Mobile Carriers Battle for iPhone 18 Pro Customers, With Lock-In Over Subsidies

SK Telecom, KT and LG Uplus, the country’s three mobile carriers, have started preorders for Apple’s “iPhone 18 Pro” and “iPhone 18 Pro Max.” On the surface, the competition centers on discounts and freebies, but in reality each company is pursuing a different strategy. The focus in the competition for Apple’s new iPhone lineup is also shifting from one-time subsidies to the post-purchase user experience.

SK Telecom is touting a strategy that locks users in through AI, content subscriptions and dedicated memberships. KT is pursuing a strategy that bundles premium plans with devices such as AirPods. LG Uplus is putting its AI calling service and a device buyback program after 2 years front and center. The photo shows LG Uplus.

All three carriers are similarly strengthening their own online malls and long-term customer management. Their shared goal is to link handset sales with telecom services, subscription products, affiliate credit cards and device replacement programs. Through this, they are shifting the focus of competition toward maintaining customer relationships for at least 2 years.

SK Telecom, KT and LG Uplus will begin preorders for the iPhone 18 Pro and iPhone 18 Pro Max at 9 p.m. on the 12th. The official launch date for the iPhone 18 Pro and iPhone 18 Pro Max is the 18th.

For iPhone customers, SK Telecom is highlighting discounts at T Direct Shop as well as AI and content subscription products. At T Direct Shop, it is offering vouchers for purchasing the iPhone 18 Pro series through the “Lucky Roulette” event.

The voucher benefits are up to KRW 200,000 for the 256GB and 512GB models, and up to KRW 300,000 for the 1TB and 2TB models. Returning an iPhone 17 Pro 256GB A-grade model brings compensation of up to KRW 1.22 million. Additional benefits such as the Mintit reward program are worth up to KRW 150,000. Customers using the Hyundai Card partnership can receive benefits worth up to KRW 1.18 million over 24 months, including telecom bill discounts and coupon packs, if they meet conditions such as prior-month spending requirements.

The iPhone 18 Pro 2TB and iPhone 18 Pro Max 2TB will be sold exclusively at T Direct Shop.

SK Telecom is differentiating itself by expanding purchase and activation benefits for the iPhone 18 Pro series beyond device discounts to AI services, content vouchers and dedicated memberships. Its distinction lies in linking handset purchase benefits with AI and content subscriptions.

Until October 18, SK Telecom will offer 2-month subscriptions to Google AI Plus for customers who activate an iPhone 18 Pro series device. The same customers will also receive a 4-month subscription to Tving’s ad-supported Standard plan.

Google AI Plus includes expanded Gemini usage limits, NotebookLM Pro and 400GB of Google Drive storage. SK Telecom is also offering a dedicated T Membership program, “Club iPhone 18 Pro,” to customers who activate their devices through preorder.

Basic benefits of “Club iPhone 18 Pro” include a Kakao emoticon Plus voucher and dining coupons. Prize benefits include camping, movies and Kakao Pay discounts.

The image caption reads Apple Watch Series 12, Photo: KT. KT has centered its offering around the “Choice Double” plan. KT’s bundled elements are the iPhone, AirPods, AI and OTT, and it is combining AirPods, AI and OTT with premium plans.

KT has structured the Choice Double plan around YouTube Premium Lite and allows customers to choose combinations of Netflix, Google AI Plus, AirPods Pro 3, Disney Plus and device insurance. Along with this plan, which broadens customer choice, KT said that if customers sign up for “Choice Double Device” by the 30th and select AirPods Pro 3, it will fully discount the handset installment payments on a 24-month installment basis. However, a separate 5.9% installment fee applies to the AirPods Pro 3 benefit.

KT has also unveiled a new product, “Phone Change_i18,” aimed at replacement demand for handsets. “Phone Change_i18” can be joined for KRW 5,000 per month, and if customers return their existing iPhone after 2 years, KT guarantees up to 50% of the handset’s launch price at the time of subscription. KT is also offering its “365 Phone Care” service, which includes coverage for loss, theft and damage, as well as damage coverage for a second device.

