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Editorial: HTC's departure from South Korea proves a tough fight for foreign brands
HTC's closure of its South Korean office may seem yet another blow to the company this year, but don't be alarmed: we saw it coming. It's a given that Peter Chou's gang is cutting back in response to its recent weak performance, but the more interesting takeaway here is the fact that the South Korean smartphone market is one tough nut for foreign brands to crack open. Just walk into any carrier shop in Seoul and you'll see the shelves dominated by devices from Samsung, LG and Pantech. If you're lucky, you may spot the odd Sony, Motorola and HTC phones cowering in a corner. So why is that the case? Let's take a look at the how it all started.
iPhone coming to South Korea
After much delay, the iPhone is finally coming to South Korea. The Korea Communications Commission (KCC) had been requiring handsets to use the locally-built WIPI mobile platform. Earlier this week, that changed:"...considering global industry trends toward the use of general-purpose mobile operating systems, we concluded that there was a need to allow carriers the freedom to decide whether to use WIPI or not,'' said Shin Yong-sub, the director of KCC's policy bureau.This restriction prevented many foreign manufacturers, like Apple, from selling handsets in South Korea. So, what happens now? First off, it looks like carriers KTF and SK Telecom will be handling the iPhone in South Korea. Finally, would-be customers will still have to wait until next spring, as the rule requiring WIPI will be effective until April of 2009. But that's better than "never," right?[Via MacDailyNews]
