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Not only iPhones! Samsung Presses LG to Market Galaxy Smartphones in Brand Stores

Update (06/27/21) – PF

Under the argument of breach of prior agreement, Samsung is pressuring LG so that the brand, after its exit from the smartphone market, also sell Galaxy devices in its more than 400 stores across South Korea; not just limited to iPhones.

According to the company, such a limitation would violate an agreement signed in 2018 between the companies, where it was decided that the stores of both could only sell smartphones manufactured by themselves. This agreement was signed with the aim of protecting small and medium-sized retailers from the two giants.

LG, on the other hand, claims that a clause in the contract guarantees renegotiations in the agreement in the event of a major change – and it is undeniable that the company’s exit from the mobile market was, in fact, a major change; and that would be enough to allow the company to sell the smartphones da Apple in your retail network.

Samsung fears that the incorporation of Apple’s line of handsets into its South Korean sister’s windows will further threaten its share of the 5G handset market, as it ranks bitterly 4th in the sale of such devices globally, while Apple figure in 1st.

the impasse, which also has the support from Korea Mobile Distributor Association – representative company of smartphone distributors in the country, started when LG started negotiations with Apple to be able to sell the brand’s smartphones in its retail stores in Korea, the “LG Best Shops”.

Faced with opposition from retailers and, in part, from Apple itself – which wanted its MacBooks to be sold in stores as well, LG’s original plan was to sell beyond iPhones, iPads and Apple Watches, but the latest reports indicate that the agreement would have been revised to limit the sale only to smartphones of the brand.

Samsung is still trying to pressure LG of the decision through the three major operators in the Asian country (including LG U+), indicating that their smartphones should also be marketed in the retail network.

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Update (06/24/21) – JB

LG may sell iPhones in brick-and-mortar stores, but according to Apple faces resistance

LG continues negotiating with Apple to sell iPhones in your physical stores in South Korea, but the deal between the companies could face opposition from several local retailers.

At a demonstration this week, the Korea Mobile Distributor Association – a company that represents smartphone distributors – criticized LG’s plans. The organization also sent a letter to the Korean Corporate Partnership Commission asking for urgent intervention.

The main problem is that LG could end up reducing iPhone sales at traditional retailers. Currently, the iPhone accounts for 25% of local shipments in Korea, with the trend increasing after the LG leave the smartphone market.

If LG gets an exclusive deal with Apple, it seems that small retail stores may be forced to stop selling iPhones. Therefore, the organization asks that the korean government intervene so that a fair environment can be created.

Both of them [LG e associação] they will need to coordinate and reach a new agreement on the matter.

For now, Apple and LG have not commented on the matter. The Korean government remains silent.


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Original text (06/17/21)

LG deals with Apple and may sell iPhones in stores in South Korea

A LG abandoned the global market for good of smartphones and is ending its last activities in the sector. Therefore, more recent rumors indicate that the South Korean company could end up closing a deal with Apple to sell iPhones in its brick-and-mortar stores.

Currently, LG runs 400 retail stores in South Korea, all of which are known as “LG Best Shops”. However, with the company’s departure from the mobile segment, these establishments lost part of their catalog.

This may have motivated the company to fill the space with Apple devices. So, in addition to attracting a new range of consumers, LG would also profit from commissions from the sale of iPhones.

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According to Business Korea, negotiations between Apple and LG continue to advance, but the Cupertino giant wants Macs to be sold in these stores, something that the South Korean dislikes.

LG continues to sell its own laptops — LG Gram — and that could make negotiations with Apple difficult, as MacBooks are direct competitors of the devices.

So far, the Apple did not confirm negotiations. A spokesman for LG said:

Nothing has been decided yet. We are exploring all possibilities.

It is worth remembering that LG and Apple have a long history of partnerships in different markets. Recently, sources revealed that the South Korean may be one of the collaborators at the launch of the future Apple Car.

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