A refurbished smartphone may not sound too appealing, but what if it was refurbished by the same company that makes them and then resold at a discount? It seems Samsung is planning to do just that. Image INQUIRER.net
The mobile phone market has become a cutthroat place with competitors like ASUS, Huawei, and Xiaomi offering devices equipped with high-end specs at much lower prices than the leading Apple and Samsung models. In response, Samsung is preparing to launch a program that will see refurbished high-end smartphones hitting the stores once more.
According to a report on The Verge, the new program will leverage on the returned handsets from its upgrade program in markets like South Korea and the US. These refurbished devices will then be resold at lower prices. How much discount will be given will need to be verified once Samsung makes the formal announcement.
Samsung has developed a reputation for having fast turnarounds for their smartphones, leaving the market saturated with Samsung devices in various price points. This resale program will apparently help to sustain the mobile business as well as maximize the cost efficiency of their products. It will also help to keep operating margins above 10 percent.
Apart from having no announcement yet as to the levels of the price cuts, it is also uncertain where Samsung plans to run the resale program. Developing markets such as the Philippines could be one of the company’s targets. It can also be implemented in places such as China where their devices are being undercut by local competition.
Whatever Samsung’s plans are, being able to purchase refurbished high-end devices like S7 and Note 7 with a big discount will surely be music to any gadget lover’s ears. Alfred Bayle