Apple 2.0

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The iPhone's got Seoul


Apple's smartphone lands with a bang in Korea as pre-orders approach 65,000

Seoul iPhone launch. Photo: news.naver.com

After China's muted reception, Koreans greeted the launch of the iPhone Saturday in the style to which Apple (AAPL) has become accustomed. Hundreds of customers lined up, some as long as 26 hours in advance, to pick up the country's first batch of 1,000 iPhones amid helium-filled balloons, flashing strobe lights and a blaring rockabilly band.

According to the AP, KT Corp. (KTC), the country's second-largest carrier, had received an estimated 65,000 pre-orders — a number likely to loosen Samsung and LG Electronics' tight grip on the local mobile phone market. Between them, the two manufacturers (the world's No. 2 and No. 3 cellphone makers after Nokia), had sold some 400,000 smartphones in Korea at prices considerably higher than they charge in other countries.

In this market, the 32 GB iPhone 3GS — which KT is selling for $317 on a $38 per month two-year contract and giving away free with a $112/mos. contract — is a relative bargain. The Korea Times reports that Samsung has already lowered prices on some models in what looks like the start of a smartphone price war.

Korea, writes iPhonAsia's Dan Butterfield, "has a sophisticated group of consumers who are eager to take full advantage of iPhone’s superior user interface and application offerings."

And Apple was quick to show Koreans the flashy features only the iPhone can offer. Below: An iPhone ad already airing on local TV.

For video footage of the crowds and the countdown, see here.

See also:

[Follow Philip Elmer-DeWitt on Twitter @philiped]

16 Comments | Add a Comment | Email

iphone in korea will definitely succeed. trust me, i live here, ppl here will follow trend like they re picking up money in the street. it's crazy here already. im sure apple's brand image will also change dramatically in a positive way. good news for ppl who use IE6 as their browser EVERYDAY. its sickening.

Posted By jeremy, south korea: December 1, 2009 6:58 AM
Posted By Keyur Ofallon MO: November 29, 2009 11:59 PM

According to the 2009 CIA World Factbook, South Korea in July, 2009 had an estimated population of about 48.5 million, ranking it at 25th in terms of population size among nations around the world and between South Africa and Burma in that ranking. Comparatively, the US is ranked 3rd in the world with a July, 2009 population estimate of 307.2 million.

Based solely on population scale, pre-orders of about 65,000 in South Korea would equal pre-orders of about 412,000 in the United States.

Based on that scale I'd say the pre-order numbers are impressive for a territory being introduced to the 3G series iPhone for the first time but not a number I'd consider to be astonishing, surprising or in any way a "blockbuster" rollout of the device.

Apple does not have the same presence in South Korea it has in the United States or territories in western Europe. I suggest the pre-order numbers illustrate good initial demand for the device in a territory that represents new and long-term growth opportunities for Apple.

Posted By Robert Leitao (aka DawnTreader) Santa Clarita, CA: November 29, 2009 8:50 PM

However, the all-knowing pundits claim that the Korean mobile users are too sophisticated to want to use iPhones because the Samsung and LG counterparts are at least twice as useful and have far more hardware features than an iPhone. Streaming TV and 8 MP cameras are far more important than a few lousy apps. So, these 65,000 Koreans that ordered the iPhone are just the pent-up demand that will fizzle in about a week. After all, Koreans are way too smart to be fooled by typical iPhone hype.

Everyone who knows anything about smartphones is certain that the iPhone will be a failure in Korea so these advance sales indicate very little. The pundits believe Apple probably won't sell a million units in a month and anything less than that is deemed a failure.

Posted By iphonerulez, Brooklyn, New York: November 29, 2009 8:46 AM

The problem with China has been that the biggest phone service basically told the phone centers to take down any thing showing the iphone and saying if those centers are going to sell the iphone they would take their business away. I've been reading a lot about this and it might be a way to have an advantage as they are still negotiating with Apple.

Posted By Steve Stephens,Encino,Ca.: November 29, 2009 7:35 AM

65 000 pieces is a huge amount!
Good luck iPhone!

MatsRG
Myiphone

Posted By MatsRG, Uppsala, Sweden: November 29, 2009 6:45 AM

This is not surprising. The thing that worries Apple is China and its poor sales. 60.000 is nothing compared to what thay thought the figure was supposed to be in China. They better close the deal or the ship will pass. Apple cant stand loosing a market of 1.5B
Apple should give in to every demand they propose. The award will substantional :)

Posted By Andy: November 29, 2009 6:43 AM

No offense, but live TV is very passe' compared to all that you can do with the iPhone. That is trivial, in fact.

Posted By Brian: November 29, 2009 1:02 AM

Interesting note: Only Korean citizens (or F4 visa holders) may purchase the iPhone here. Furthermore, iPhones purchased outside of Korea (i.e. US, EU) will not be activated here, even if you already have an account with KT.

Posted By Jon, Seoul, Korea: November 28, 2009 10:41 PM

Phil,

Here's another video:

Posted By Ron Palo Alto CA: November 28, 2009 9:21 PM

well, not so fast. first of all, it's all curious. then boil over jaw will be cool down quickly. why iPhone is popular? think about it. it is working together with iTunes store (including app store). in Korea, there is iTunes store yet (they have app store though). oh, they don't even have direct Apple retail store as well. so I don't see it will be quickly spreading and popular. like somebody said here, Korean phones have more features, and cheaper.

Posted By Edward, San Francisco CA: November 28, 2009 9:05 PM

Hello from Tokyo! I have a 1 seg(digital TV) with my mobile phone here. It is a nice extra feature but is degraded by often lousy reception in even in large metro areas.As for the IC payment feature,many mobiles in Japan include this feature but in reality your rarely see it used. Most people I see on my daily commute just use the card version instead(men & women).In the last six months I have noticed more and more Japanese people on the trains holding an iphone.
We shouldnt expect it to appeal to everyone.

Posted By Rik,Tokyo, Japan: November 28, 2009 7:56 PM
Posted By Tom San Jose CA: November 28, 2009 6:07 PM

Korean cellphones have more features than the iphone, like watching live TV. I don't see the IPhone doing well.

Posted By Jon, Flushing, NY: November 28, 2009 4:48 PM

Nice article PED. You might want to change the sentence in the last paragraph.

From:
And Apple was quick show Koreans the flashy features only the iPhone can offer

To:
And Apple was quick to show Koreans the flashy features only the iPhone can offer.

BH

ex ped: Thanks for catching that. Fixed.

Posted By BH, Baltimore, mD: November 28, 2009 2:02 PM

+1 for headline!

Posted By RattyUK, Naples, Florida: November 28, 2009 10:01 AM
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Philip Elmer-DeWitt

Philip Elmer-DeWitt
Steve Jobs, goes the old joke at Apple, is surrounded by a reality distortion field; get too close and you might believe what he's saying. Apple has made believers out of millions of customers — and made a lot of investors rich — but Elmer-DeWitt believes that an ounce of skepticism never hurts when writing about the company. He should know. He's been covering Apple – and watching Steve Jobs operate — since 1982.
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