Samsung to launch refurbished smartphone service to sell used flagships next year

The company will reportedly begin a fix and resale program soon, according to an inside source.

According to the report, the move is aimed at sustaining earnings momentum after reviving its mobile profits by restructuring its product line-up. This would surely boost the company’s mid-tier market.

“Samsung wants to maximise its cost efficiency and keep operating margins above 10 per cent”, read the Reuters report. The average discount for its refurbished products range from 15 to 20 percent off, which could give you an idea of where Samsung might be targeting for its refurbished Galaxy devices.

According to the reliable source, the top smartphone maker in the world is planning to refurbish their high-end phones particularly those that were returned to the company from users who availed its one-year upgrade programs offered in the USA and South Korean markets.

Samsung would then re-sell these phones at a lower price, the person said, declining to be identified as the plan was not yet public.

Other details, including the price of used phones and which markets they could be sold in, were not available. But most companies that offer such schemes typically replace parts such as the casing or battery.

Samsung could capitalise on the success of the Galaxy S7 with a refurbishment program. Now, the world’s number one smartphone maker, Samsung is also joining the GBs race. Most Samsung’s high-end phones cost as much as $800, which is way too high for consumers in India. From 2017, Samsung should be ready to rival Apple, prepared to sell its high-end handset at a discount if it means more revenue overall.

“Outside of Samsung’s Galaxy S7 flagship, a majority of vendors, including Apple, have found success with more affordable models compared to their flagship handsets”, said Anthony Scarsella, research manager for Mobile Phones. “I view India as where China was maybe seven to ten years ago from that point of view, and I think there’s a really great opportunity there”.

Samsung’s all-new Galaxy Note 7 will hit shops next week and could be the firm’s best ever smartphone. The response has been highly positive.

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