KT Talks Trash About iPhone
By Kim Yoo-chul
Staff Reporter
What has caused KT's change of heart over the iPhone?
It may be because it's concerned that Apple's global hit will fizzle or because its trying to get better terms before its Korean launch.
Whatever the reasons may be, a senior KT official's putdown caused more than a few raised eyebrows.
"The iPhone is just one of KT's smartphone lineup," Kim Yeon-hak, the company's chief financial officer (CFO), said. "It is doubtful that it will make a major impact on the Korean smartphone market."
Apple's iPhone debut has been delayed several times amid speculation that the two sides have failed to work out their remaining differences.
Meanwhile, KT is talking with Samsung and LG about creating a Google-powered mobile phone.
"KT is concerned by the iPhone's sluggish performance in Japan," a high-ranking telecommunication industry source told The Korea Times, Tuesday.
KT spokesman declined to comment over the possible iPhone launch date.
The company's apparent reluctance about the iPhone may stem from a look back at recent history. Sony Ericsson and Motorola are among many foreign brands that have failed to gain marketing traction here.
Apple's iPhones were very successful in the North American and European markets as the devices have the capability to smoothly synchronize data with computers amid the industry's convergence trend.
However, it is the bottom line that worries Korean mobile carriers.
The iPhone's features may not be attractive enough for tech-savvy Korean consumers, who are accustomed to Samsung and LG models.
"From what I have learned so far, the iPhone is not something that is totally different from other smart models," Song Eun-mi, a 26-year-old undergraduate at Seoul's Dankook University said. Song identified herself as one of those who are ready to shell out to change to the latest model.
At the same time, iPhone faces a formidable foe in Samsung and LG to gain viable market share. The two account for a combined 85 percent in terms of market share.
The iPhone 3G debuted in July last year in Japan.
SoftBank has launched the two-year "iPhone for everybody" contract, giving away a promotional 8GB model.
Although Apple has sold more than 10 million worldwide, Japan presents a problem market for the firm because of hostility to non-domestic brands.