Samsung and Apple's iPhone

In an earlier post, I posed the following question for readers of this blog.  How could South Korea, while possessing arguably the most advanced and dense digital networks of any nation in the world, be a laggard (80 or so other nations preceded it) in the adoption of the Apple iPhone and even Android-based "smart phones"?   Based on a recent article in the Korea Times, I am now tempted to propose a one word answer that explains the single biggest reason for the delay:  Samsung.   According to the article, KT's introduction of the iPhone in Korea created a rift between Samsung and KT, which continues to this day. Among other key points are the following:

• The immense buzz generated by the iPhone contrasted starkly with the paucity of excitement about Samsung's Omnia II, which had previously been proclaimed as an "iPhone killer."


• The iPhone has been selling about 4,000 units per day and its sales exceed those of Samsung's Omnia II by a considerable margin.


• According to the report, Samsung has been channeling most of its new mobile phones toward SK Telecom, while providing lax technology support on the phones it offers to KT.  In particular, Samsung is directing its smartphone pipeline to SK Telecom, including its new Galaxy series which run on the Android platform.


• The iPhone's rise is an alarming development for Samsung because it poses the question of whether the company can adapt to a new mobile marketplace in which the focus is moving from hardware to software and services.

Image of Korea's Technology Level Trails Germany, Japan, U.S.

An interesting article in the Joongang Daily reports that the image of the technology level of Korean products trails that of Germany, the U.S. and Japan.  (click on the graphic at left to see a larger version) As readers will know from previous posts, I have a longstanding interest in the problem of national images--how they are formed, how they change and the influence they have upon foreign policy, to name just a few aspects of my interest.

Today's article is based on a 2009 report by the Korea Trade-Investment Promotion Agency.  It notes that if products of such advanced countries as the U.S., Japan and Germany are valued at $100 on average, South Korean products of the same quality are valued at $71.50.  The article notes that, although there has been an improvement in Korea's image over the past several years, the "Korea discount" is still there.  In other words, tension between South Korea and North Korea is still a major downside to consumer perceptions.  According to a KOTRA official, "In the survey, students and the general public outside the corporate realm linked South Korea more with the Korean War and North Korea's alleged nuclear weapons program than with technologies and economic development."  Finally, one in four people surveyed by KOTRA thought that Samsung was a Japanese brand.

Korea Still has World's Fastest Average Internet Speed

The latest report from Akamai, based on data for the fourth quarter of 2009, shows that South Korea still has, on average, the world's fastest internet connections.  This was the subject of an earlier post, based on data from the third quarter of last year.  Those who are interested in changes from quarter to quarter can read the report but the overall picture remains largely the same.  On a personal note, I continue to enjoy fast internet access, both at my desk and while on the move via my iPhone.