It is not often one finds a company that is keen to put up products made by its competitor instead of its own devices for sale, but this is exactly what LG intends to do. According to a press release issued today by the Korean electronics company, LG will start selling Samsung’s Galaxy Tab through its telecommunication service known as LG U+.
What does a huge electronics company like LG do when it has yet to release its own slate-like PC to compete in the market, but still wants to earn some revenue from the sales of such devices? Simple; reach an agreement with Samsung for the right to sell the latter’s popular Galaxy Tab slates via LG’s very own telecommunication carrier service known as LG U+.
According to a press released issued today, LG announced that Samsung’s Android-powered Galaxy Tab slate PC is slated to hit its carrier service, LG U+, by Wednesday, December 22. The device will be offered at subsidized rates as part of a subscription package.
Under the OZ Pad 4GB and OZ Smart 55 price plans, subscribers can opt to sign up for a three-year contract and receive the Galaxy Tab at no charge, or register for a two-year plan and purchase the slate at a subsidized price of 200,000 won (approx S$228) or 170,000 won (approx S$194)respectively.
Needless to say, LG U+’s move is sure to raise some eyebrows, considering that its affiliated company LG Electronics has already announced plans to launch its own Android tablet sometime in the first half of 2011. However, such action is hardly surprising, as LG is a relatively late entrant to the smartphone and slate PC market, and it is likely that LG U+ could not afford to wait for LG’s upcoming tablet while other carriers overtook it in market share because of its chronic lack of such devices available to sell.
Either way, it does not change the fact that such an arrangement will be beneficial for both parties. Samsung will get to sell more of its Galaxy Tab slates through LG, which in turn stands to gain some revenue from sales of its competitor’s device. And while the amount of revenue that LG hopes to gain for selling the Galaxy Tab is up for speculation, we figure that earning some money from the sale of a competitor’s products is still much better than having no revenue caused by the lack of products to sell.
Source: LG Korea