KT Corp. to Challenge South Korea's Smartphone Market with Apple iPhone

Strategic Insights -

KT Corp., South Korea's largest broadband Internet operator, is set to disrupt the nation's smartphone market dominated by Samsung Electronics Co. and LG Electronics Inc. with the introduction of Apple Inc.'s iPhone. The official launch is scheduled for Saturday, 10 days after the Korea Communications Commission approved the sale of the device. This move marks a significant development in the South Korean mobile phone market, where about 46 million people out of a population of 48 million are already mobile-phone subscribers.

Key Takeaways:

  • KT Corp. will sell Apple iPhone handsets in South Korea, challenging the nation's smartphone market dominated by Samsung Electronics Co. and LG Electronics Inc.
  • The 32-gigabyte iPhone 3GS will be priced at 396,000 won ($341.30) for customers who subscribe with a monthly service fee of 45,000 won, while the price is 264,000 won for customers who subscribe with a monthly fee of 65,000 won.
  • The official debut of iPhone in South Korea comes 10 days after the nation's telecom regulator, the Korea Communications Commission, approved the sale of the device.
  • Apple's Korean unit officials were unavailable for comment on pricing and market strategies.
  • The introduction of iPhone in South Korea highlights the nation's tech-savvy culture, with about 46 million people out of a population of 48 million being mobile-phone subscribers.

Statistics:

  • 46 million: The number of mobile-phone subscribers in South Korea, representing about 96% of the population.
  • 48 million: The population of South Korea.
  • 10: The number of days between the Korea Communications Commission's approval and the official launch of iPhone in South Korea.
  • 396,000 won: The price of the 32-gigabyte iPhone 3GS for customers who subscribe with a monthly service fee of 45,000 won.
  • 264,000 won: The price of the 32-gigabyte iPhone 3GS for customers who subscribe with a monthly fee of 65,000 won.

Sources:

  • Yonhap News Agency (Nov. 22)
  • Korea Communications Commission (Web site)
  • Asia Pulse (Nov. 22)