`Apple has no plan to sell iPhone in Korea`

The Korean unit of Apple Inc. yesterday denied rumors that the U.S. company may sell its sought-after new handset, 3G iPhone, in the Korean market."We do not have a plan to introduce the iPhone in Korea, at least for now, although Apple had talks with the nation`s three mobile carriers (SK Telecom, KTF and LG Telecom)," a spokesperson for Apple Computer Korea told The Korea Herald.Apple unveiled on June 9, its much-anticipated 3G iPhone which offers twice faster internet connectivity based on the three-generation wireless networks at half the price of the older iPhone.An 8 gigabyte model will sell for $199 and a 16 gigabyte model will go for $299. The new phones will be initially sold in 22 countries and regions; that number will be increased to 70 by the end of 2008, the company said. Korea was not included in the initial 22.Even before the launch, speculation was rife here that Korean carriers, interested in offering the iPhone, would soon be able to distribute the smart-phone in the local market.But industry experts were cautious about the prospect of the phone`s entry into the Korean market, mainly because of requirements for a Korean-made software standard, called WIPI, or Wireless Internet Platform for Interoperability.Under local rules, all internet-enabled mobile phones are required to carry WIPI, which global phone manufacturers complain is costly and time-consuming.A spokesperson with KTF said "little headway has been made regarding the distribution of the iPhone in Korea," although talks are underway between KTF and Apple regarding iPhone sales.SK Telecom, the top mobile carrier, said that it is not in talks with Apple concerning iPhone sales.Industry observers said KTF, the country`s No. 2 mobile carrier, is eager to offer the iPhone to gain the upper hand in the growing 3G market.KTF lacks the popular 3G mobile phones that will help the company to lure more customers. Latecomers to the 3G market - SK Telecom and LG Telecom - threatened KTF`s lead after they launched touch-screen phones, which have soared in popularity.Word has it that KTF may introduce the iPhone with the help of its Japanese partner, NTT DoCoMo, Japan`s top wireless carrier, which is interested in distributing the handset. But Apple recently formed a tie-up with Japan`s No. 3 carrier, Softbank Corp., to sell its iPhone in Japan, although there remains a possibility that the U.S. computer giant will form a partnership with NTT DoCoMo as well.Meanwhile, mobile market analysts said yesterday that the surprisingly low price of the upgraded iPhone would put pressure on other makers of smart phones, including Samsung Electronics Co."It is a very aggressive price point and it is going to do some damage to the other players in the market," Gartner analyst Van Baker was quoted as saying by the AFP.In fact, the $199 price tag for the 3G iPhone appears to have caught Samsung Electronics Co. off guard.A day earlier than the iPhone`s unveiling in San Francisco, the Korean electronics giant introduced Omnia, a versatile high-end smart phone which it hopes will challenge Apple`s new phone.The price has yet to be fixed, but company officials said it is likely to be one of the most expensive handsets offered by Samsung and will cost more than $400.However, Song Myung-sub, an analyst at CJ Investment & Securities Co., said that the impact which the iPhone may have on the bottom line of Korean cell phone makers will be minimal, even if Apple sells as much it hopes to.Apple aims to sell 10 million units of the 3G iPhone by the end of this year, which is equivalent to about 1 percent of global cell phone sales.

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