Just in:
Ingdan Announces 2023 Annual Results // U.S. Compliance Takes Center Stage at OKX Following Industry Jitters // Octa seeks to clarify Forex swap and swap-free accounts // Experience Ultimate Shopping Freedom at 4.4 Shopee Spree: Don’t Worry, Shop Shopee! // Following the Money Trail: US and UK Investigate $20 Billion in USDT Transfers Tied to Sanctioned Russian Exchange // German Job Market Resilience Bodes Well for Economic Recovery // First-Ever Fortune Innovation Forum Draws Top Global Leaders to Hong Kong, Promoting Agendas On Collective Cross-Sector Advancement // Sharjah Chamber Breaks Ground on Final Expansion with New HQ Pact // TUMI Hosts Global Launch Event in Singapore to Unveil Women’s Asra Collection and Announce Global Ambassador, Mun Ka Young // Samsung Partners National Heritage Board to Bring a Slice of Singapore’s Cultural Heritage to Samsung The Frame TV // New Nylon Constant Torque Hinge From Southco Provides Position Control In A Compact Package // Hong Kong Crypto Exchange Application Stalled by US Lawsuit // Samsung Electronics Launches 2024 Neo QLED 8K, Neo QLED, and OLED Displays to Spark the AI Screen Era // Global Audience to Witness Thrill of Dubai World Cup // Universal Language for Healthcare: General Authority Embraces Global Coding System // Saudi Arabia Unveils Green Financing Tool to Achieve Net-Zero Goals // US reiterates concern over Kejriwal arrest, Cong accounts // Digital Hub Unveiled: Xposure Launches Platform for Global Photography Community // 2024 Lok Sabha Elections Will Be The Costliest One Till Now In The Whole World // Simplified Business Moves for Al Reem Island Firms //
HomeWhat's OnReport Says Samsung May Begin Selling Refurbished Phones Next Year

Report Says Samsung May Begin Selling Refurbished Phones Next Year

Beginning “as early as next year,” Samsung may start selling refurbished smartphones directly to consumers. The new resale program is aimed at strengthening Samsung’s earnings as global phone sales slow down, according to report today citing “a person with direct knowledge of the matter.”

Offering lower-cost refurbished phones could also help Samsung better compete against Chinese manufacturers whose cheap devices have cut into its sales, especially in developing markets.

The report from Reuters from comes on the heels of Samsung’s latest smartphone release, the Galaxy Note 7. While the Note 7 has earned strong reviews, it’s also noteworthy for its steep price, which starts at $849.99. By comparison, the company’s flagship Galaxy S7 (pictured above) and the Galaxy S7 Edge, launched earlier this year, are priced starting at $670 and $770, respectively.

ADVERTISEMENT

Resale a ‘$17 Billion Market’

Samsung plans to refurbish and resell high-end devices that come back to the company from customers on one-year upgrade programs that are offered in the U.S., South Korea and other markets, according to Reuters. No details were available on how refurbished phones would be priced or how many might be made available.

The report cited research from the financial services firm BNP Paribas that said the average resale value of a refurbished Samsung Galaxy phone is about 51 percent of its original price, compared to the Apple iPhone’s higher resale value of 69 percent. Reuters noted that Apple does not provide detailed sales information about refurbished iPhones.

In a forecast for 2016, the auditing and advisory consulting firm Deloitte called the sale of used smartphones “the $17 billion market you may never have heard of.” It predicted some 120 million used smartphones would be resold this year, compared to the 80 million sold in 2015.

Deloitte noted that smartphone vendors gain several benefits from a strong resale market. It said resales encourage some smartphone owners to replace their devices with new ones, which boosts vendor revenues. A strong secondhand market also makes devices more affordable to buyers on lower budgets, so manufacturers don’t have as much need to create “less profitable, budget variants of their devices,” Deloitte added.

Rebounding Sales Figures

For Samsung, selling refurbished phones could provide another means of boosting its recently improved financial performance, Reuters noted. After several years of struggling earnings, last month Samsung reported second-quarter earnings that were its best since early 2014. The company attributed the positive results to strong sales of the Galaxy S7 and S7 Edge, as well as to a “streamlined mid- to low-end smartphone lineup.”

In its earnings report, Samsung said that it expected sales to remain “solid” into the third quarter of this year. The company said its aim was to focus on improving year-over-year earnings growth by strengthening its lineup of high-end smartphone and “maintaining solid profitability of mid- to low-end products.”

Reuters noted in its report today that Samsung’s entry into a resale program could interfere with those business goals. “The risk of offering refurbished devices is that they could potentially cannibalize sales of Samsung’s other mid-tier devices,” according to Reuters.

Let’s block ads! (Why?)

ADVERTISEMENT

ADVERTISEMENT
Just in:
German Job Market Resilience Bodes Well for Economic Recovery // Andertoons by Mark Anderson for Fri, 29 Mar 2024 // Aid is at the core of Israel, Palestine struggle to control post-war Gaza // TUMI Hosts Global Launch Event in Singapore to Unveil Women’s Asra Collection and Announce Global Ambassador, Mun Ka Young // A Tightrope Saudi Walk Towards Net-Zero // Melco Style Presents “SANRIO CHARACTERS STUDIO CITY CARNIVAL” – Explore a SANRIO World of Unlimited Love and Cuteness // 2024 Lok Sabha Elections Will Be The Costliest One Till Now In The Whole World // French Leaders Gather for Interfaith Iftar Dinner // Samsung Partners National Heritage Board to Bring a Slice of Singapore’s Cultural Heritage to Samsung The Frame TV // Ingdan Announces 2023 Annual Results // Hong Kong Crypto Exchange Application Stalled by US Lawsuit // Experience Ultimate Shopping Freedom at 4.4 Shopee Spree: Don’t Worry, Shop Shopee! // First-Ever Fortune Innovation Forum Draws Top Global Leaders to Hong Kong, Promoting Agendas On Collective Cross-Sector Advancement // Infineon and HD Korea Shipbuilding & Offshore Engineering jointly develop ship electrification technology // Sunshine’s Debut Features Leave Tech World Scratching Its Head // CABSAT 2024 Ushers in 30 Years of Media Innovation // Octa seeks to clarify Forex swap and swap-free accounts // U.S. Compliance Takes Center Stage at OKX Following Industry Jitters // New Nylon Constant Torque Hinge From Southco Provides Position Control In A Compact Package // Following the Money Trail: US and UK Investigate $20 Billion in USDT Transfers Tied to Sanctioned Russian Exchange //