Aiming to keep its growth going, Samsung Electronics is planning to launch an official refurbished phone resale program of its high-end phones as early as next year.
Shenzhen, Guangdong -- (ReleaseWire) -- 08/24/2016 -- According to report by Reuters, Samsung Electronics, the world's largest smartphone manufacturer, is looking for ways to keep its momentum going after enjoying strong growth with its recent line of mobile phones, especially Samsung Galaxy S7 and Galaxy S7 edge. The company is planning to launch an official refurbished phone resale program as early as next year.
The company plans to refurbish its high-end phones, most likely its Galaxy S and Galaxy Note line, from customers who return their phones under a one-year upgrade program. The refurbished phones will come from customers in South Korea and the United States. Then Samsung Electronics will turn around and sell the refurbished phones at a lower price for the customers who can't afford them at full price, which gives Samsung fans an easier way to acquire the latest handsets, like Galaxy S7 and Galaxy Note 7. It's not clear what the price of the phones will be or how many refurbished handsets the company is aiming to resell.
Considering the popularity of Samsung's newest phones, including the newest Galaxy Note 7, the potential demand for refurbished products is massive. There will always be people looking for a cheaper alternative to the expensive devices, especially considering the nearly $800 for a high-end phone like the Galaxy S7 edge. Selling cheaper, refurbished phones could help Samsung occupy the emerging markets such as India where people have huge phones demand but can't afford high-end phones.
For Samsung Electronics, selling refurbished phones would also open a new perennial war with Apple Inc., which sells refurbished phones both in the U.S. and in India. According to BNP Paribas, Samsung's main rival Apple' iPhones has a resale value of around 69 percent of its original price around a year after launching in the U.S, while Samsung's flagship Galaxy sells for 51 percent of the original price in the U.S market.
Selling used phones could also help Samsung compete with lower-cost Chinese rivals like Huawei, Xiaomi and Vivo, which have been eating into its market share. In China, for example, the low cost smartphones have cut into Samsung's market share. Lower price entry level feature packed smartphones, like the Honor 8, have even started to hit American stores.
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