Well, they are not going to launch a new premium smartphone at an affordable price, but they have chose to sell refurbished phones for a lower price.
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When contacted to speak on the matter, a spokeswoman of the Korean company told Reuters that Samsung “does not comment on speculation”.
Apple, one of Samsung’s biggest rival has been pushing hard in its drive to sell refurbished phone in India. Some of the company’s fans have been arguing that they should try being more active in the lower ends of the market instead of focusing on the top exclusively. The growth in mobile phone markets has slowly started hitting the plateau, so the company wants to increase the cost efficiency by operating at a margin of over ten percent. Samsung is holding an event in China on August 27 where we expect it to announce the newer high-capacity model, and this may come at the same time.
Samsung’s plan to sell refurbished flagship phones seems like an obvious move, but the report does note that there is a risk involved. As the importance of used handsets grows, it’s likely that more manufacturers will develop their own refurbishment programs. Now, it appears as though Samsung is getting ready to launch a new program that will see it refurbish and sell all those used phones. Typically, electronics companies like Apple refurbish devices by installing new batteries or new cases, and then sell them on again at a discounted rate. However, the idea of selling of refurbished versions of phones may just be a dream comes true for hundreds of people who envy the Samsung device. The average smartphone in that country sells for less than $90, and the Korean phone maker could be aiming at that price range.
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Deloitte says the used smartphone market will be worth more than $17 billion this year, with 120 million devices sold or traded in to manufacturers or carriers – around 8 percent of total smartphone sales. However, with every new release, the prices too are hiked. Still, adding so many applications and modifications to the standard Android interface can confuse users, especially those coming from other Android smartphones, so we can understand where those complaints are coming from.
