According to Reuters, electronics giant Samsung is planning to launch a smartphone refurbishment program as soon as next year. Considering that the current growth in the smartphone market has flatlined, for the most part, the South Korean company is looking for a way to firm up its revenue model.
As a result, the company plans to refurbish high-end phones returned to the company by consumers who signed up for one-year upgrade programs in various markets. The next step would then consist of Samsung re-selling these phones at a lower price. A similar plan is utilised by Samsung’s rival, Apple, who sell refurbished iPhones in a number of markets, including India where most smartphones sell for an average of $90. The rivalry between the companies are legendary, mostly in the form of patent disputes, but it looks like Samsung will aim to take the edge with their refurbishment program. With the program, Samsung may try to dominate markets such as India with low-cost smartphones as well as fend off competition from low-cost Chinese smartphone companies such as Xiaomi.
According to the auditing agency Deloitte, the used smartphone market is worth more than $17 billion in 2016 alone, with 120 million devices sold or traded into manufacturers or carriers.
Samsung’s refurbishment program, details of which Reuters’ source said could be finalised as early as 2017, could help the firm generate revenue from dated high-end smartphones returned by users upgrading to newer versions. It is not explicitly stated how altered these exchanged smartphones will be.
However, the program does have a chance of hitting Samsung’s own mid-tier smartphones, though it’s flagship devices, such as the Galaxy Note 7, should remain largely unaffected.
Source: Reuters
