KT CEO downplays smartphone worries

The chief executive of KT on Monday played down worries about its limited smartphone lineup due to its rift with Samsung Electronics, the biggest handset vendor in Korea, and the delayed rollout of the new iPhone. 

Concerns are growing that Korea’s No. 2 wireless carrier may lose its early lead in the lucrative market, as its bigger rival SK Telecom is fighting back with Samsung’s popular Galaxy S smartphone, which it sells exclusively. 

KT, the sole supplier of Apple’s iPhone in Korea, planned to launch the newest iPhone in late July, but the plan could be delayed to August because of a shortage of the gadgets. 

Mobile operators are betting big on smartphone sales to boost wireless datarevenue and generate new income streams in a saturated market. 

However, KT has difficulty in securing smartphones from Samsung as relations between the two former allies have deteriorated following KT’s introduction of the iPhone in late November. The iPhone has enjoyed huge popularity in Korea, dealing a blow to Samsung’s leadership in the home market. 

Lee Suk-chae, CEO and chairman of KT, expressed regret over the soured ties, but said the absence of Samsung’s flagship Galaxy S would not undermine its leadership position in the domestic market. 

“It is heart-breaking,” he said at a news conference, noting that Samsung does not supply the Galaxy S to KT even while offering it to AT&T, the exclusive seller of the iPhone in the United States. 

“I expect (the issue) to be resolved as time goes by. ... The absence of Galaxy S will not undermine our efforts to become a company beloved by consumers,” he said.