By Kim Yoo-chul
Staff Reporter
SK Telecom, the country's biggest mobile-phone carrier, is going all out to overthrow the reign of the Apple iPhone in the local mobile-phone market.
It remains to be seen whether its slew of premium handsets powered by the Google-backed Android operating system will be up for the task.
The intensifying smartphone war between Apple and Google is becoming cutthroat in Korea, turning into a fight of bragging rights between SK Telecom and bitter industry foe, KT, which managed to sell more than 500,000 iPhones in just four months into its release, at the end of March.
Of course, SK Telecom, the No. 1 wireless carrier that controls more than 50 percent of the country's mobile-phone users, isn't too happy about compromising some of its supremacy to the iPhone-wielding KT.
The carrier will release 10 new smartphones alone throughout June, a stark comparison to the struggles of KT, which has yet to secure a convincing in-house device as a follow-up to the iPhone.
Eight of SK Telecom's new smartphones will be powered by Android, including Samsung Electronics' Galaxy A and Galaxy S, Sony Ericsson's Xperia X10, HTC's Desire and Motorola's Droid.
Aside from the Android handsets, SK Telecom is also expecting significant demand for the new BlackBerry Bold 9700, especially from business users. The company will also feed its pipeline for Windows Mobile-based smartphones with HTC's HD2.
SK Telecom plans to sell more than 2 million smartphones by the end of the year and will have a lineup of 25 smartphone models by 2013, most of them running on the Android operating system, which will power 40 percent of its data-enabled handsets by then.
The company is also accelerating its marketing efforts for Android, launching massive television campaigns and a specialized Web site at Android.tworld.co.kr.
In a news conference in February, SK Telecom chief executive, Jung Man-won expressed confidence that the Android community, relying on open-source technology, will eventually gain the upper hand over Apple's iPhone and other upcoming mobile devices.
SK Telecom's backing of the Android handsets is alarming for KT, which appears to be in danger of being reduced to a one-trick pony.
KT is also hedging its bets on the Android community as well, but has thus far failed to secure intriguing devices, which is partially explained by the supposed backlash from Samsung Electronics and other handset vendors over its decision to bring the iPhone into Korea.
KT officials said that the number of smartphone models is not as important as the "quality" of the devices. The company said it is continuing to negotiate with local and overseas vendors to bulk up its smartphone lineup.
"The number of smartphones offered is a secondary consideration. How mobile users can efficiently use wireless data, which depends on the carrier's ability to provide competitive pricing and quality mobile Internet infrastructure, is much more important," said KT spokeswoman, Kim Yoon-jeong, stressing that KT's muscle in Wi-Fi zones will provide the company with a clear advantage in the smartphone wars against SK Telecom, which doesn't have much beyond its third-generation (3G) network.
Since it released the iPhone in November last year, KT admits it has been experiencing "serious difficulties" trying to add wealth to its smartphone lineup, with Samsung Electronics and other major vendors channeling their products through SK Telecom.
Industry watchers say Samsung was upset over falling shares in the local smartphone market after the iPhone's arrival. The partnership with Samsung and KT clearly seems to be deteriorating.
According to KT officials, local sales of iPhones are approaching 600,000, while the laborious marketing efforts by SK Telecom and Samsung have resulted in about 500,000 sales for Samsung's Omnia II, which was released earlier.
On the other hand, the partnership between Samsung and SK Telecom seems to be strengthening, with SK Telecom saying it has no plans to release an Apple mobile device yet.
"KT just introduced two sets of smartphones via LG Electronics and Nokia of Finland. It hasn't sealed a single contract with Samsung, pushing KT to find overseas handset makers," a KT executive told The Korea Times.
"It is difficult to say whether the partnership with Samsung and KT will be restored as it is common knowledge that KT has already been talking with Apple to introduce the U.S. consumer company's next-generation 4G iPhone," another industry watcher said.
Apple Korea's Steve Park declined to comment on the interest by Korean carriers to release Apple's next version of the iPhone, which may or may not be named the iPhone 4G, adding to his endless list of "no comments" to local reporters over the years.