Huawei starts selling budget smartphone
By Kim Yoo-chul
Huawei's X3
Chinese budget smartphone manufacturer Huawei Technologies said Monday that it will start selling its latest X3 smartphone in South Korea from Sept. 30.
The Chinese company said the X3 will be available through retail channels of Media Log, a mobile virtual network operator (MVNO) subsidiary of the affiliate.
Huawei has not revealed the retail price of the X3, which will be sold via LG Uplus, the nation's No. 3 mobile carrier. However, LG Uplus officials expect the device's retail price to be less than 500,000 won.
LG Uplus is the strongest ally of the Chinese firm using Huawei's fourth-generation network equipment at its faster mobile networks despite controversy surrounding safety in terms of data security.
Huawei is the latest overseas handset manufacturer. Sony of Japan recently released its high-end XPERIA Z3 smartphone priced at 800,000 won.
Under a new telecom act to be implemented next month, the nation's major mobile carriers are banned from providing subsidies beyond 350,000 won.
The new law is expected to boost sales of foreign handset makers as the limited subsidies will help the foreign brands.
In terms of hardware specifications, the Huawei phone has full high-definition viewing quality with a 5-inch screen. It will be powered by a Huawei-patented Kirin 920 octa-core processor with the Google Android operating system.
Huawei declined to comment on its sales target, but stressed the X3 would receive "positive consumer reaction" because of its affordable price.
Samsung Electronics controls 70 percent of the local market, followed by LG Electronics. Huawei is one of three foreign handset makers with Apple. Apple's local share is estimated at below 10 percent.
Lack of distribution channels and limited capability to provide subsidies have rendered foreign companies less competent.
In 2010, Taiwan's HTC folded its Korean business, while Motorola of the United States abandoned the Korean market.
Nokia and ZTE of China also quietly disappeared from here.