Samsung is to begin selling refurbished smartphones at a discount, according to sources familiar with its plans. 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. However, only users who have signed up for Samsung’s one-year upgrade programs in the company’s biggest markets-the USA and South Korea will be eligible. Going refurbished can be tricky as well, but if a new report pans out the Samsung Refurbished Smartphone program may be a great way to go in the near future.
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The source refused to disclose how significantly the prices would be reduced, or the markets Samsung expects to sell the phones within.
In June Patently Apple posted a report titled “Apple’s Refurbished iPhone Program Rolled into Korea this week …” Yes, the company is preparing a new program under which it will be selling these refurbished, used variants to the consumers. However, with the recent launch of the Samsung Galaxy Note 7, it is rumored that Samsung is gearing up to release an Injustice Edition Galaxy Note 7, similar to that of the Galaxy S7 Edge.
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.
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The risk of offering refurbished devices is that they could potentially cannibalize sales of Samsung’s other mid-tier devices. The Indian market is one every smartphone maker is targeting, and Samsung is also aiming to boost its presence there. Would you buy a refurbished device? The company is likely to finalize the program in 2017 and will offer the refurbished phones that are obtained by users who have upgraded to a newer version. He went on to cite the Apple phone’s impressive track record at outperforming numerous world’s fastest smartphones.
