iPhone a deathblow to Samsung?
As KT begins to prepare for advanced orders of Apple’s iPhone on its official Web site, most Korean consumers think Samsung Electronics will be hard hit by the release of the iPhone in the local market.
SmartphoneNow(http://www.smartphonenow.kr), the intelligence channel for the Korean smartphone industry, first reported KT’s preparations for advanced orders of the iPhone after it discovered the source code listed within KT’s online store. According to the code on its Web site-which has not yet been released to the public-KT is taking steps to manage the “iPhone Advanced Order” volume (see the source code below for KT’s Web site).
According to a quick poll taken Monday on the SmartphoneNow Web site (http://www.smartphonenow.kr/archives/1258), when asked “Which mobile phone maker do you expect to be impacted the most by release of the iPhone in the local market,” 91%, or 536 out of 591 respondents answered “Samsung.” Another 4%-21 respondents-selected LG Electronics, followed by new foreign smartphone entrants, such as Nokia, RIM, HTC, and Sony Ericsson-all at 3%,, with Pantech Group and Motorola each at 2% and 1%.
One user commented on the poll, “The ‘iPhone Tsunami’ will sweep Samsung, which is why Samsung tried to lobby to prohibit the iPhone from entering the Korean market.” Another respondent left a message, “With iPhone launching in Korea, I expect it will be an occasion that may convince Samsung to stop stepping on the toes of Korean consumers.”
Notably, Samsung controls more than 50% of the local mobile phone market, and because of the government’s closed market policy, the company has maintained its dominance in the market without any difficulty. Clearly, one of the main reasons KT is seeking a highly competitive foreign mobile phone is to overcome Samsung’s control.
Meanwhile, SmartphoneNow quoted a source who recently met with Apple. “Apple insisted that a Korean company had tried to block the launch of the iPhone in Korea.”
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