Samsung to offer a refurbished smartphone program?

Samsung to offer a refurbished smartphone program?
Looking for a way to battle back against low priced Chinese smartphone manufacturers that have been eating into its market share, Samsung might be planning to offer refurbished versions of its high-end handsets. This is based on a speculative report published on Monday morning. The plan to sell previously owned Samsung handsets could start as soon as next year.

Samsung has bounced back in 2016 and its shares recently hit an all-time high. Second quarter earnings were strong and the company would like to keep its operating margins above 10%. To accomplish that, Samsung would have to stay away from trying to match prices with companies like Xiaomi. Instead, the manufacturer will take the high end handsets that have been sent back to the company as part of its one-year upgrade programs in the U.S. and South Korea, and sell those phones to consumers at a lower price.

Key details, such as the amount of the discount that Samsung would use to compute the price of the refurbushed models, was not revealed. Also unknown is the number of such handsets Sammy might offer, and the countries where such a program will be run. Typically, a used Samsung phone sells for 51% of its original price in the U.S., according to brokerage house BNP Paribas. A used iPhone in the U.S. will normally be priced at 69% of its original cost. That pricing might give Samsung a competitive advantage in the market for refurbished high-end phones.

Apple is trying to get permission from the Indian government to sell refurbished iPhones in India. This could be a great location for Samsung to sell its used phones as well. Despite its status as one of the largest smartphone markets in the world, low per capita income means that most Indian consumers cannot afford the latest iPhone or Galaxy S model. In fact, 70% of new smartphone purchases in the country last year were priced under $150 USD. 

Samsung refused to comment on the speculation, noting that it doesn't respond to rumors.

source: Reuters

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12 Comments

1. mammary.moon

Posts: 31; Member since: Jun 30, 2016

whats wrong with the indians ? Refurbished phones by the manufacturer itself and manufacturer warranty is great . Especially with their peanuts salary

6. YOURDADkid unregistered

Nothing Wrong with Indians. I agree with your point when you say "Refurbished phones by the manufacturer itself and manufacturer warranty is great" but I completely disagree with your point "Especially with their peanuts salary" Get your facts clear before you speak OR comment something. If you don't find the facts let me know. I am better in opening your eyes as well as your A***.

11. jalebi2000

Posts: 181; Member since: Mar 01, 2015

Apple was trying to sell crap first gen phones to indians that dont know much about tech. It was around 100 for a 1st gen iphone and some people actaully bought it for that price. Also apple wanted to make a temple to sell iphones in which may have got some officals not so happy lol

2. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

I hope the Indian government stop Samsung as well. Otherwise India would be forever getting the old handset.

3. ibend

Posts: 6747; Member since: Sep 30, 2014

why not? they still can buy new handset if they can pay :-/

4. zunaidahmed

Posts: 1185; Member since: Dec 24, 2011

Lol, I find it funny you didn't say that when Apple ask to do it. This just show Samsung is actually starting to use the exact same business model Apple used for the last 6 years

5. AlikMalix unregistered

Yep, exactly why I'm here, wanted to see how many hypocrites would call this a great idea by Samsung (and called it money grubbing, junk selling, or w/e when Apple did).

8. YOURDADkid unregistered

GOV has not approved it yet and its just rumor and in fact Samy hasn't confirmed it yet. So hold your tongue before you speak brother.

9. AlikMalix unregistered

That's not the point... Whether Samsung is gonna do it, or not gonna do it, didn't even plan to do it. If given the news, these haters are always back pedaling: If Apple to do it = Bad, if Samsung/Android to do it = Good.

10. YOURDADkid unregistered

Well for me if Apple do it = Bad and if Samsung/ Android do it = Bad. Indians don't want Refurbished phones and we never asked for. OEMs who use such strategies are not going to work in Developed / Developing countries. Apple already got the lesson when Indian GOV refused the proposal. Samsung should get the clear message from that.

12. jalebi2000

Posts: 181; Member since: Mar 01, 2015

Well it depends on price. Apple refurb is gonna be higher than samsung. Although i hope samaung doesnt do a hardcore rippoff

7. YOURDADkid unregistered

Yes, our GOV will stop them. We are not here to use the Refurbished phones. People throw the money easily and Indians have lot to spend. So we don't want Refurbished phones.

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