Share
The remarks by Jung came at a time when Apple's iPhones are losing the momentum in overseas markets as rivals are steadily gaining a share.
According to the recent data from ABI Research, the Apple iPhone market share had lowered to 16.6 percent in the fourth quarter from 18.1 percent in the third quarter, globally.
In contrast, Apple rivals that gained in the market share in the quarter included Motorola and Nokia. Motorola wasn't in the game in the third quarter, but grabbed a 4 percent share with the introduction of its first Android platform device.
"Most other players remained roughly flat, with Apple losing the biggest market share in terms of percentage. Even if Apple widens its use of carriers, the company is unlikely to become the market leader. That's because the company prefers to trade market share for the larger profit margins it gets by targeting the high-end of the smartphone market," the research firm said.
SK Telecom plans to sell more than 2 million smartphones this year, and expects to have a lineup of 25 of such models in 2013, mostly running on the Android operating system, which will account for around 40 percent of its total handset offering.
To back up the move, SK Telecom has begun launching a massive marketing campaign via TV commercials and promotions and the company opened an Android-specialized site ― http://android.tworld.co.kr
Also KT, which is the exclusive partner with Apple for iPhones in Korea is also planning to expand the share of its smartphone models to more than 20 percent of its total handset offerings this year, but with 50 percent of its smart-phone lineup to run on Android.
"We don't much care about such negative comments by the SK Telecom CEO. KT will maintain a healthy partnership with Apple. But KT will put more focus on phones with the Android platform," a high-ranking KT executive said, asking not to be identified.
On the details of its new industrial productivity enhancement (IPE) strategy, Jung said, "We are in talks to develop new products and services for an eventual global advance."
Jung also said SK Telecom won't stop investing in the WiBro business and added the company will invest in the losing segment as planned.
"SK Telecom is having trouble with stock prices as the nation's telecommunication market is already saturated. We can't raise prices for consumers. That's why SK Telecom needs to focus on the software sector."
yckim@koreatimes.co.kr
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