LG’s plans to start selling iPhones in its South Korean stores have met with opposition from Samsung, which claims the move would violate an agreement the companies signed in 2018. According to this agreement, only LG smartphones can be sold in LG stores, and only Samsung smartphones can be sold in Samsung stores. This agreement was intended to protect small and midsize electronics stores from the two tech giants.
Now LG intends to start selling the iPhone in more than 400 brand stores across the country. Samsung fears that such a move will negatively affect the market share of its 5G smartphones. Recall that Apple is the largest supplier of 5G smartphones in the world, while Samsung is only in fourth place, although it is growing the fastest.
LG insists that the agreement with Samsung has lost its validity, as it contains a clause according to which the agreement may be renegotiated due to significant changes in the business of one of the companies. For LG, this change was the closure of its mobile division.
LG’s original plan was to sell iPhones, iPads and Apple Watch in branded stores, but now the company has settled on smartphones only. Samsung is trying to pressure LG by asking the three largest mobile operators in Korea to demand that LG sell Galaxy smartphones in addition to iPhones in its stores.