14 DAY TRIAL // Samsung is said to launch a refurbished smartphone program in the near future, which would allow customers to buy used and refurbished smartphones made by the South Korean company. Sources have stated for Reuters that the program would be announced early next year.
Samsung is said to be working on developing a refurbished program for selling used versions of high-end smartphones developed by the company. The South Korean firm might be looking for ways in which it can sustain earnings momentum, after it managed to successfully restructure its product-line and revive mobile profits. Reuters reported that Samsung intends to maximize cost efficiency and keep operating margins above 10%.
Samsung intends to refurbish premium smartphones that were returned to the company by customers who signed up for one-year upgrade programs. The program will reportedly debut in markets such as the United States and South Korea.
Refurbished smartphones would be resold at a lower price, but there's no information at this point regarding the discount provided for these phones, additional markets in which the program would be launched or even the number of refurbished smartphones that Samsung intends to sell.
The refurbished smartphone program could have great implications for Samsung
The South Korean smartphone manufacturer could replace the casing and battery on the refurbished phones, as these two components are usually the ones to get affected after one-year usage.
Reuters reported that smartphones in Samsung's Galaxy line usually re-sell for 51% of the original price in the US market, but this program could have even greater implications for the company.
Samsung could thus strengthen its presence in emerging markets, by making its flagship smartphones more accessible to the public. However, this move could also affect its line of mid-tier smartphones as they would be in the same price range as refurbished premium phones.
Nevertheless, Samsung's latest flagship smartphones, the Galaxy S7, Galaxy S7 edge and Galaxy Note 7, which were very well received on the market, would become even more accessible to the greater public through the refurbished premium smartphones program.