May 10, 2024

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[THE INVESTOR] Apple began taking preorders for its iPhone 8 and 8 Plus in Korea on Oct. 27 amid growing skepticism over whether local consumers can be enticed to buy them.

The top three mobile carriers SK Telecom, KT and LG Uplus started to accept preorders online, with prices of the 4.7-inch iPhone 8 and 5.5-inch iPhone 8 Plus starting from 936,000 won (US$828.66) and 1,077,900 won for the 64GB model. The two iPhone variants will be available in gray, silver and gold. 

Market watchers forecast that the iPhone, which has taken the lead in premium smartphone sector for years, will likely face a number of challenges in Korea, home to its rival Samsung Electronics.

First of all, growing concerns over the safety issues of the new iPhones are a major hurdle that Apple has to overcome to earn consumer trust. In some global markets, including India and China, Canada and Greece, reports of swelling batteries have surfaced, which has led Apple to investigate.

“The iPhone 8 is suffering lackluster sales performance overseas due to the swelling battery issue,” said an official from Korean Mobile Distributors Association, a group that represents handset retailers here.

The KMDA also urged Apple to prepare a set of compensation rules for Korean consumers in case swelling battery incidents take place in the future.

A report from US market research firm Localytics showed that Apple sold 189 million units of the iPhone 8 in the first month after its launch on Sept. 22, much lower than 350 million units of the preceding iPhone 7 in the first month.

Things seem not that different in Korea.

“Compared to its predecessor, the iPhone 8 seems to be less popular among Korean consumers as its preorders are only around 70 percent,” an industry source in the telecom sector said.

On the design front, the iPhone 8 duo, which look similar to the iPhone 7 and 7 Plus, are considered to lack a competitive edge over other premium phones, such as Samsung Galaxy S8 or Note 7, both of which feature a full-screen OLED display curved on sides.

Market analysts, including those from KGI Securities, also said the iPhone X, which will belatedly sport the OLED screen like the Samsung phones, has stolen the thunder from iPhone 8 models. The iPhone X will be released in some global markets on Nov. 3.

By Kim Young-won (wone0102@heraldcorp.com)