Budget smartphones filling gap left by premium phones in Korea

Korean tech firms and telecom operators are filling in the gap left by flagship smartphones with their low cost products. 

The next premium smartphones, including Samsung’s Galaxy S8 and LG’s G6, are scheduled to launch after February.

Samsung Electronics said it began sales its low cost Galaxy A5 on Thursday for 550,000 won ($467) in Korea. This is around half the price of its flagship smartphone Galaxy S series, which are sold for around 1 million won. 

Despite the low price, the device still features some premium technologies such as waterproof, dustproof, offline payment service Samsung Pay, fingerprint scanner and Always On Display -- which allow users to check the time and date even when the phone is not in use. Galaxy A5 also sports 16 million pixel front and rare cameras. 

Galaxy A5 (Samsung Electronics)

Samsung’s local rival LG Electronics also began selling its low-end smartphone LG X300, which costs 253,000 won. LG X300 is a follow-up model of X series which was first launched in March of last year. It sports 5 million pixel front and 13 million pixel rare cameras, which have Auto Shot Selfie function automatically recognizing the face to take the shots. 

Alongside the traditional smartphone makers, the nation’s three telecom operators SKT, KT and LG Uplus are also unveiling low-end phones in partnership with global tech firms. 

The nation’s largest mobile carrier SK Telecom partnered with Chinese tech firm TCL Alcatel to unveil its own smartphone Sol Prime earlier this month, which costs 433,400 won. The 5.5-inch device, which adopts 8 million pixel front and 16 million pixel rare cameras, is able to adjust the depth and wavelength of voice based on music genre. 

KT also launched a 2.4-inch Mini phone, made by the US startup Posh Mobile, which is the smallest smartphone here. The small device weighing only 52 grams costs 132,000 won. It only supports 3G (Third Generation) network instead of faster LTE (Long-Term Evolution) network. 

LG Uplus also unveiled Huawei’s P9, which costs 599,000 won. It has dual cameras, which have exclusive lens for black and white pictures. 

Industry watchers view the budget smartphone market has steadily increased since 2014 when the government began to limit smartphone subsidies. In the past, the domestic market was dominated by premium phones as customers were able to buy the flagship phones at lower costs with subsidies given by tech firms and telecom carriers. 

“Since the law implementation to restrict phone subsidies, the demand for affordable smartphones -- with decent design and functions -- has been growing among local customers,” Kim Jong-ki, director of Korea Institute for Industrial Economics & Trade’s ICT research division, told The Korea Herald. 

“The market is expected to become fiercer as telecom operators joined the race with their own devices with exclusive services,” Kim said.          
                  
By Shin Ji-hye(shinjh@heraldcorp.com)

LG to unveil G6 in Barcelona next month

LG Electronics is planning to unveil its next flagship smartphone model, likely to be the G6, at the Mobile World Congress at noon on Feb. 26.

On Thursday, the smartphone maker sent out an invitation to journalists around the world for the launch of a new smartphone in Barcelona next month.

An invitation for G6 launch (LG Electronics)

In the invitation, LG wrote “See More, Play More,” giving the implication its new product is focused on entertainment functions and user convenience. 

The G6 will have an 18:9 quad high-definition liquid crystal display, supplied by LG Display, with 564 pixels per inch. The new device’s display is expected to be 5.7-inch (14.5 centimeters) and feature Qualcomm’s 835 Snapdragon processor, according to industrial sources. 

LG emphasized the safety of its new product, seemingly aware of the Samsung Galaxy Note 7 debacle last year. 

“The upcoming smartphone will have a heat-pipe that will help lower heat, while enhancing safety of the device by conducting various quality tests in accordance with international standards,” the company said. 

It has also announced the introduction of an artificial intelligence technology to after-sales services for the newest device in order to provide better customer service tailored to their needs. 

Local sources say LG is making all-out efforts to get their money-losing smartphone business back on track with the new phone launch. 

The new G6 is forecast to be released March 10, about a month earlier than last year’s launch of the predecessor, while Samsung Electronics has delayed the Galaxy S8 launch to mid-April. 

