14 DAY TRIAL // Apple's iPhone, the most popular handset available on the market at the moment, is set to become available on the South Korean mobile phone market as soon as today. Not only does its arrival offer users in the country the possibility to choose yet another appealing device, beside those already present on the market, but it is also expected to determine other handset vendors to lower the price tags for their devices.
According to a recent article on Korea Times, the iPhone is expected to spur price cuts for mobile phones delivered to the local market by handset vendors like Samsung Electronics or LG Electronics. Moreover, it seems that the availability of Apple's iconic device via KT is also expected to offer the wireless carrier the possibility to become more competitive against rival SK Telecom, the largest operator in the country.
The new site say that KT is estimated to have received around 50,000 pre-orders for the handset already, turning the iPhone into the most popular handset that comes to the South Korean market from outside the country. The price tag for the 32 GB iPhone 3GS has been set at 369,000 won (around $317) for those willing to sign for a contract agreement on a 45,000 won (about $38) per month.
Moreover, the wireless carrier will have the iPhone available for around $225 (264,000 won) upon the signing of a contract on a $55 (65,000 won) per month plan, and for free on the $112 (132,000 won) price plan. Additionally, the price tag for the 8-gigabtye iPhones is said to have been set at 132,000 won (around $112) on the 45,000 won (about $38) monthly plan.
The said price war seems to have started already, and SK Telecom performed price cuts for some of its handsets. Among them, the flagship Samsung T-Omnia II, previously priced at 924,000 won (about $796) for the 4GB model, is now priced at 880,000 won (around $750). As for the 8GB version of the same handset, its price tag has been lowered to 924,000 won ($796), down from the 968,000 won (about $825) price tag it featured before. SK Telecom has the phone available for free on a 95,000 won ($81) per month price plan.
Other handset vendors present on the South Korea market are also expected to lower the price tag for their devices, including LG, Nokia, Sony Ericsson, and HTC. Not to mention that SK Telecom might come with additional appealing offers to counterbalance the iPhone popularity. “Mobile operators are now increasing their spending on handset subsidies on smart phones. Although the increasing costs are a concern, there is a reason to think that consumers will benefit,” said an official from the Korea Communications Commission (KCC)'s policy bureau, reports Korea Times.