Analyst: Apple iPhone’s impact will be bigger than Asian handset makers think

“Now that analysts and industry executives are getting their first good look at the iPhone, many here are concerned that Asian manufacturers may have underestimated the Apple threat,” Martin Fackler reports for The New York Times.

“Analysts and executives in South Korea say that the iPhone, with its full-scale Internet browser and distinctive touch screen with colorful icons, is more than just another souped-up cellphone. They fear this Silicon Valley challenger could leap past Asian makers into the age of digital convergence by combining personal computing and mobile technologies as no device has before,” Fackler reports.

“‘Apple’s impact will be bigger than Asian handset makers think,’ said Kim Yoon-ho, an analyst in Seoul at Prudential Securities. ‘The iPhone is different from previous mobile phones. It is the prototype of the future of mobile phones,'” Fackler reports. “The fear now is that Apple may repeat in wireless communications what it accomplished in portable music with the iPod: changing the industry. And just as when the iPod came out six years ago, big Asian manufacturers like Samsung Electronics and Sony could find themselves wondering what hit them, say analysts and industry executives.”

Full article here.


  1. Their fear is our joy…

    If a significant number of people could accurately predict the future, then we wouldn’t reward analysts, stockbrokers and CEOs for guessing.

    There are few true visionaries. Find them and follow them.

    MDN MW: ‘few’

  2. A cattle man out here in the west aint got no better friend than the iPhone. There was a time when the coyote made him his music and the prairie dog was his only peyote …I mean ringtone. Through the campfire I see tumbleweeds blowing in the wind on their way to Asia. I won’t have to wonder no more if there’s such a thing as an Asian cowgirl …now I just ask the iPhone. I’m thinking thoughts no cowboy ought ever to think in his whole damn life …and iPhone done it all ..and it aint through, yet. No, sirree …aint no ways through.

  3. The iPhone is further proof of the old saying, “It’s not what you have, but how you use it that’s important.” ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  4. A few things struck me funny with this article…

    “Samsung, South Korea’s biggest cellphone maker, will unveil its Ultra Smart F700,…”
    (If your phone is smart, our phone is “Ultra Smart!”)

    “We can take advantage of being a follower,” he said.” “It’s the same method Korean manufacturers have used before — quickly developing similar products that are cheaper but which contain a few more features than Apple, he said. That strategy has not diminished iPod’s dominance in the music-player market… (Great strategy?!)

    “For its part, Samsung says it is ready for Apple’s challenge, offering a far broader range of high-end products.” (Far broader range of crap is still crap.)

    ““Tech-wise, the iPhone is not so advanced,” said S. Jay Yim, vice president of overseas marketing at Pantech. “But Apple makes up for that in content and software.” (What exactly is he saying here? The iPhone is not advanced but Apple makes it advanced?—We’ll forget the fact that this “expert’s” company, Pantech, recently underwent a bank-led revamping…)

    Which is to say, they still don’t get it. If they couldn’t copy the iPod after six years, (with it’s ridiculously simple interfaceand tech) they will never even come close to the iPhone for the next decade.

  5. Is anyone else getting the sense that the iPhone really can do all those things attributed to Chuck Norris? I can see the t-shirts now…

    “iPhone can divide by zero.”

    MW: start… Time to start a new internet meme.

  6. @trottier,

    “It helps that only Apple has a full fledged OS to work from … tough for the others to whip one up.”

    You nailed it. OS X is the secret sauce and no amount of posturing by the competition can save their sorry asses from being crushed by this superior OS. It took Apple about a decade of development — including the time spent at NeXT to develop and refine OS X.

    First, competitors will have to “get it” to solve the right problem. Then they will have to develop a competing OS and all of the software stacks – including the interface stack — that make OS X such a winner. It will take many years and big bucks.

    The competition is fscked.

  7. Once again, Apple shows the advantage of controlling the software and hardware and interface to the computer (iTunes). It will be almost impossible for competitors to match it. All they can do is rely on Microsoft to supply Windows Mobile. No matter how good they make the hardware, it will always be stuck with inferior software, whether it’s Windows Mobile or some other choice. Just like in the personal computer world…

  8. I said from the day the iPhone was announced that Samsung posed the greatest threat. You’ll see soon. Nobody can move as quickly as they do when it comes to mobile phones.

    The Koreans are coming.

  9. R2-D2
    The problem that they face is 3 fold
    1) OS X running the phone
    2) iTunes Integration
    3) Patents all over this device.
    I am not saying it’s impossible, however, it’s pretty unlikely.

  10. @ChrissyOne
    You are broad and blonde to booth, what do you know about Asian “prayers” – Freudian or not , most Asians and Aseans are Animist and will not really be praying, so too the Buddhist. Either you are going to Dvorakian or trolling with a statement like that. Lip-gloss time grrl

    MDN – late , like are you late?

  11. I agree that it won’t be as complete a system, particularly with OS X and iTunes. In fact there probably won’t be an ecosystem at all with most competing products.

    However, Samsung can get close, likely even surpassing the iPhone on other fronts for a cheaper price tag. In this country, that’s more than good enough.

    But most important of all is that Samsung will be able to create products for every carrier. The iPhone isn’t the iPod where I can purchase it no strings attached. As long as Apple has to drag AT&T behind them like dead weight, they’ll be at a disadvantage no matter how great the phones are. Many don’t want to leave their carrier for a phone and will gladly settle with what comes close if it’s their only option as a person who’s happy with their Verizon, T-Mobile, Sprint service and plan.

    Idiots cite no 3G, no MMS, no whatever feature they can think of as the iPhone’s greatest disadvantage. No, the iPhone’s biggest con is the partner that it relies on. There’s a void for people who want an iPhone but are hesitant to become an AT&T customer (like me) and it will soon be exploited.

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