By Song Su-hyun (song@heraldcorp.com)

Galaxy S8 may adopt largest ever 5.7-inch panel

Samsung Electronics is expected to adopt the largest panels for its upcoming Galaxy S series to be unveiled in April, according to multiple news reports Wednesday. 

(Samsung)

Galaxy S8 and S8 Plus will reportedly come with 5.7-inch (14.5-centimeter) and 6.2-inch (15.7-cm) panels, which are larger than their predecessors Galaxy S7 and S7 Edge, which came with 5.1-inch (13-cm) and 5.5-inch (14-cm) screens. 

The larger panels appear to be possible as the new devices will have the tiniest bezels -- the outside frame of a smartphone -- and feature more curved panels than the Galaxy S7 Edge, industry watchers said. Samsung is also expected to ditch the physical home button. 

The Galaxy S8 will also have upgraded camera functions, adding a front camera with an 8-megapixel camera and autofocus actuator. The autofocus actuator is especially helpful for taking selfies. This technology controls the len’s location and automatically adjusts its focus.

The new device will also have a drastic change in software, adopting an artificial intelligence assistant called Bixby, an upgraded version of its Siri-like S Voice. 

The tech firm said in November it was developing AI-based voice recognition technology for the Galaxy S8 in partnership with Viv Labs, which it acquired in October. This technology will enable users to send messages and search the internet through a voice function, Samsung said. 

“The AI-based smartphones will bring a significant change to user interface, by shifting the IT paradigm of touch-based research into a voice-recognition personal assistant,” said Lee Jeong, an analyst at Eugene Investment & Securities. 

The Galaxy S8 will also have an iris scanner, US audio firm Harman Kardon’s stereo speaker and a fingerprint scanner built into the display, according to industry sources. 

A Samsung official declined to comment on the dates and specifications of the new device. 

By Shin Ji-hye (shinjh@heraldcorp.com)

"애플, 10년간 1조달러 벌었다..아이폰은 역사상 가장 인기 제품"

아이폰, 10년간 누적 판매 12억대
아이폰 중심으로 iOS 생태계 확대
iOS 기기 17.5억대 판매…수익은 1조달러
아이폰8 대대적 변화…판매기록 경신 전망

iOS 모바일 기기 판매 현황(사진=Asymco)

[아시아경제 안하늘 기자]출시된 지 10년을 맞이한 애플 '아이폰'이 연내 누적 판매 12억대를 돌파할 전망이다. 아이폰은 역사상 가장 인기있는 전자 제품의 자리에 올랐다.

11일(현지시간) 시장조사 전문 블로그 미디어인 아심코(Asymco)는 이 같은 아이폰의 인기 덕분에 애플이 iOS라는 막강한 모바일 플랫폼을 구축했다고 밝혔다.

지난 2007년 처음 출시한 아이폰은 음악 감상, 인터넷, 전화를 하나의 기기에 담았다는 혁신성에 전 세계적인 주목을 받았다. 이후 출시한 아이폰 시리즈는 스마트폰이라는 새로운 시장을 열었고, 애플은 세계에서 가장 혁신적인 기업으로 꼽혔다.

아이폰을 바탕으로 같은 운영체제(OS)를 공유하는 아이팟 터치, 아이패드, 애플워치에 이어 애플TV까지 줄줄이 흥행하고 있다. 아심코는 올해까지 총 10년 간 iOS를 탑재하는 모바일 기기가 총 17억5000만대가 판매되고, 2018년 하반기에는 판매량이 20억대를 넘어설 것이라고 예측했다.

총 모바일 기기의 판매 수익은 올해 상반기 중 9조8000억달러가 넘어설 것으로 덧붙였다. 앱스토어 등 수수료 수익이 1000억달러를 넘어서면서 연내 애플이 iOS를 통해 거두는 총 수익이 1조달러(약 1200조원)를 무난히 돌파할 전망이다.

