ID :
211270
Wed, 10/05/2011 - 10:55
Auther :

(2nd LD) Apple's new iPhone fails to wow Korean fans but likely to hot up price war

(ATTN: TRIM para 2; CORRECTS name in para 4; ADDS more info in para 17)
By Lee Youkyung
SEOUL, Oct. 5 (Yonhap) -- Apple Inc. failed Wednesday to impress tech-savvy Korean fans with the new iPhone 4S, but the company made clear its intention to take on the enormous mass markets in Asia with cheaper iPhones.
Apple announced the iPhone 4S during the wee hours of Tuesday in Seoul, leaving some local fans glued to Twitter streams and blogs broadcasting live the highly awaited event in Cupertino, California.
A self-claimed Apple fan in Seoul, however, said he had looked forward to finally switching his old handset to the new iPhone and was let down.
"The first thing I did when getting out of bed this morning was to look up the iPhone news online," said Lee Taek-sang, a 27-year-old college student who owns three iPod models and the first iPad.
"I was hugely disappointed. I was expecting something groundbreaking, but it was just a souped-up version of the previous phone."
Apple packed the iPhone 4S with a new camera, a dual-core A5 chip and new voice technology. Those features give the upgraded gadget faster performance, better graphics and the ability to place voice commands to send text messages or to conduct Internet searches without lifting a finger.
But the updated iPhone fell short of wowing journalists, investors and fans, overseas media reports showed. Anticipation was high and speculation had been building up days before Apple's carefully concealed gathering at its headquarters in Cupertino.
"It was not bad compared with the iPhone one year ago, but audiences were disappointed because they were used to seeing Apple innovating," said Jeong Ji-hoon, director of the IT Convergence Center at South Korea's Kwandong University.
Apple introduced new features for its mobile software in the summer, including wireless backup and an online storage system that lets users easily access music and video files from multiple Apple devices. These new software features will be integrated into the new iPhone 4S.
The company's decision to slash the prices of previous iPhone models, however, may force rivals to reconsider their business strategies in Asia where mass smartphone markets are forecast to grow at the fastest pace in the world, according to watchers.
With a contract from wireless carriers, the iPhone 3GS will be free and the iPhone 4 will be available for a scant $99, Apple said.
"Apple has diversified its cheap iPhone lineup," said Jeong. "This will make it easy to introduce iPhones in more countries and boost unit sales."
Apple's chief executive officer Tim Cook made it clear that Apple is chasing after not only the high-end, premium smartphone market but also the mainstream segment.
Cook said that the iPhone controls a mere 5 percent of the mobile handset market worldwide and the way of drawing a boundary between smartphones and mobile handsets will be soon be rendered useless.
"We look at the entire market of handsets (instead of smartphones) because we believe over time that all handsets will become smartphones," Cook said. "One and a half billion units annually. It's an enormous opportunity for Apple."
The company is eyeing growth opportunities in China, a market that is equally envied by Samsung Electronics Co. and HTC Corp. It said it opened two new Apple stores in Hong Kong and Shanghai.
According to Hong Kong-based CLSA Asia-Pacific Markets, China's smartphone market is predicted to expand from 28 million units worth $7 billion last year to 199 million units representing $32 billion in value in 2014.
Such moves by Apple will intensify its battle with Samsung in the low- to mid-range smartphone segment.
Samsung, the world's No. 2 mobile-phone maker, is also aiming to expand its presence in markets like China and India with mass market smartphones. Meanwhile, it is entangled in more than a dozen lawsuits with Apple.
Apple's decision to leave out South Korea from the first 29 destinations for the iPhone 4S was another disappointment to Korean iPhone fans. Apple has sold more than 2.8 million iPhones in South Korea since 2009.
The U.S. company will start shipping the iPhone 4S to seven countries, including the United States and Japan, on Oct. 14. Another 22 countries will get the iPhone 4S from Oct. 28, Apple said.
South Korea was not on the list, spawning speculation that it will be one of some 70 countries where the iPhone 4S will be released before the end of the year.
Spokesmen from SK Telecom Co. and KT Corp. said they are in talks with Apple to offer the new iPhone but no decision has been made regarding the release dates.
ylee@yna.co.kr
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