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Considering the flaws and the entire product,
there's little doubt that the presence of the iPhone has significantly impacted the electronics market the world over. In November, Young Nam, CEO of LG Electronics, the world's third-largest producer of mobile phones, was confidently stating that smartphones would be his company's focus, and that he considered the company's true rivals to be the iPhone, Blackberry and the products by Palm Inc.
However, LG has no smartphones that can compete with the iPhone's name recognition, and sales of its flagship VX8500, better known as Chocolate, were cut nearly in half within a month of the iPhone's release here. At the same time, Samsung's Omnia2 smartphone kept pace with the iPhone, but not before a serious readjustment: The Wall Street Journal reported that an Omnia2 phone would be free for those who bought an $80 monthly plan from SKT, the Omnia2's distributor, and the price for some plans were reduced by as much as two-thirds.
More recently, the Ministry of Strategy and Finance of different Asian countries launched a mobile glossary app for iPhone users that may have proven a game-changer in the smartphone market. The app, which explains 2,500 economy- related terms in different Asian languages and English acronyms, was downloaded by 150,000 users in its first month of use, The Herald reported. That total may be equivalent to as much as 50 percent of all iPhone users in Korea alone at the time.
The app, which allows users to request that words they cannot find be added, was to be updated with an additional 200 words at the end of March. It proved so popular, in fact, that users of the Omnia2 and other smartphones began clamoring for it. In response, the ministry said it would add the app for Samsung's phone, as well as for those that use Google's Android operating system.
The different governments of Asian countries may also have hindered the iPhone's competitors through its identity verification system, a law which requires major portal sites in Korea and Japan to confirm their identities, such as through residence registration numbers. This was done to crack down on China, Japan and Korea's notorious problem with slanderous online comments left on message boards.
It had unintended consequences, though, in that most smartphone users cannot upload videos or post comments on YouTube. Some Asian Daily papers recently reported that this does not hinder iPhone users at all, as Apple does not limit the functions of its products based on legal issues of a particular nation where they are sold. Contrast that with Google Inc., developers of the Android operating system – and You- Tube's parent company – who have deferred to China, Japan and Korea's legal requirements. This means that phones using the Android operating system, particularly the Motoroi, won't be able to upload their own content on YouTube or leave comments on videos.
Market watchers here may remember 2010 as a watershed year in Asian electronics, as the iPhone appears to be changing how business is done here. That doesn't change the adaptability – or the determination – of Asian companies, particularly Samsung and LG, who can be expected to counter Apple’s encroachment onto their territory.