이와 함께 iOS를 통해 애플리케이션(앱)을 등록한 개발자들에게 돌아가는 수익도 올해 중 600억달러가 넘어설 것으로 예측된다.

iOS는 구글 안드로이드와 함께 가장 강력한 모바일 플랫폼으로 현재 이 OS가 탑재된 모바일 기기만 6억대, 하루 평균 80번 이상 사용되는 것으로 나타났다. 즉 iOS는 전 세계에서 하루에 총 480억번이 작동되는 셈이다.

한편 올해 하반기 출시되는 아이폰8(가칭)은 아이폰 10주년을 기념하는 제품으로 기대를 모으고 있다.

아직 구체적인 사양은 공개되지 않았지만 업계에서는 아이폰8에 곡면 OLED 패널이 탑재되며 지문 인식 시스템을 내장한 유리 디스플레이를 채택하는 등 대대적인 변화가 예상된다.

애플 전문 분석가로 유명한 KGI증권의 궈밍치 애널리스트는 최근 고객에게 보낸 메모에서 애플이 2017년 하반기에만 9000만에서 1억1000만개의 아이폰을 출하할 수 있을 것이라고 전망하기도 했다. 또 그는 2014년 하반기에 기록했던 아이폰6 판매량인 1억1300만대보다 더 많은 양이 출하될 것으로 추측하기도 했다. 아이폰6는 역대 아이폰 시리즈 중 가장 많이 판매된 모델이다.

Samsung, LG’s OLED dominance may last at least 5 years

The dominance of organic light-emitting diode panels by South Korean display makers Samsung Display and LG Display is expected to last for at least the next five years, despite aggressive investment by Chinese and Japanese firms, Korean analysts said Tuesday.

Amid growing demand for OLED panels from global smartphone makers -- including Apple, Huawei, Oppo and Vivo -- due to their flexible nature, Chinese and Japanese firms are making heavy investments in the market dominated by the two Korean firms. 

China’s tech giant BOE plans to invest around 8 trillion won ($6.6 billion) to mass produce OLEDs by 2019 on the back of government support. Another Chinese firm Ever Display is also establishing an OLED plant with an investment of around 4.6 trillion won.

Taiwan-based Hon Hai and its subsidiary Sharp reportedly plan to invest 1.3 trillion won, with the aim of supplying OLEDs to Apple. Japan Display also recently acquired Japanese OLED maker JOELD for around 12 billion won. 

Despite the aggressive push by the foreign firms, Korean experts predicted that the OLED dominance of Korean firms could last for a considerable period of time due to their technology advances. 

“Korean display makers’ OLED dominance may last at least five years due to the technology gap with Chinese and Japanese firms,” said Lee Chang-hee, a professor researching OLED technologies at Seoul National University.

“This applies to flat and flexible OLEDs in both smartphones and televisions,” he added. 
 

LG Display

Kim Hyun-jae, a professor at Yonsei University’s electronics engineering, said, “Chinese OLED makers are expected to take off at least four years later due to technical issues. Japanese firms -- which make smaller investments compared to Korean and Chinese firms -- may not survive because of economies of scale.”

Samsung Display is currently the biggest beneficiary of the growing OLED demand, with more than 95 percent of share in the global OLED market for smartphones. It will reportedly supply OLED panels for around 100 million units of Apple’s new iPhone 8 to be unveiled this autumn.

Samsung’s Korean rival LG Display is also fast shifting its investment from liquid crystal displays to OLEDs for smartphone panels. The firm is building OLED production facilities in Gumi and Paju with a total investment of 3.5 trillion won. LG, which is expected to supply OLEDs to Apple from 2018, is also closely working with the iPhone maker to develop foldable panels. 

“The OLED technology of Japanese and Chinese firms is at least three years behind Korean firms. Only Korean firms are expected to supply a meaningful amount of flexible OLED panels to Apple over the next three years,” said Kim Dong-won, an analyst at Hyundai Securities. 

Still, the Korean firms are not in a position to be complacent with the current favorable market conditions, they said. 

