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LG Delays Plans to Sell iPhones in Stores, Why?

Seoul

A while ago, a plan was revealed LG to sell iPhone in its retail store after they left the cell phone business. Now the plan has had to be put on hold after protests.

As previously reported, LG plans to sell several Apple products such as the iPhone, iPad and Apple Watch in its stores. LG currently has more than 400 Best Shops in South Korea which will have a lot of free space once they stop selling phones.

This protest came from small and medium-sized businesses that also sell mobile phones. The South Korean government does have a policy that prevents big companies like LG and Samsung from selling competing products in its stores to protect small retailers.

If LG sticks to its plan of selling iPhones in its stores, small retailers are concerned that these large stores will attract all potential buyers, even though many small businesses are already vulnerable in the midst of the pandemic.

Before receiving protests from small and medium-sized businesses, LG also received a similar protest from Samsung which did not accept it because this decision would benefit its competitors and threaten their market share in their own country, as quoted from GSM Arena, Sunday (11/7/2021).

LG also has its own concerns. If LG really sells Apple products, then they will lack the manpower and distribution channels that should be allocated to LG products.

In addition, there are also concerns that the sale of mobile phones will affect sales of household electronic devices, especially smart home appliances. So the loss in cell phone sales is feared to affect other businesses.

The dispute between Apple and LG was also cited as another factor. LG claimed to want to sell Apple devices in all of its Best Shops stores, but Apple only wanted to sell its products in about 200 stores because some store locations did not suit him.

LG is also reportedly discontinuing employee training programs set up to sell Apple products. LG said the postponement of this plan is only temporary, it is not known whether it will resume after the pandemic ends.

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