LG’s plan to sell iPhones at LG Best Shop stores in South Korea is facing opposition. Samsung is upset by this and claims that such a move would violate an agreement signed by the two companies in 2018, which states that only phones made by LG can be sold in stores operated by LG and, similarly, only phones. Samsung phones can be sold in Samsung stores (this agreement was intended to protect the small and medium-sized areas of the two giants).
However, LG points to a clause in the deal that says it can be renegotiated in the event of a major change. And things did indeed change considerably when LG left the mobile phone business. The association that initiated the deal is also questioning LG’s decision, but an official agreed that a renegotiation should follow given the circumstances.
Samsung is concerned that iPhones becoming available in more than 400 LG stores in Korea could threaten the market share of its 5G smartphones. Apple is the world’s largest supplier of 5G phones, Samsung is the fourth (although growing the fastest). And there are new all-5G iPhone models coming in September or October, right after the LG / Apple deal is supposed to go live (allegedly August 1).
Speaking of which, the original plan was to sell iPhones, iPads, and Apple Watches (not Macs, however, as LG didn’t want competition for its own computers). The latest report is that this has been revised to only sell iPhones.
Samsung is trying to put pressure on LG indirectly by asking the three big Korean carriers (including LG U +) to demand that LG also offer Galaxy phones in Best Shop stores. Of course, this deal could face some internal opposition as it may take sales to Samsung stores.
Source (in Korean) | Going through
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