Apple is stepping up its game to increase its share of Korea’s smartphone market by diversifying its sales channels, following LG Electronics’ pullout from the smartphone business earlier this year. It is yet to be seen through, whether the U.S. tech giant will be able to lure users of other smartphone models to switch to the iPhone.
Apple began selling iPhones and other smart products at LG’s electronics goods retailer Best Shop this week. LG Best Shop enables Apple to secure an additional regional offline sales channel, given the fact that the retailer has outlets across the country. Previously, the iPhone was only available at Apple’s official store and smartphone dealerships. Apple is also projected to open Korea’s third and fourth official stores, after opening its second Apple store in December of last year.
Apple had a 20-percent share of the local smartphone market in 2020, after Samsung Electronics, which dominated with 65 percent. LG accounted for 13 percent.
Smartphone makers have been keen on securing LG’s share of the market after its exit. Samsung’s share grew to 73 percent in the smartphone market here in the second quarter of this year, while Apple saw its share fall to 16 percent. LG’s share was down to 10 percent.
The smartphone industry is expecting Samsung to benefit from LG’s pullout since their smartphone models have the same Android operating system (OS). Apple has its own, iOS, and this difference is seen as resulting in a tendency for Android-based handset users to stick to Android models, while iPhone users continue to use only Apple’s models.
In addition, those who have switched to the iPhone after using an Android-based model cite the absence of a feature enabling credit card payments via their smartphone as a significant shortcoming.
“One huge inconvenience after switching to an iPhone is its absence of LG Pay. Now I have to carry my credit card around,” an office worker in his 30s said.
Apple operates Apple Pay, but the service is not available here. Apple is known to have reached out to credit card companies here to launch the service, but they appear to be uninterested, due to the high fees Apple demands.
In the past, given the fact that Samsung Pay and other easy payment services are already widely in use, card firms seem to have reached the conclusion that they did not need to take on the additional expenses for the service offered by the iPhone, as it held less than 20-percent of the market share here.
Apple began selling iPhones and other smart products at LG’s electronics goods retailer Best Shop this week. LG Best Shop enables Apple to secure an additional regional offline sales channel, given the fact that the retailer has outlets across the country. Previously, the iPhone was only available at Apple’s official store and smartphone dealerships. Apple is also projected to open Korea’s third and fourth official stores, after opening its second Apple store in December of last year.
Apple had a 20-percent share of the local smartphone market in 2020, after Samsung Electronics, which dominated with 65 percent. LG accounted for 13 percent.
Smartphone makers have been keen on securing LG’s share of the market after its exit. Samsung’s share grew to 73 percent in the smartphone market here in the second quarter of this year, while Apple saw its share fall to 16 percent. LG’s share was down to 10 percent.
The smartphone industry is expecting Samsung to benefit from LG’s pullout since their smartphone models have the same Android operating system (OS). Apple has its own, iOS, and this difference is seen as resulting in a tendency for Android-based handset users to stick to Android models, while iPhone users continue to use only Apple’s models.
In addition, those who have switched to the iPhone after using an Android-based model cite the absence of a feature enabling credit card payments via their smartphone as a significant shortcoming.
“One huge inconvenience after switching to an iPhone is its absence of LG Pay. Now I have to carry my credit card around,” an office worker in his 30s said.
Apple operates Apple Pay, but the service is not available here. Apple is known to have reached out to credit card companies here to launch the service, but they appear to be uninterested, due to the high fees Apple demands.
In the past, given the fact that Samsung Pay and other easy payment services are already widely in use, card firms seem to have reached the conclusion that they did not need to take on the additional expenses for the service offered by the iPhone, as it held less than 20-percent of the market share here.
