It was reported a couple of weeks ago that Apple would be establishing a more dominant position in South Korea’s retail market. It had apparently convinced LG Electronics to sell iPhones, iPads and the Apple Watch through its 400-strong retail network of LG Best Shops.
Retail sales still account for a significant chunk of smartphone sales in Samsung’s home country. Apple’s increasing influence would have given cause for concern to many local players. However, it seems that the threat has fizzled out for now.
Small and medium-sized retailers have forced a rethink
Some Korean media outlets had initially reported that Samsung actually reached out to LG through the country’s top mobile carriers, requesting the company to also sell its Galaxy smartphones at the Best Shops. However, that story was eventually retracted, so it may not have been accurate in the first place.
Even if Samsung wasn’t bothered by LG’s decision, many small and medium-sized electronics retailers in the country were. They feared a decline in their sales as they wouldn’t be able to effectively compete with LG’s nationwide retail network.
The latest reports out of South Korea reveal that LG has been paying attention to the public opinion regarding its cooperation with Apple. It’s said to have temporarily suspended the decision on its plans to sell Apple products at Best Shops. The company is particularly taking into account the concerns of the small and medium-sized retailers who will be most affected by this decision.
Samsung is simply monitoring the situation. An unnamed official quoted in the report says “We will closely monitor the market situation.” Obviously, the company won’t let Apple take the lead in its home market. So it the need arises, it would adopt new strategies to maintain its edge.