[Asia Economy Reporter Joeslgina] Apple's new smartphone, the 'iPhone 13,' began pre-orders in South Korea on the 1st. Ahead of the official launch on the 8th, the three major mobile carriers and unlocked channels are competing to attract customers by offering gifts worth hundreds of thousands of won, such as the wireless earphones 'AirPods Pro,' and cashback benefits. In the U.S. and other countries where the first phase of release occurred, some models are already experiencing delivery delays of up to four weeks, raising concerns that a 'shortage phenomenon' may occur domestically as well.
According to the industry on the 1st, SK Telecom, KT, and LG Uplus will conduct pre-order sales of the iPhone 13 series for one week starting that day at their offline stores and official online malls.
The iPhone 13 series consists of four models: ▲iPhone 13 (6.1 inches) ▲iPhone 13 Mini (5.4 inches) ▲iPhone 13 Pro (6.1 inches) ▲iPhone 13 Pro Max (6.7 inches). While there are no significant external changes compared to the previous generation, it features the ‘A15 Bionic’ chip, which improves CPU processing performance by up to 50%, and upgraded camera specifications. The domestic retail prices start from ▲iPhone 13 Mini at 950,000 KRW ▲iPhone 13 at 1,090,000 KRW ▲iPhone 13 Pro at 1,350,000 KRW ▲iPhone 13 Pro Max at 1,490,000 KRW, depending on storage capacity.
◆SKT Leads with Accessories, Offers 'AirPods Pro'
SK Telecom has prepared differentiated benefits for iPhone customers who frequently use Apple accessories. Customers who purchase the iPhone 13 series with a new contract under the 5GX Platinum plan by November 30 will receive Bluetooth wireless earphones AirPods Pro and a MagSafe Duo charger for free. Under the 5GX Platinum promotion, customers who newly subscribe or renew their contract and purchase AirPods Pro and the MagSafe Duo charger on installment will receive a full discount on the installment amount from SK Telecom.
SK Telecom also organized an event linked to its subscription service ‘T Universe.’ Until October 31, customers who subscribe to the subscription package product ‘Universe Pass’ will be given a 10,000 KRW discount coupon for iPhone accessories on a first-come, first-served basis. Additionally, from October 8 to 31, a prize event will be held for ‘Universe Pass’ subscribers. Through a draw, 1,313 winners will receive prizes such as ▲Samsung Bespoke Cube Refrigerator ▲Baskin Robbins Block Pack.
To ensure customers receive their devices as early as possible, ‘early morning delivery’ and ‘same-day courier’ services are also provided. All customers who pre-ordered through the T Direct Shop in the first phase will receive their devices on the launch day, the 8th. For customers who want to purchase at a lower price, partnership benefits offering discounts up to 600,000 KRW are available in collaboration with four credit card companies: Shinhan Card, Woori Card, Hana Card, and Lotte Card.
Furthermore, customers who return their used iPhones through T World’s T Manager or Mintit Safe Trade Kiosk can receive compensation worth approximately 500,000 KRW based on the iPhone 11 Pro 256GB model via T Safe Compensation (trade-in program). The ‘5GX iPhone 13 Club’ was also launched, which offers compensation of half the retail price when upgrading to the next device.
◆"Switch to the New iPhone" KT Launches Subscription Program
KT has introduced a ‘subscription program’ that allows Apple enthusiasts to switch to the new iPhone every year. Similar to content or membership subscriptions, users pay a fixed monthly fee to use the iPhone 13 for a certain period and then return it. The fee varies depending on the selected device and is about 15% cheaper than a 24-month installment plan.
KT also operates a limited-time ‘AirPods Choice’ promotion, allowing Apple users to use AirPods Pro. Customers subscribing to the ‘AirPods Choice Special (110,000 KRW)’ or ‘AirPods Choice Premium (130,000 KRW)’ plans receive monthly discounts on AirPods Pro installments. The AirPods Pro retail price at KT Shop is 246,950 KRW. The promotion runs until October 31 or until 30,000 subscribers are reached.
‘iPhone Mania’ customers who have changed devices four or more times with KT’s Apple iPhone series receive additional benefits. Among ‘iPhone Mania’ customers who pre-ordered the iPhone 13 at KT Shop, 1,300 will be selected by lottery to receive delivery on the launch day. Customers residing in Seoul can receive their devices at dawn through midnight delivery, while customers in other regions will receive same-day delivery.
