MEX Notes: Korean device manufacturers tempt buyers with lavish competition prizes
- Korean device manufacturers tempt buyers with lavish competition prizes – Network operators in South Korea are not allowed to subsidise handsets to sell wireless contracts, as is common in the the UK, US and many other countries. Instead, customers pay upfront to purchase their phone. However, this hasn't stopped smaller device manufacturers – such as Pantech and KT Tech – trying to tempt potential customers with competition prizes such as Ferraris and foreign holidays. It is an unsustainable strategy, promoting gimmicks over good user experience, and symptomatic of an industry with a short-term focus on the 'smartphone' gold rush. The most telling quote came from a Pantech spokesperson, who said: "We cannot compete head to head with Samsung and Apple with normal marketing strategy and features…"
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