Samsung Electronics on alert as LG Electronics decides to sell Apple iPhones

LG Electronics will start selling the iPhone through LG Best Shops beginning in August, local media outlets reported recently. This news has put Samsung Electronics on alert Samsung Electronics officials in charge of the domestic business, the home appliances and smartphone business recently held an emergency meeting on LG Electronics’ decision to sell the iPhone at LG Best Shops. Samsung Electronics and Apple have been competing to attract LG smartphone users since LG Electronics announced its exit from the smartphone business.

Samsung Electronics has already been running behind Apple in the global 5G smartphone market. Apple is ranked first with a 29.8 percent share of the 5G smartphone market in the first quarter of 2021, Strategy Analytics (SA) said. Apple launched its first 5G phone “iPhone 12” at the end of 2020. China’s Oppo (15.8 percent) and Vivo (14.3 percent) came in second and third, respectively, while Samsung Electronics fourth with a 12.5 percent share.

Industry analysts predict that Apple’s market share will climb to the 30 percent range in Korea in 2021 due to LG Electronics’ withdrawal from the smartphone market. In the domestic market, Samsung was the No. 1 player with a 65 percent stake in 2020, followed by Apple with 20 percent and LG Electronics with 13 percent, according to Counterpoint Research.

In addition, Samsung officials also believe that if young iPhone users start buying home appliances at LG Best Shops, Samsung Electronics’ home electronics business and Samsung Digital Plaza stores will be hit hard.

Earlier, LG Electronics decided to sell the iPhone, the iPad, and the Apple Watch at LG Best Shops run by its subsidiary Hi Praza starting from Aug. 1. LG Electronics will sell them after taking over their sales right from Apple. But it will exclude Apple laptops and desktop computers such as MacBook Laptop and the iMac and MacPro Desktops from its sales list, given that LG Best Shop is already selling LG Electronics’ laptops and desktops. It also decided not to provide repair services for such Apple products. Business Korea