Local mobile telephony operator KT is releasing the much-awaited iPhone to local mobile users this week. / Korea Times |
By Kim Tong-hyung
Staff Reporter
No one would dispute that the iPhone, the most anticipated mobile device to hit the South Korean market in years, has the makings of becoming a game-changer in the local technology scene.
And considering the massive pre-launch hype for Apple's do-it-all ``smart'' phone, anything less than sparking the country's muted mobile Internet explosion would be considered a disappointment.
KT, the local mobile telephony carrier that is releasing the iPhone, said it had received more than 15,000 advanced orders for the handset after the first day of online reservations Sunday.
Considering that Apple is separately accepting reservations on its official online site, Frisbee (www.frisbeekorea.com), it looks like the iPhone has already booked the title as the country's most popular imported premium phone, although it won't be appearing on shelves until Saturday.
Sony-Ericsson's Xperia X1 has been considered a success here, despite its local carrier, SK Telecom, managing to sell just around 30,000 handsets.
KT projects the sales of iPhones to fall anywhere between 200,000 to 500,000, which would be more than enough to compete with the top products of local handset giants Samsung Electronics and LG Electronics.
However, guessing the number of iPhones to be sold in Korea is almost missing the point, industry analysts say.
The debut of the iPhone will fuel competition among handset vendors to develop smart phones with better capabilities and value for price.
This will be critical for mobile telephony carriers, who have yet to see significant return on their massive third-generation (3G) networks, and have been clamoring for sexier devices to convince subscribers to use their data networks more often.
Internet companies, which have yet to hit the gold trail in the mobile Internet market, will also benefit, as well as banks and credit card companies that are already gaining significant returns from investment in ``mobile wallets.''
``Rather than counting how many iPhones are sold here, the more interesting point is how the changes brought by its release will affect mobile telephony carriers and Internet content makers,'' said Kim Dong-joon, an analyst from Eugene Securities.
``The explosion of Korea's mobile Internet market will be dependent on some key factors, including the spread of smart phones, wireless carriers introducing more fixed-rate monthly data plans, the advancement of wireless networks and the increase of online applications stores. We seem to have reached a point where all four of these factors are clicking at the same time.''
Internet companies such as NHN, the operator of the popular Naver (www.naver.com) Web portal, and online game developers like Game Vil (www.gamevil.com), are hoping that the increasing use of smart phones will give them a new platform for revenue and add to their profit from search, advertising and fee-based services.
The finance industry is also betting heavily on the smart phone era. The Mobile Financial Council (MFC), a joint organization of 17 local banks and the Korea Financial Telecommunications and Clearings Institute (KFTC), on Monday announced plans for a standardized approach on smart phone-based mobile banking services.
The country's three mobile telephony carriers ― SK Telecom, KT and LG Telecom ― are generating around 2.8 trillion won in combined mobile data revenue.
With smart phones becoming more conventional, and a growing number of wireless users subscribing to fixed-rate data plans, the industry's mobile Internet revenue could grow up to as much as 11 trillion won by the end of next year, according to Eugene Securities' Kim.
The iPhone is distinctive for its advanced Internet capabilities such as e-mail, Web browsing and Wi-Fi connectivity, as well as the wealth of software provided through Apple's App Store.
The price of the 32-gigabyte iPhone 3GS was set at 369,000 won (about $341) for customers subscribing to monthly plans based on the basic rate of 45,000 won, KT said.
Subscribers paying 65,000 won in basic rates can buy the phone for 264,000 won, while premium users signing up for the monthly plan based on a 132,000 won basic rate, for more data usage and multimedia features, won't have to pay separately for the handset.
The eight-gigabyte model will be priced at 132,000 won for subscribers who signed the 45,000 won basic rate, while those who agree to more expensive monthly plans will get the handset for free.
thkim@koreatimes.co.kr
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