Samsung Electronics` smartphone `Galaxy Note 8`, which has been unveiled in New York on August 23, is expected to revitalize the Korean domestic mobile communication market in the second half of the year. It is estimated that the demand for transfer to Galaxy Note 8 will reach a maximum of 1 million units considering replacement demand for Galaxy Note 5 and standby demand caused by Note 7 battery explosion.

According to the industry on August 24, Samsung Electronics will launch Galaxy Note 8, which is disclosed in New York, USA, on September 15. In line with this, SK Telecom, KT, and LG U Plus Mobile Communications will launch marketing for pre-booking and opening of Note 8 from September.

On the other hand, the Galaxy Note series has been a catalyst for the mobile telecom market in the second half of the year. Note 5, which became the most popular among the Galaxy Note series launched in 2015, is estimated to have led the mobile number movement market in the second half of the year. In the industry, SK Telecom, KT, LG U Plus, and three other mobile carriers will sell 3 million Galaxy Note 5 until recently. It estimates sales of more than 750,000 units during the first three months of the launch. Considering that the number of mobile users was 2,839,577 from August to December 2015, it is safe to assume that Galaxy Note 5 led the entire market.

Although the Galaxy Note 7 battery blasted off last year, the Galaxy Note 8 is likely to become a core product of the mobile communication market. In particular, the situation is favorable given that the replacement cycle of Galaxy Note 5 users who have signed a two-year agreement in this year is coming back, and waiting demand has not been transferred to Galaxy Note 7 due to the early termination. As a result, the industry expects the initial sales of Galaxy Note 5 to surpass 750,000 units and reach more than 1 million units in the second half of this year.

Meanwhile, the problem is whether or not the Galaxy Note 7 succeeded in stabilizing the initial product without causing any problems. In addition, the release of the iPhone 8, which is regarded as the sole counterpart of the Galaxy Note 8, can also affect sales. The release date for the iPhone 8 is not disclosed. However, it is likely to launch in the US next month. Since Korea is Apple`s third-party launch site, it should be released at the earliest time in October. Thus, Galaxy Note 8 is likely to dominate the domestic premium smartphone market in the second half of the year for at least two months. Accordingly, the three mobile telcos also have to concentrate on marketing Galaxy Note 8 for two months from September to October.

"In the case of Note 5, initial shipments were almost complete," said an industry expert. "Note 8 also indicates that there are a large number of standby users waiting for premium models, and mobile carriers will aggressively launch events. Kim Dong-won, a researcher at KB Securities, stated, "After the issue of the Galaxy Note 7 spark, we expect to absorb demand for large-screen smartphones."


By Kim Ji Young kjy@


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