Mike Wuerthele
Samsung is reportedly planning a dip into first-party sales of refurbished phones, pursuing a strategy similar to Apple in an effort to boost profits.
Samsung itself will refurbish the devices and resell them at a lower price, Reuters sources said. The people declined to say what kinds of discounts would be offered.
Worldwide, the used cellphone market is said to be worth $17 billion annually. Resale values for Apple's iPhones average around 69 percent — in comparison, Samsung Galaxy devices retain about 51 percent of their value on the secondary market.
Samsung is said to be launching the program as one way of keeping operating margins over 10 percent. The company will allegedly harvest phones from users on one-year upgrade plans in markets like the U.S. and South Korea, though it's not clear in which markets the phones will be resold. Details could be finalized sometime in 2017.
Apple has been selling first-party refurbished products for well over a decade. It does not, however, sell refurbished iPhones in its core markets, presumably worried that people will see more value in a used device. A new iPhone typically starts at $649 without a contract.
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15 Comments
They're also dropping "store" from their store branding.
I wonder how many people are in there?
Hilarious, with out even considering the fact that samsung's phones can hardly be upgraded software wise after one year can a galaxy even work after a year ? I wonder ? Do they actually think apple makes most of its massive profits from refurbished handsets ? It's amazing for a company that's been lavishly "admiring" Apple for so long you'd think surely by now might have learned the simple trick to Apple's success GREAT USER EXPERIENCE sammy focus!!!! Man it's real simple. Or maybe its not ;)
And in other news, Samsung also announced plans to build a massive circular all-glass headquarters complex. "It's really the only possible design for such a building," said a company spokesman. "And as such any similarity to any other complex by any other company that may or may not be under construction is entirely unavoidable."
Refurbished sales are reportedly "smooth".
I don't get this. Wait a month after release and carriers are basically giving Samsung phones away for free.