Samsung to Sell Refurbished High-End Phones

by Edgar Hayes August 24, 2016, 4:10
Samsung to Sell Refurbished High-End Phones

Samsung reportedly hopes to bolster earnings in its mobile device business by selling used smartphones. The new program should launch as early as next year (2017).

Still, Samsung has a deep bench in terms of smartphone offerings, and being able to double-dip on revenue on a decent percentage of them, especially in cost-conscious markets, is a big carrot to recommend the plan. Samsung will have to sell the refurbished premium smartphones at less than premium prices. After all, in the smartphone market, refurbished devices have just as much appeal to enterprise companies looking for a certain pre-installed software product or feature to give it to their employees.

"Samsung does not comment on rumor or speculation", a company spokeswoman said in a statement.

The world's top smartphone maker will refurbish high-end phones returned to the company by users who signed up for one-year upgrade programs in markets such as South Korea and the United States. The phones will be sold t lower prices even though Reuter says the amount of discount is not known yet. However, many experts believe that the refurbishing process will most likely be in the form of fitting new parts, casing or battery. Samsung's main rival, Apple, also sells refurbished devices and those devices hold about 69% of the original value after a year. Samsung is likely to target emerging regions that can not now afford its premium devices, selling year-old handsets at a significantly lower cost. In the case of India, for example, phones costing $90 or less are the most popular.

However, selling used phones in India may not be as easy as it sounds.

The expensive Samsung phone you've always dreamed of owning might soon be available at a snip of its original price. A strong secondhand market also makes devices more affordable to buyers on lower budgets, so manufacturers don't have as much need to create "less profitable, budget variants of their devices", Deloitte added. While, some analysts believe the market will grow due to fewer technology breakthroughs.

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