Samsung Heir Requested Blocking iPhone Release in Korea
Lee Jae-yong, the only son of former Samsung Group chairman Lee Kun-hee, requested that SK Group chairman, Chey Tae-won, refuse to import the Apple iPhone through SK Telecom, one of the subsidiaries of SK Group. This was reported in a local newspaper, Hankookilbo. However, the newspaper added that both companies declined to confirm the rumor.
Even though SK Telecom CEO, Jung Man-won, tried to adopt the iPhone, Lee’s special demand worked and the No. 2 mobile carrier, KT, released the iPhone exclusively last November.
In August, SmartphoneNow reported the rumor and quoted a source who met with an Apple representative, saying, “Apple insisted that a Korean company had tried to block the launch of the iPhone in Korea.” Samsung is suspected to be the “Korean company.”
Junior Lee seemed to be concerned of the impact on Samsung Electronics’ domestic position when the iPhone comes out via the No. 1 mobile carrier, SK Telecom, which controls over 50 percent of the local mobile market, the local daily said.
To relieve the iPhone’s impact, Samsung and SK Telecom hastened the launch of “T Omnia2,” based on a Windows Phone operating system, before the iPhone’s release, which meant the “T Omnia2 was being released earlier than scheduled. The “T Omnia2″ was lauched prior to not only the iPhone, but also other Omnia series phones: “Show Omnia” via KT and “OZ Omnia” via LG Telecom. With these efforts, Samsung’s “T Omnia2″ has sold 120,000 units, as compared with the iPhone sales in December at 150,000 units (excepting pre-order sales in November).
Samsung recently announced it secured 60 percent of market share with 210,000 units, offering among 350,000 units of the total smartphone market, in December. But the number is calculated as sell-out not sell-in. Sell-out means Samsung just provided smartphones to mobile operators; it does not mean users bought the smartphone. The iPhone has sold over 200,000 units since its debut in November.
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This action does not look good for Samsung. By Samsung trying to stop people buying an iPhone, it will only make people want an iPhone more.
The Windows Mobile phone that Samsung has been trying to sell, the ‘T Omnia2′ cannot compete against the iPhone, and Samsung must have known this.
These Windows Mobile phones come with a very old operating system, that belongs to a PDA from the 1990s. That’s why Windows Phones still use a stylus-pen instead of more modern finger touch. The kernel (the main part) of the Windows Mobile operating system has not been updated since 2004. Six years is a long time for a phone system to be stagnant, when the competition is moving forward.
The iPhone comes with a super-slick multi-touch interface. No stylus pens. Also, Android phones are finger touch. If Samsung wants to compete with iPhone, it must stop selling old technology stylus-pen phones based on Windows Mobile, like the ‘T Omnia2′ mentioned above.
I think Samsung knows this, as it has recently released 3 Android phones, the ‘Behold II’, the ‘Spica’, and the ‘Moment’. Samsung must rid itself of those old stylus phones, and use the more modern Android operating system (backed by Google).
“and “OZ Omnia” via SK Telecom.”
OZ Omnia was released via LG Telecom.
Thanks, Daniel.
I also remember Samsung showing TV Ads of their Omnia phone where they had copied UI similar to iphone with exact icons, apps, music, etc. They had gone crazy when KT released iphone and they were trying to divert customers to their products by hook or crook.
This was a very bad move by samsung. Thank God, iphone came here. I can have atleast one good phone here.