Rivals Chase the iPhone

Monkey see, monkey do. Manufacturers of cellphones like Samsung Electronics and Sony are following the iPhone’s lead in creating devices with an Internet browser and a distinctive touch screen.

While Americans have been blitzed with news about the iPhone’s debut, many in South Korea’s and Japan’s technology industries initially greeted Apple’s flashy new handset with yawns.

Pantech's design center in Seoul, South Korea. An executive at the company says that riding on Apple’s coattails may turn out to be the best business strategy.

Cellphones in these technology-saturated countries can already play digital songs and video games and receive satellite television. But now that analysts and industry executives are getting their first good look at the iPhone, many here are concerned that Asian manufacturers may have underestimated the Apple threat.

Analysts and executives in South Korea say that the iPhone, with its full-scale Internet browser and distinctive touch screen with colorful icons, is more than just another souped-up cellphone. They fear this Silicon Valley challenger could leap past Asian makers into the age of digital convergence by combining personal computing and mobile technologies as no device has before.

“Apple’s impact will be bigger than Asian handset makers think,” said Kim Yoon-ho, an analyst in Seoul at Prudential Securities. “The iPhone is different from previous mobile phones. It is the prototype of the future of mobile phones.”

The fear now is that Apple may repeat in wireless communications what it accomplished in portable music with the iPod: changing the industry. And just as when the iPod came out six years ago, big Asian manufacturers like Samsung Electronics and Sony could find themselves wondering what hit them, say analysts and industry executives.

Here in South Korea, manufacturers are taking the threat seriously, and are rushing out their own iPhone-like handsets. By the end of the year, Samsung, South Korea’s biggest cellphone maker, will unveil its Ultra Smart F700, with a large touch-controlled screen displaying rows of icons, much as the iPhone does.

LG Electronics, another large Korean handset maker, has begun selling a smartphone in Italy that can view full-size Web pages. Pantech, which sells most of its phones in the United States under the carriers’ brand names, will also unveil its first touch-screen smartphone this fall.

“If the iPhone changes the rules in the cellphone market, then we have to adapt as soon as possible,” said Yi Seung-soo, a cellphone designer at Pantech. “We can take advantage of being a follower,” he said.

http://www.nytimes.com/2007/07/02/technology/02cellphone.html?
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