Tuesday, October 28, 2014

6 pre-orders of iPhone overwriting the Galaxy Note in Korea … 4 – Next INpact

The iPhone 6 and 6 Plus achieved record sales at Apple exceeding ten million orders in just three days. At this time, the firm had reason to celebrate as all markets were not yet open, especially in Asia. Now if we look at the numbers alone preorders, iPhone 6 achieves a breakthrough in South Korea. But, as we shall see, the devil is in the details.



Large slabs eagerly awaited

Apple was expected for some time on the field of large smartphones which screens at least exceed the 4.5 inches. The 4.7-inch iPhone seems to be a compromise designed to appeal to as many customers, while Model 6 Plus, with its 5.5-inch, aims to share fans’ phablettes “appeared with a niche the first Galaxy Note. If the smartphones are really successful, you do not know, however, which of the two models is the most sold, even if the iPhone 6 Plus favorite looks.

In imperturbable, iPhone is taking the screens 3.5 and 4 inches up again last year.



70 could therefore ask whether this choice was going to pay, especially in markets that largely favor the large slabs, such as South Korea. 000 iPhone 6 and 6 Plus pre-ordered during the first half hour

And indeed, pre-orders of the new iPhone have opened in the country last Friday. Analysts believe that the 100 000 barrier has been crossed. By contrast, the new flagship of Samsung also happened there about a month through a phase of pre-orders, which resulted in 30,000 copies sold. But not everything is so simple, even if some in the press do not hesitate to see a sign of upheaval in the established order.

And what order! According to the IBK Securities analyst firm, Samsung is the master in his house with 63% market share in Korea, far ahead of the second player, LG, with 22%. As for Apple, it has only 6% of units. Can we expect Apple to suddenly sees his right to break into a market in which the firm has limited power? It is not so obvious, although the fact that pre-orders are considered as excellent is already in itself a sign that a US company can enter a market that is usually the bastion of a particular company, Samsung here.

Watch out for numbers because everything remains to be done

But attention to the numbers. On the one hand, 100,000 units are only approximate. According to the Wall Street Journal, the only one which is certain, and that is excellent, from the two operators who market iPhone 6 : 50,000 units during the first half hour with KT, 20,000 in 20 minutes at LG Uplus. In addition, pre-orders continue until the effective provision of the new iPhone, Oct. 31.

On the other hand, the Galaxy Note 4 did indeed passed only 30 000 copies during the first weekend of preorders. But it should be noted that in the proposed three operators, Samsung had provided an opening stock of 10,000 units each. Indeed, within hours, the reserves were exhausted. In addition, the Galaxy Note 3 has sold 5 million copies in the first month, while the Galaxy Note 4 exceeded 4.5 million units over the same period. Be careful however, because unlike the previous model, the availability is fragmented and the smartphone is not yet on sale everywhere.

Still, one can be certain that 70,000 iPhone were sold during the whole first half hour. The Galaxy Note 4 clearly did not have the same rhythm: SK Telecom, which has half of mobile subscribers in Korea, the stock of 10,000 units has passed in nine hours. Another element of contrast: the Galaxy Note 4 is targeted, but do not forget that iPhone sales are two models. This again raises the question of which model is preferred by the buyers.

Even if Apple can rejoice preorders iPhone 6 and 6 Plus, it will be necessary to see over time how the smartphones are doing in Korea, China and more broadly across Asia. The question is particularly interesting because it raises the relevance of large slabs as a success factor in hard to penetrate ordinary markets.

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