Samsung to Start Selling Refurbished Phones Next Year

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Samsung will likely follow the steps of its biggest competitor, Apple, as the electronic giant plans to start selling refurbished premium smartphones by 2017.

Reuters reports that Samsung is looking at alternate revenue schemes other than the smartphone line-up offering. To do this the technology firm will refurbish high-end phones from the Note series, S series and more returned to them by consumers who sign up for one-year upgrade programs in South Korea and US markets. The company will then re-sell these phones at a much lower price in the market. That expensive Samsung phone you have been eyeing for long might just be yours soon!!!

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Unlike Apple, Samsung will sell its smartphones across a wide spectrum of prices. Refurbished versions of used high-end smartphones will sell at a discount and could possibly increase the sales of Samsung’s mid-priced devices. The company’ flagship Galaxy devices will sell for about 49 percent discount from their original price in the U.S. a year after launch, BNP Paribas said.

In the second financial quarter of 2016, Samsung recorded  a jump in profits by 18 percent ,thanks to the strong sales of the Samsung flagship Galaxy S7 and S7 Edge models. While Samsung is enjoying the rewards of launching popular, premium devices, a refurbishment program could help the company in tackling markets where cheaper devices are quite popular.

Going by Deloitte’s estimates, the used smartphone market has a significant presence and is expected to be more than $17bn (N5.9tri)) this year. However, it is not clear to what extent Samsung will refurbish the phones.

Normally, refurbished sellers claim premium models are fitted with new company parts such as a new casing or battery to give them a longer lifespan.The move is to break into emerging markets where most people cannot afford phones that cost $800 (N276, 000) to $900(N310, 000).

 Apple is already doing this through authorised re-sellers in India where refurbished iPhones are sold between $300 (N104, 000) and $500(N173, 000). This encouraged a lot of iPhone lovers who had earlier settled for other brands to invest in such schemes.