The maximum benefit KT has presented through affiliate credit cards is about KRW 1.44 million. This amount was calculated on the condition that the eligible card’s prior-month spending requirement is met, and is based on the sum of 24 months of discounts and card-specific cash back.

KT Direct Shop offers up to a 32% plan discount by adding an online-only 7% discount to the 25% contract discount. KT Direct Shop is also providing an additional KRW 200,000 subsidy for Apple Watch purchases to 1,000 customers who buy an iPhone and Apple Watch at the same time and sign up for a plan worth more than KRW 90,000 per month.

LG Uplus has presented its own AI calling app, ixi-O, as the key differentiator in its iPhone 18 promotion. LG Uplus has designed the offering so that iPhone 18 Pro series users can experience a range of AI calling functions through ixi-O.

iPhone 18 Pro series users can use call recording and summaries through ixi-O. They can also use Roaming Call, an international voice calling service, through ixi-O.

ixi-O also supports a voice phishing financial safety function that detects voice phishing risks during calls. If suspicious financial transactions occur, this function provides guidance linked to KB Kookmin Bank and Woori Bank.

LG Uplus’s AI call answering function lets AI answer calls on the user’s behalf and then relays the message in text. LG Uplus has applied the voices of members of BoyNextDoor to the AI call answering service, and is pursuing a strategy that combines AI calling features users can experience on iPhone with fandom marketing.

LG Uplus is offering handset discount coupons of up to KRW 200,000 on the U+ Official Online Store, and is providing up to KRW 180,000 in additional compensation on top of used-phone buyback prices for customers returning their existing smartphones. It is also easing the burden of buying an iPhone by offering up to 36 months of interest-free installments when paying with Samsung Card or Hyundai Card.

In addition, LG Uplus is operating a “Reward Pass” aimed at keeping iPhone customers for the long term. The monthly fee for the “Reward Pass” is KRW 5,000, and if a customer upgrades to the next iPhone after 24 months from purchasing the iPhone 18 and returns the existing device, LG Uplus will compensate up to 50% of the original launch price. It also discounts the Reward Pass fee through the end of this year for customers who subscribe to a plan at or above a certain level.

LG Uplus is also strengthening its bundling of premium plans with Apple devices. If customers maintain the eligible plan for at least 24 months, it will fully discount the installment payments for AirPods 4. In addition, depending on the plan and the length of service, it will subsidize part of the installment payments for the AirPods 4 Active Noise Cancelling model, AirPods Pro 3 and Apple Watch SE3.

The iPhone-related benefits offered by the three carriers are structured in a way that makes direct comparison difficult on the basis of maximum amounts. SK Telecom’s maximum benefit of KRW 1.18 million and KT’s maximum benefit of KRW 1.44 million are both the result of combining affiliate card spending performance with long-term discounts. In LG Uplus’s case, it is highlighting device installment discounts, with conditions attached to maintaining specific plans for 24 to 36 months.

KT and LG Uplus are also offering 50% launch-price guarantees. However, KT and LG Uplus’s 50% guarantees are tied to monthly fee payment conditions and the requirement to upgrade to a successor iPhone with the same carrier after 2 years. These 50% guarantees from KT and LG Uplus serve both as handset discount measures and as long-term contract devices to prevent customer churn.

Competition around the iPhone has broadened among the three carriers this year. Beyond subsidy size, the carriers are packaging AI, OTT subscriptions, smart devices, device management and next-product replacement into their offerings. As a result, consumers need to look at their actual out-of-pocket costs rather than the headline “maximum benefit” figure, and the criteria for judging actual costs include plan retention periods, card spending performance, handset return conditions and device upgrade conditions.

Source: IT DAILY · Lee Jae-young
Original: https://www.itdaily.kr/news/articleView.html?idxno=241553

References

• https://www.itdaily.kr/news/articleView.html?idxno=241553