Phone firms differ over which handsets will sell

With the introduction on Monday of mobile phone subsidies, tens of millions of consumers who had been holding off on buying a new handset are set to splurge. Although mobile service providers and handset makers are all rubbing their hands in anticipation of a sales boom, they are far from agreed on what kind of handsets consumers actually want. All three domestic providers ― SK Telecom Co., KTF Co. and LG Telecom Inc. ― have forecast that most customers will plump for low- to mid-price handsets, which retail for between 300,000 and 500,000 won, or around $308 to $513. A spokesman from SK, the nation’s top carrier, said, “The proportion of subsidies is higher on cheaper handsets than on pricey ones.” SK said that following consultations with manufacturers, it plans to cut prices further still by offering basic handsets shorn of functions such as digital multimedia broadcasting. The nation’s second-biggest mobile operator, KTF, said it is looking to bump up sales of phones priced between 300,000 and 400,000 won, while No. 3 LG is planning a promotional blitz on phones costing less than 300,000 won. But mobile phone manufacturers seem to be pinning their hopes on high-end handsets priced at 600,000 won or more. A spokesman for Samsung Electronics Co. said that the new subsidies were likely to result in a big increase in the sale of premium mobile phones. To meet this demand, Samsung is planning to release more DMB and slim phones, he added. A recent survey, albeit taken from a small sample, appears to back the projections of the phone makers. A poll of 560 members of online shopping mall Auction showed that over a third will buy DMB-equipped phones now that subsidies are on offer. Such handsets currently cost from 500,000 to 700,000 won. The next most popular phones were slim-slide handsets, or those fitted with satellite-based DMB, which boasts high-resolution video reception but requires expensive monthly subscription fees. by Lee Hee-sung, Seo Ji-eun