Samsung is not at all happy with LG’s decision to sell Apple products in its LG Best Shop stores. And it plans to do something about it, according to new reports from the two companies’ shared home region in South Korea.
In fact, if the rumors have any weight, Samsung is betting on a signed deal between itself and LG to step in. But not in the way this deal might seem to suggest. Instead, the company hopes to indirectly convince LG to sell its own Galaxy line at LG Best Shop. Apparently, by demanding that the three largest carriers in the region pressure LG to do so.
According to Samsung, what deal did LG break in the alleged deal with Apple?
Now, as noted above, the latest reports follow further claims that LG will soon start selling iPhones and other iOS products in its dedicated storefronts. But such an agreement would be impossible, according to an agreement signed between Samsung and LG. While LG claims that the sale of Apple products does not violate the Samsung agreement, the latter company disagrees.
In summary, the agreement, signed in 2018, only allows LG phones to be sold in LG-operated stores. And Samsung can only sell its own phones in its stores thereafter. The purpose of the agreement was to prevent Samsung or LG stores from driving consumers away from smaller stores.
LG and Samsung collectively held a significant portion of the market share. At least, that was before LG exited the smartphone business. So being able to buy both at either would effectively negate the interest of those smaller retailers.
LG’s disagreement may not be unfounded
From LG’s perspective, the deal doesn’t necessarily negate its ability to sell iPhones, iPads and other gadgets. Although it allegedly doesn’t sell Apple’s laptops or desktops, as it could undermine its own business on those fronts. The company currently has over 400 of its LG Best Shop stores in the region.
The company indicates that there is a clause in the agreement that allows renegotiation. And, aptly enough, that renegotiation is meant to happen when big changes happen, which LG leaves behind arguably matches. At least one official, according to reports, agrees with LG’s position. But it remains to be seen whether the company will be able to move forward with its deal with Apple.