iPhone 5 makes debut in Korea
People who pre-ordered the iPhone 5 online from KT line up for a launch event at Olleh Square in Gwanghwamun, Friday. Courtesy of KT
KT, SKT expect sales boost with launch of iPhone 5
By Kim Yoo-chul
Apple’s much-awaited iPhone 5 made its belated debut in Korea Friday via the American firm’s two authorized local partners, KT and SK Telecom.
KT, the first carrier here to sell Apple’s i-devices, said it received more than 130,000 pre-orders in about two hours last Friday, while the 50,000 handsets that SK Telecom had allotted for online pre-orders sold out in the same time.
The iPhone 5 is expected to boost the number of long-term evolution (LTE) customers while the release means another round of the ongoing subsidy war here.
The carriers are positive about the sales outlook for the latest Apple phone as its launching comes amid explosive demand for LTE devices.
A senior executive at KT, the nation’s second-biggest mobile carrier, hopes that growing confidence over the management of Apple’s latest iPhone means increased sales.
KT began selling the iPhone 5 from early Friday via its authorized distributors across the country.
``KT is highly positive to become the nation’s No. 2 LTE service provider by the first half of next year. Hopes are running high that the Apple smartphone will significantly help us increase our share,’’ said Pyo Hyun-myung, president of the company’s personal customer group, in a meeting with reporters at KT’s main office in Gwanghwamun, Friday morning.
Pyo unusually revealed that the company has 2.5 million customers with iPhones and stressed about 75 percent of the total pre-orders, including those with rival SK Telecom, opted for KT as their carrier for the Apple handset.
``Right here, I guarantee that we will provide high-quality LTE-related services for our iPhone users. KT is using 1.8-gigahertz as its spectrum band, which is the global standard, while we have 200,000 Wi-Fi points, meaning our LTE network is more stable than those of rival companies,’’ the KT executive said.
Korea’s top telecom carrier, SK, aims to attract 7 million LTE customers, followed by LG Uplus with 5 million and KT with 4 million by the end of the year. KT was initially late entering the LTE race but has been narrowing the gap.
To a question about any further advantages for his firm’s iPhone users, Pyo said, ``The iPhone 5 is just one model in our LTE smartphone lineup, therefore, there is no discrimination between iPhone users and others. No favors for iPhone users are expected.’’
Credit research firms and market analysts say KT will benefit most from the new iPhone.
Of KT’s 2.5 million iPhone users, up to 1.5 million are expected to upgrade to the latest model based on the number of customers whose mandatory subscription period will have expired by the end of the year.
When asked about its internal sales target for the new device, the executive declined to comment. ``But we don’t see any big mismatch between supply and demand,’’ said KT officials and industry executives.
SK Telecom started selling the iPhone 5 from late Thursday in a market dominated by Samsung phones _ only 11 percent or just 3.4 million of Korea’s 31.4 million smartphone users had iPhones as of October, according to Moody’s Credit Outlook.
With the latest iPhone, another round of competition is likely to force the operators to continue pursuing large promotions and this will lead to a further erosion of margins, which were already declining, said Moody’s.
``This is the thinnest iPhone in Apple’s phone-making history. As Apple’s first authorized partner to sell i-devices here, KT will try its best to steadily provide quality services,’’ Pyo said.