Foreign smartphone-makers are speeding up their expansion in the Korean market long dominated by local brands Samsung Electronics and LG Electronics.
A string of foreign smartphone brands Apple, Huawei, Sony and Blackberry have recently unveiled or plan to roll out their new devices here.
“Korea is a good test-bed for new smartphones because of its fast Internet speed and tech-savvy consumers,” said Chung Hei-sang, a senior researcher at Korea Economic Research Institute.
“The law to restrict phone subsidies, which makes it difficult for Samsung and LG difficult to cut costs, has opened more door for foreign low-budget phones to enter the local market,” he added.
Korea enforced a revised law in 2014 governing the sales and subsidies of mobile devices such as smartphones in an effort to eradicate malpractices by telecommunications operators.
China’s tech giant Huawei appears to be the biggest beneficiary. The firm has steadily gained brand recognition from Korean consumers by supplying its communications equipment to local carrier LG Uplus since 2013 and unveiling its smartphones later.
On Thursday, Huawei unveiled its smartphone H, which costs around 200,000 won – four times cheaper than the Galaxy Note 7 (1 million won) and V20 (900,000 won).
“We launch products based on the needs of local telecom operators. We also plan to launch premium phones if the needs grow,” a Huawei’s spokesperson told The Korea Herald.
Apple, BlackBerry and Sony also look to increase their share here.
Apple, which has the largest market share among foreign brands with around 20 percent, is set to roll out its new flagship smartphone iPhone 7 in the middle of October.
The new smartphone is expected to face tough competition with Samsung Electronics’ Galaxy Note 7 which resumes sales Saturday following the explosion issue and LG Electronics’ V20 which was rolled out on Thursday. BlackBerry, which pulled out of its business in Korea in 2013, recently returned with its new phone Priv. The new phone was first unveiled in the US market 2015 for $699 (around 800,000 won) but it is sold for around 600,000 won here.
Sony also plans to unveil its new Xperia XZ on Oct. 5, with the price expected to be at around 800,000 won.
“The entry of diverse foreign smartphone brands is making competition tougher in the local smartphone market. Local brands should be equipped with more consumer-friendly and functions to compete with low-budget foreign smartphones,” said Hong Wong-kyun, an analyst at KT research and economic institute.
By Shin Ji-hye (
shinjh@heraldcorp.com)
