Smartphone distributors are not happy with LG’s planned iPhone deal with Apple

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Smartphone distributors are not happy with LG’s planned iPhone deal with Apple

LG announced exit from the smartphone market in April. After two months, LG is in talks with Apple about selling iPhones LG Best Stores stores in South Korea, but the plan is now reluctant.

LG sells iPhone phones in stores is not fair, say local players

Korea Herald Is reportage The Korea Mobile Distributor Association, which represents local smartphone distributors, has criticized LG’s plans to store Apple products such as the iPhone and iPad in its flagship stores. The association has sent a letter expressing its concerns to the Korea Business Partnership Commission, asking it to intervene. It referred to the 2018 agreement, in which both LG and Samsung commit to striving for well-being with local players.

It seems that the main issue is the extra competition that local players face LG by selling Apple devices in their stores. Currently, the iPhone accounts for about 25% of local smartphone shipments and is expected to rise after LG’s exit.

If LG starts selling iPhones and iPads in its retail stores, smaller Korean players could lose a huge portion of their sales commission, which in turn will make it harder for them to compete with larger companies.

The Commission’s priority is to create a fair and transparent environment for businesses. The Commission said in its statement; “Both sides need to coordinate the matter and conclude a new agreement.”

The only time will tell what is the outcome of LG and Apple. But the retail deal between the two has not yet been completed, so it could crash and LG could be left without new products to fill the void in its retail stores.

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