“It is true that the aggressive push by Chinese firms are becoming a threat in the mid-to-long term. We should make a leap forward with advanced technologies such as foldable panels to pull ahead of rivals,” said an anonymous official from Samsung Display. 

By 2019, 42 percent of total smartphones in the global market will use OLED panels, market research firm IHS Markit predicted. 

By Shin Ji-hye (shinjh@heraldcorp.com)

Samsung likely to unveil foldable phones in Q3: source

Samsung Electronics is highly likely to unveil foldable smartphones in the third quarter of this year, according to sources familiar with the matter. 

“Samsung is expected to roll out more than 100,000 units of fold-out devices in the third quarter,” a source told The Korea Herald. 

The smartphone, whose panels face outward upon folding, may be used as a 7-inch tablet when unfolded, he said. 

Samsung, had initially completed the development of fold-in phones that tuck the screen inside when folded. It began the development of fold-out technologies around August, deeming that users may find it inconvenient to unfold the phones every time they want to use them.

“Since the company already secured fold-in phone technology, it was not a big challenge to shift into the fold-out phones,” he said. 


Despite technical completion, Samsung Electronics has not made a final decision about whether they will unveil the device this year because of marketability and profitability issues, multiple sources said. 

“The final decision will be made after the personnel reshuffle of the company’s information technology and mobile communications unit is carried out,” the initial source said. 

Samsung Electronics’ executive-level reshuffle, which is normally done in December, has been delayed to February or March as the company is currently embroiled in the political scandal involving President Park Geun-hye and her confidante Choi Soon-sil. 

Samsung’s rival LG Electronics is also expected to produce more than 100,000 foldable devices in the fourth quarter, one of the sources said on condition of anonymity.

LG started the development of fold-out technology two to three years ago, and currently has more advanced technology than Samsung, the source said. 

Unlike Samsung, which is first adopting their new technology into its own products such as the Galaxy series, LG may use the technology for other global clients such as Apple or Huawei. 

Market research firm Strategy Analytics predicted in the latest report Samsung Electronics may unveil the world’s first foldable phones this year. It also predicted the foldable display market would reach 163 million units by 2022 from 2.7 million units this year. 

By Shin Ji-hye (shinjh@heraldcorp.com)

Analysts optimistic about LG’s mobile unit this year

LG Electronics is being pegged for a turnaround in mobile business this year thanks to a major restructuring of the mobile unit last year and its first-mover advantage, rolling out its flagship smartphone G6 early this year, according to local analysts. 

LG’s mobile communications unit had a tough year as the G6’s predecessor G5 failed to excite consumers. The unit is expected to post around 1.2 trillion won ($1 billion) in operating losses for 2016. 

Analysts predicted, however, LG could seize an opportunity this year by filling in the gap Samsung’s Note 7 left in the local market. It is slated to unveil G6 at the Mobile World Congress in February -- a month earlier than usual -- while Samsung is expected to delay the launch of its Galaxy S8 into April following the Note 7 fiasco. 

LG’s restructuring effort is also expected to pay off this year. The firm cut around 30 percent of employees at its money-losing mobile communications unit throughout last year. 

LG’s flagship smartphone G5 (LG Electronics)

“The operating loss of the mobile communications unit would drop up to 1 trillion won this year thanks to the restructuring of the unit and solid sales of its premium smartphone G6 -- around 5.5 million units,” said Kim Dong-won, an analyst at KB Investment & Securities. 

Lee Seung-woo, an analyst at IBK Investment & Securities said, “The deficit range in LG’s mobile unit would go down this year because of the reduction of fixed costs following restructuring, cost saving from streamlining products and improved platform efficiency.” 

The upcoming smartphone G6 is expected to use a removable battery, ditching the non-removable battery adopted in the G5 model. It is also reported to adopt a mobile payment system, dubbed LG Pay, using the Magnetic Secure Transmission solution, which is similar to Samsung Pay. The MST solution allows for easy payment by touching a smartphone to magnetic card readers used in most retail stores.

By Shin Ji-hye (shinjh@heraldcorp.com)