South Korea’s wireless kingpin SK Telecom (SKM) plans to sell more than 2 million smartphones in 2010. The operator also divulged its plan of unvieling several new handset models, including smartphones based on Google’s (GOOG) Android platform. This represents a part of the company’s effort to boost its presence in the rapidly growing mobile data service market. SK Telecom exited 2009 with roughly 420,000 smartphone users.
SK Telecom is expanding its handset portfolio to take on Apple’s (AAPL) iPhone which was launched by its rival KT Corp (KT) in November 2009. KT has already sold roughly 240,000 units of the iconic device. Entry of iPhone in the Korean wireless market has resulted in heightened price competition.
SK Telecom is warming up to introduce at least 15 smartphone models in 2010 including 13 Android-based handsets. Moreover, the company plans to roll out its own Wi-Fi (wireless broadband) network in key South Korean cities. SK Telecom targets an investment of KRW30 billion (US$27 million) in 2010 and KRW100 billion (US$90 million) in 2011 to build the Wi-Fi network.
While Motorola’s (MOT) Droid smartphone is expected to be one of SK Telecom’s near-term launches, the carrier is also negotiating with Research In Motion (RIMM) to market the new BlackBerry Storm 2 and BlackBerry Bold 9700 smartphones. Moreover, the company may also sell android phones of the leading Taiwanese smartphone manufacturer HTC.
With roughly 50.5% market share and 24 million customers, SK Telecom remains the leader in the Korean wireless market. However, competition has increased in the highly matured domestic wireless market following the consolidation of KT Corp and its wireless unit KT Freetel in June 2009 and is further exacerbated by the iPhone launch. As such, SK Telecom is facing greater challenges in retaining market share.
To protect its market share and boost ARPU, SK Telecom launched several handset models in 2009. The company also launched “T Store”, the first open mobile market in Korea, in September 2009. SK Telecom plans to add the Android application marketplace to T Store, which currently only offers applications for Windows Phone-based smartphones. The company’s new strategy for 2010 underscores its efforts to establish a stronger foothold in the Korean smartphone market.
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