Refurbished Smartphones Program
According to reports, Samsung is getting ready to launch a new program to sell refurbished smartphones. Through this program, Samsung will sell used high-end flagships phones at a lower price.
Samsung smartphones have very impressive specifications which use the latest technologies. However, all these features cost a lot of money. In order to facilitate users who don’t have a large amount of money, Samsung is launching this new program. Under this program, the company will sell purported refurbished smartphones at affordable prices.
Reuters announced that the news comes from an anonymous source “with direct knowledge of the matter.”
According to the reports, if a customer signs up for the one-year upgrade program in the United States or South Korea, the company will refurbish their used phone. These phones will sell for a lower price. It is expected that the year old phone will be sold for much less than a brand new phone. There is, however, no news on the amount of discount offered to the customer.
Reuters pointed out that with this move the company will try to sustain its earnings. Presently the smartphone market is at a point where it is not making much progress. Samsung is trying to restructure its product portfolio. According to reports Samsung’s aim is to keep operating margins beyond 10 percent. The company will also try to maximize cost efficiency using this program.
There aren’t any reports regarding the countries where these refurbished phones will be sold. However, Samsung can find this scheme beneficial in emerging markets like India. Since most people cannot afford top-notch flagships that cost $800. Selling refurbished phones in emerging markets at affordable prices will likely increase the company’s sales in the country.
Apple is already running its refurbished program successfully worldwide. However, the company has never given details about the program’s success in terms of sales.