Some time ago, it was revealed that LG plans to sell iPhones in its retail stores after they leave the mobile phone business. Now the plan has to be shelved after the protests.
As previously reported, LG plans to sell some Apple products such as the iPhone, iPad and Apple Watch in its stores. LG currently has over 400 Best Stores in South Korea which will have a lot of empty space once they stop selling phones.
This protest comes from small and medium businesses that also sell mobile phones. The South Korean government does have a policy that prohibits large companies such as LG and Samsung from selling competing products in their stores to protect small retailers.
If LG follows through on plans to sell iPhones in its stores, small retailers fear that the megastores will attract all potential buyers, even though many small businesses are already vulnerable amid the outbreak.
Before receiving protests from small and medium businesses, LG also received similar objections from Samsung who did not accept it because this decision would benefit its competitors and threaten their market share in their own countries, as quoted from GSM Arena, Sunday (11/7/2021) .
LG also has its own concerns. If LG really sells Apple products, then they will lack the energy and distribution channels that should be allocated for LG products.
In addition, there are also concerns that the sale of mobile phones will affect the sale of household electronic devices, especially smart home appliances. So that the loss of cell phone sales is feared to affect other businesses.
The dispute between Apple and LG was also cited as another factor. LG allegedly wants to sell Apple devices in all Best Shop stores, but Apple only wants to sell its products in around 200 stores because some store locations are not suitable.
LG has also reportedly discontinued employee training programs provided to sell Apple products. LG says the suspension of this plan is only temporary, it is not known if it will resume once the outbreak is over.
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