[Asia Economy Reporter Eunmo Koo] Apple has pulled out the card of LG phone trade-in policy to block Samsung Electronics' expansion of market share in South Korea.
According to the telecommunications industry on the 28th, Apple is implementing a trade-in policy from today until September 25, offering users who return LG Electronics smartphones and switch to the iPhone series a certain trade-in value plus an additional compensation of 150,000 KRW.
This policy is separate from the trade-in programs operated by telecom carriers. While existing trade-in programs are insurance-type plans that users subscribe to when purchasing the device and pay a monthly fee, this policy provides benefits offered by Apple and telecom carriers regardless of subscription status.
The eligible LG Electronics models for trade-in are 4G and 5G smartphones that have been used for more than one month until just before the exchange; 3G and folder-type smartphones are excluded. The eligible Apple models for exchange are two types: the iPhone 12 and iPhone 12 mini. Applications can be made at the three major telecom carriers' agencies. Applications cannot be made at Apple Stores or reseller shops.
This trade-in policy is implemented only in South Korea and is interpreted as a strong measure to prevent Samsung Electronics from expanding its market share in Korea. This is the first time Apple has introduced a trade-in policy targeting other companies' models, and unusually, Apple has decided to bear all costs for the additional 150,000 KRW compensation. According to the industry, over 80% of subscribers to LG Electronics' 'V50 ThinQ' trade-in price guarantee program, which started on the 7th by the three major telecom carriers, have chosen Samsung's Galaxy smartphones.
Samsung Electronics is also launching a 'trade-in additional compensation program' for LG Electronics smartphones starting today in response to Apple's move. The compensation program, running until the 30th of next month, offers customers using LG Electronics smartphones such as the V50 ThinQ an additional 150,000 KRW on top of the trade-in market price when they open a new line with Samsung's Galaxy S21 series, Galaxy Z Fold2, Galaxy Z Flip 5G, or Galaxy Note20 series and return their used phones. Eligible LG Electronics devices for additional compensation upon return include all LTE and 5G smartphones from LG Electronics, including the V50 ThinQ. Interested customers can apply at Samsung Digital Plaza, offline stores of the three major telecom carriers, Hi-Mart, and other electronics retailers.
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