LG and Apple could not agree on iPhone sales. Of course, the winner of this situation was Samsung. Let’s take a look at the details of the dispute.
According to the agreement between LG and Apple, some Apple products, especially the iPhone, will be sold in more than 400 LG stores in South Korea this summer. In fact, LG has even started to provide training to its employees in this direction. However, recent developments show that LG cannot currently sell Apple-signed products in its stores.
It seemed like a good idea for LG, which is constantly losing money in the smartphone market, to end its phone business and turn to profitable operations in this area. LG has announced that it has suspended this process for now, considering it will negatively affect small-scale sellers in South Korea. Of course, the public reaction from small and medium-sized businesses had a great impact on this decision.
The South Korean government has a policy to protect smaller retailers that prevent giants like Samsung and LG from selling competing products in stores they own. There are concerns that selling iPhone, iPad, Apple Watch and AirPods in LG stores could drive customers away from smaller stores that are still struggling to cope with the impact of the ongoing pandemic.
LG’s launch of iPhone sales in more than 400 stores is seen as a threat to the 5G market in the country. Of course, this poses a great threat to Samsung the most.
LG is not without its concerns about this process. LG thinks that after the sale of Apple products, users will move away from LG branded products even in their own stores. There are also disagreements between the two as to which LG stores will sell iPhones. While LG wants to sell Apple products in all its stores in the country, Apple wants to sell products in about 200 stores on the grounds of locations and some requirements.
It is unclear whether LG, which has ended a training program on Apple products for its employees, will continue to do so after the pandemic. LG calls this a temporary suspension.