Business News :Korea Lagging behind
korea business news cell phone
Samsung. LG. Any cell phone uses would more likely than not be familiar with these two names, the two Korean giants in the cell phone market. However, where Korea used to be the digital trendsetter in the cell phone markets, now in the era of smartphones and apps Korea had apparently lagged behind its competitors.
Take the example of the recent popularity of the iPhone in Korea, where it sold some 200,000 phones in December alone – the best month ever in Korea for any model, beating out even the local models which had dominated over 80% of the Korean market. While Korea still holds strong in the hardware department – Samsung and LG, the no.2 and no.3 biggest global handset makers together account for nearly a third of the world’s mobile phones – it is not competing well in the software department – where the Korean businesses hold only 4% of the smartphone market.
This has led to a decline in profit for the Korean handset makers – although Samsung sold over 10 times as many cell phones as Apple last year, its earnings are much fewer due to the much slimmer profit margins of regular cell phones compared to smartphones like the popular iPhone or Blackberry – that had even resulted in a special cabinet meeting by the government to address the issue.
In response to these issues, Samsung and LG had said that they intend to expand their smartphone lineup in the upcoming years, as well as offer more applications that run in them. The company predicts that it will introduce about a dozen models this year alone. Despite all this however, the young Koreans themselves did not expect much from homegrown alternatives to Apple and Blackberry, in their own words, believing that the local producers lack the capability to create something that can compete with the well-established foreign products on such short notice.
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