Bo-eun leads the digital content team. She has covered foreign affairs, North Korea, tech, economy and gender issues at The Korea Times. She did a short stint at the South China Morning Post in Hong Kong, where she obtained a new perspective on news production and life. Small sources of joy for her are lounging in the sun, having a good latte and swimming.
Apple seeks to capitalize on LG's smartphone exit
Apple's logo is seen at an Apple Store in New York / AP-Yonhap
By Kim Bo-eun
Korean firm partners with US giant for strategic interests
By Kim Bo-eun
Apple is stepping up its efforts to strengthen its foothold in the Korean smartphone market by capitalizing on LG's smartphone exit.
LG Electronics made a strategic decision early this year to withdraw its loss-making smartphone business, and the process is set to be completed this month. Existing players in the market are moving quickly to capture parts of LG's market share, offering trade-in programs for LG smartphone users here.
LG accounted for 13 percent of the local smartphone market in 2020, and Apple 20 percent, according to market tracker Counterpoint Research. Samsung took up the dominant share of about 65 percent.
LG's exit from the smartphone market was widely expected to benefit Samsung, based on presumptions that Android-based handset users would likely opt for models using the same operating system (OS).
But Apple appears to see an opportunity to expand its market presence. And LG seems willing to work with the U.S. tech giant, as this is in its interests as well.
Apple and LG are in talks for LG's home appliances and electronics retailer Best Shop to sell iPhones and other Apple items. LG also recently offered Apple's iPhone, Apple Watch and iPads on an online mall for its executives and employees. This came as a surprise as LG had offered only its own products via this mall previously.
LG Uplus, LG's telecom affiliate, is also known to be developing an Apple iOS-compatible system for use by LG executives and employees.
An ad for LG smartphones is seen at a business district in Seoul. Yonhap
The partnership is in the interest of both parties, given LG needs to fill the vacancy of its smartphones with new products for its retailers to sell. LG would not opt to sell items of its local competitor Samsung for clear reasons.
For Apple, this is a prime opportunity to secure a greater slice of the pie, by utilizing LG's key channels. Up until now, Apple only sold its iPhones via its Apple Stores and mobile phone dealerships. The sale of iPhones at LG Best Shop presents an advantage for Apple in terms of securing regional offline sales channels, given LG Best Shop has outlets across the country.
"There appears to be no good reason to stop Apple from selling its items on LG's online mall for employees. As for Best Shop, selling iPhones there could enable iPhone purchasers to turn their eyes to LG's other products," an industry official said.
Apple is also projected to open Korea's third Apple Store in Seoul's shopping district of Myeong-dong, for a greater focus on the local market. Apple Korea is currently hiring for 11 key positions including senior retail managers, logistics personnel and salespeople. The country's second Apple Store opened in the financial business district of Yeouido in December. There is also talk of a fourth store that could possibly open in the southern city of Busan.
An Apple Korea official said he could not comment on the matter.
But another industry official said, "The decision to open a new Apple Store is usually made well in advance, which means the possible opening of a third store is not a response to LG's smartphone exit.”