Samsung is pressuring LG to sell Galaxy smartphones at its stores


LG

With LG’s exit of the smartphone business, the company will no longer have its own smartphones to offer at their LG Best Shop locations. Therefore, the company is planning to sell Apple iPhones for those who go to these stores through South Korea in a bid to purchase a new smartphone. Apparently, the company is facing certain resistance from its fellow Samsung. As per fresh reports, Samsung is upset by this and claims such a move will violate an agreement signed by the two companies in 2018. The document states that only LG-made smartphones can be sold at LG-run shops and similarly only Samsung smartphones can be sold at Samsung shops. This document aims to protect small and mid-sized stores selling other devices from the two giants.

LG is pointing to a clause in the agreement that says that it can be renegotiated in case of a major change. Well, the company’s exit from the smartphone business seems to be a major change. The association that initiated the agreement is also questioning LG’s move. However, an official agrees that a renegotiation should follow due to the current circumstances.

LG

Samsung does not want LG to sell iPhones through its stores

Samsung is not happy with the fact that Apple will sell iPhones through the 400+ LG shops around Korea. The company fears that this move will threaten the “good flow” of its 5G smartphone sales. Currently, Apple stands as the largest vendor of 5G smartphones globally. Samsung stands in fourth place and is growing fast. However, this can be threatened by the arrival of new 5G iPhone modes that are set to come in September or October. That is exactly when LG and Apple deal is supposed to go live.

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The original plan includes selling iPhones, iPads, and Apple Watches. However, this has changed to only iPhones as of now. Samsung is applying pressure to LG indirectly asking the three big carriers (among which LG U+) to demand that LG also carries Galaxy smartphones in the LG Best Shop locations. Of course, this deal may face some internal opposition as it can take sales away from Samsung stores. We are curious to see how this situation will evolve. Of course, the Korean firm could easily make its stores a place for selling general smartphones Samsung and Apple. However, we believe that there are certain exclusivity deals going on between the Korean giant and the Cupertino-based firm.

 

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