Benefits are also provided for 10-20-year-old customers who frequently use iPhones. New or device-changing customers using the 5G Y Teen plan (for teenagers) will receive double the basic data for up to six months after subscribing. Additionally, KT Apple AS Centers offer iPhone 13 repair discounts. Customers who activate iPhone 13 by October 13 can receive up to a 30% discount (20% KT membership discount + 10% Apple event discount) plus an additional 10,000 KRW discount until the end of next year.
◆LG Uplus Competes on Cost-Effectiveness... "Grab Cashback and Discount Coupons"
LG Uplus offers 5G unlimited data plans at reasonable prices. For example, the ‘5G Premier Essential (85,000 KRW/month)’ plan provides a total discount of up to 66,500 KRW per month, including a 25% selection discount (21,250 KRW), U+ Together bundle discount (up to 20,000 KRW), Premier plan contract discount (5,250 KRW), and partner card discounts (up to 20,000 KRW), allowing customers to enjoy a 5G unlimited plan for just 18,500 KRW per month.
Customers who subscribe through U Shop can additionally receive shopping coupon pack benefits. By choosing one of eight options such as Naver Pay or Smile Cash, they can receive monthly discount coupons worth up to 7,500 KRW for 24 months, totaling up to 180,000 KRW in benefits.
During the pre-order period, 130 customers who apply first daily at 1 PM will receive a 50% cashback on the purchase price of the Apple Watch SE. Customers who do not win the draw but activate the iPhone 13 after participating in the event will receive a 13,000 KRW cashback.
LG Uplus will also launch the ‘AirPods Pack,’ offering Apple wireless earphones ‘AirPods with wired charging case model’ as a ‘Category Pack’ benefit for customers using the ‘5G Premier Plus (105,000 KRW/month, VAT included)’ plan or higher starting on the 8th. Additionally, the ‘U+ Free Phone Replacement’ service improves issues such as inconvenient repairs and high repair costs, which were common complaints among iPhone users. This service allows customers to quickly and affordably switch to their desired phone, not only for simple color changes but also upgrading from budget models to premium models based on the same retail price.
Moreover, due to the high preference for unlocked purchases of iPhones, the budget phone industry and e-commerce sectors like Coupang are expected to fiercely compete for customers. Since iPhones have relatively low official subsidies, there is less incentive to purchase through carriers. Furthermore, due to the cost burden and quality concerns of 5G plans, more users are preferring budget phones or LTE plans.
◆High Expectations... Semiconductor Supply Shortage Predicts 'Shortage Phenomenon' for Some Models
The industry expresses high expectations for the success of the iPhone 13. The strong loyalty of Apple fans and the still-growing 5G penetration rate are positive factors. It is anticipated that replacement demand will surge for the iPhone 13, Apple’s second 5G-supported model. Korea Investment & Securities forecasts that the expected shipment volume of the iPhone 13 series this year will be 77 million units, a 21.9% increase over the sales of the iPhone 12 series.
In terms of volume, how much the iPhone 13 can fill the gap left by the ‘hero’ Galaxy Note series, which had cumulative sales of 10 million units per series, is also considered a factor that will determine the success of the iPhone 13. Apple is intensifying efforts to expand its distribution channels targeting LG Electronics’ domestic market share of around 10%, following LG’s recent withdrawal from the mobile business. According to market research firm Counterpoint Research, Apple’s domestic smartphone market share was 20% as of last year.
Some predict that the supply of the iPhone 13 in South Korea will not be smooth, similar to Samsung Electronics’ ‘Galaxy Z Flip3,’ which has experienced shortages even a month after release. A representative from a dealership said, "Like the Z Flip3, it seems the iPhone 13 will not have sufficient stock."
In the U.S. and other countries where pre-orders started earlier than in Korea, shortages of the iPhone 13 series have already been confirmed. For the iPhone 13 Pro and iPhone 13 Pro Max models, it is reported that it takes up to four weeks to receive the product after pre-ordering. JP Morgan stated in a report, "Customers who pre-order online will have to wait four weeks for the Pro and Pro Max, and two weeks for the iPhone 13 to receive their products."
The supply shortage is expected to be most severe for the higher-end Pro Max model. According to market research firm Counterpoint Research, customers who purchased the Pro Max from Verizon in the U.S. on the 24th can receive it on October 15, three weeks later. During the same period, purchasing the Pro and Pro Max from Apple.com results in delivery dates extending into November.
This shortage phenomenon is interpreted as a result of the surge in smartphone replacement demand due to Apple’s aggressive trade-in and discount policies, combined with the global semiconductor supply shortage. Verizon pointed out, "There has been a simultaneous increase in demand and supply issues."
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