By Kim Yoo-chul
Staff Reporter

Sony-Ericsson, a joint venture between Japan's Sony Corp. and Sweden's Ericsson AB, plans to introduce its first Android handset ― XPERIA X10 ― to the local market in May.

Officials at SK Telecom, the nation's top mobile carrier, said Tuesday that it plans to sell the phones in May at the earliest at affordable prices.

"We are in the final stages with Sony-Ericsson. But the anticipated release date will be set two months later," an SK executive told The Korea Times.

The plan came after Sony-Ericsson CEO Bert Nordberg said it wants to stay with all three mobile operating systems ― Microsoft Corp.'s Windows, Google Inc.'s Android and Symbian supported by Nokia ― to hedge its bets for smartphones and sustainable growth.

Analysts are welcoming the news by saying that the new XPERIA will give more options for local smartphone customers, who are waiting for more tech-loaded and cheaper models.

They say the XPERIA itself wouldn't be enough to successfully break the wall in the local handset market dominated by Samsung Electronics and LG Electronics, but the device will have some "ripple effects."

The XPERIA X10 is a handset that offers conceivable functions and features.

The technology basis, by which the functionality performs, is down to the use of a Qualcomm's QSD8250 snapdragon 1-gigahertz processor as well as Google's open-based mobile operating system, using version 1.6.

These two elements offer a fast processing capacity and a stable operating system.

The 8.0-megapixel camera phone, which is included within the package, also provides media playing capabilities via its MP3 player in addition to a range of online features such as Google search, maps and Gmail features as well as a YouTube feature, officials say.

Officials at Sony-Ericsson's Korean branch said the launch will come in the first half of this year, though they declined to confirm the May release.

Different Strategies

With the higher appetites for some stakes by Sony-Ericsson in the South Korean market, the world's top-tier foreign handset makers aim to defy their past difficulties in the world’s most wired country with a series of smartphone lineups.

The Korean market has well been regarded as "the tomb" for foreign handset makers as non-Korean manufacturers were having difficulties in after-sales channels, distribution and limited capabilities for massive promotions, analysts say.

South Korea's mobile phone market is one of the world’s most vibrant, with 45 million users in a population of 49 million.

Research firm ROA Group Korea earlier predicted that smartphone sales would more than triple to 1.85 million units in 2010, compared with 500,000 units last year. That would make up just some 10 percent of total handset sales in Korea.

"Foreign handset makers are actively riding on the recent frenzy as the local smartphone market is still in an infant stage. They are seeking for a second chance as Koreans are generally tech- and design-sensitive," Kim Dong-joon of Eugene Securities said.

Now, attention is being focused over strategies implemented by the two local mobile giants ― Samsung Electronics and LG Electronics.

Samsung, which trails the industry leader Nokia of Finland in handsets, is sticking to its "premium strategy" with pricey products equipped with the latest features.

In contrast, LG Electronics is hoping to hedge its bets by introducing less-pricey lineups considering the expansionary local smartphone sector.

LG, which scrapped its plan to develop its own mobile operating system unlike Samsung Electronics' Bada, will sell its first Android "LG KH5200" phones this week, which is the first time among local handset majors.

"The product offers basic smartphone-related features. The retail price has been set for some 600,000 won, a 40 percent cut from Samsung Electronics' OMNIA-branded smartphone model," an LG Electronics executive said.

"Thanks to higher expectations of our first Android phones, Samsung has been under way to guarantee the stability of its mobile operating system. We won't drastically cut the prices of the phones which are set to be released later this month," a Samsung Electronics spokesman said, adding the company needs greater sustainability.

yckim@koreatimes.co.kr