Apple Reportedly Agrees to Deal to Sell iPhones in Korean LG Retail Stores From August

LG has agreed to sell Apple's iPhones, iPads, and Apple Watches at its "LG Best Shops" in South Korea from August, according to a report by the local Herald Economic Daily.

iphone 12 box
The Apple products will go on sale at 400 LG stores across the country. As part of the agreement between the two parties, all Macs are excluded from the sales, since LG's laptop offerings overlap with Apple computers.

The news comes after initial stumbling blocks over the proposed deal appeared to make an agreement unlikely. According to the report, LG faced stiff resistance from the National Mobile Communication Distribution Association, which viewed the proposal as a direct violation of an earlier "win-win" competition agreement to do with the sale of mobile phones.

However, a "negotiable in case of change" clause in that agreement has been cited by the regulatory bodies to argue that it is too early to judge whether LG is in violation, given its changed position in the industry.

LG Electronics recently announced its withdrawal from the smartphone business, and when it completely withdraws from the mobile business at the end of this month, retail space previously used for marketing its handsets will be vacant. Apple meanwhile saw an opportunity to increase its retail presence in Korea, and the two companies began negotiations.

Korea's Distribution Association is reportedly awaiting LG's official statement on the matter while it renegotiates the win-win agreement once it starts selling Apple's products in its stores.

Tags: Korea, LG

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Top Rated Comments

jdavid_rp Avatar
52 months ago

Now we know why LG gave up the Phone business, I smell secret agreements here.
Maybe the next iPhone display will be from LG, or some other component.
Buying away the competition...
They gave up because they just weren't selling phones lol. I dont think Apple would do an agreement like that, they will choose the best component that is available for their devices. If the next iPhone has a LG display it will be because their quality comply the apple standard. Not need to risk the quality for some agreements
Score: 7 Votes (Like | Disagree)
senttoschool Avatar
52 months ago
Let's go! Apple stock to the moon. ??
Score: 4 Votes (Like | Disagree)
ian87w Avatar
52 months ago

Colour me a little bit surprised. I knew they were close, but I didn't realize they were so close that Apple would be willing to do this. I guess practicality trumps pride this time around.
Apple only has like, I think two Apple stores in S. Korea. In contrast, Singapore has 3, and Japan has 10 (to draw comparison with other developed Asian markets). So Apple definitely needs more retail presence. Imo it's a win win. LG gets some use and money out of the space they already have, Apple has access to hundreds of retail channels almost immediately. Not quite sure where pride goes in this context.
Score: 2 Votes (Like | Disagree)
ghanwani Avatar
52 months ago
Makes sense given that LG is exiting the phone business.
Score: 1 Votes (Like | Disagree)
DelayedGratificationGene Avatar
52 months ago
LG and Magna are going to manufacture the Apple Car. LG knows where it’s future revenue is so of course it will sell iPhones in its store. Nice to keep your future Partner happy.
Score: 1 Votes (Like | Disagree)
Spike1999 Avatar
52 months ago
They might as well, as LG stores have space to stock them now ?
Score: 1 Votes (Like | Disagree)