The LG has withdrawn from the smartphone market for some time now, but it still manufactures technology products and retains a chain of retail stores in South Korea. However, the stores seem to have a gap in the mobile device sector. Thus, the company decided to start negotiations with Apple to distribute its devices in LG Stores.
This particular move by LG has particularly disturbed small and medium traders, companies, and consumers. Samsung also expressed great displeasure with this strategy of the company, considering that it will be put at a disadvantage and LG violates the bilateral agreement that has been established, which dictates that each of the two companies will sell exclusively its own products in its stores. If this cooperation proceeds, Samsung is likely to lose its leadership position in the 5G Smartphones’ market. Considering the large growth of 5th generation networks in South Korea, one can imagine the size of the demand for 5G devices.
Small and medium-sized retail sellers also expressed their fears of disrupting the smooth operation of their stores following the arrival of Apple’s electronic devices into LG’s stores.
A similar position was expressed by the South Korean government, which considers that this can create imbalance in the market and promote unfair competition, as large retail chains and small sellers will be in a state of unequal conditions.
At the same time, concerns are being raised about devaluing LG itself, due to the user reaction to this company’s move, while its employees and sales channels will have to focus on selling for Apple, at the expense of LG’s products.
As a result of these reactions, LG announced that it will not proceed with cooperation with Apple and concurrently stopped the training of sellers and managers regarding sales of Apple technology products. You can stay informed about what’s new in the technology world through the blog of TheFixers. We present you daily with the freshest news and the most interesting information.
