Samsung News and Updates 2016: Company to Sell Refurbished High-end Phones on the Cheap; How it Will Work
Soon, you'll be able to get your hands on that Samsung Galaxy Note 7 without paying $800.
The world's leading smartphone maker plans to launch a program where they will sell refurbished phones as soon as next year, according to a report from Reuters.
For those who are not familiar with it, manufacturers refurbish secondhand phones by giving them new external casings and new components (if needed) to make them as good as new.
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The program, if true, will be a win-win situation for both Samsung and its ardent enthusiasts. Users can now get premium smartphones for a cheaper price, while the South Korean tech giant stands to make money off the same devices the second time around.
How the program will work
The program will use high-end smartphones returned to Samsung by its users for one-year upgrade programs. The phones will then be resold at a much lower price, though there's no word yet on how big the discount might be or where the program will be available in.
The program is a part of an initiative to sustain earnings, maximize cost efficiency and keep margins above 10 percent. At a time where customers are more intent on using their phones longer, Samsung wants to continue riding the momentum of its high earnings. They have recently posted its best profits in two years.
With the worldwide plaudits it has earned for its new flagship Galaxy Note 7, which have been crowned as the best smartphone currently available on the market, users are likely to be enticed by the offer.
Lowering the price of its best devices, on the other hand, could help fend off cheaper Chinese-based competitors eating into its market. It could also help boost its usership in markets such as India, where the average smartphone sells at $90 and devices pegged at $800 is beyond most customers.
Getting into the refurbishment business
This is not the first time a tech giant has offered refurbishment programs for its users. Apple, its biggest rival, currently sells refurbished iPhones. However, unlike Samsung, they refuse to post their profits on that particular market.
The Californian tech giant has also been trying to break into the Indian market. However, it didn't go well as the government currently implements a "Make in India" policy that encourages companies to manufacture their products within the country.
Reuters noted that refurbished devices could cannibalize sales of new devices. However, lower prices remain a good incentive and can help establish brand loyalty. It can actually give Samsung a deep bench in the smartphone market.
Excited for Samsung's new program? No date is out yet, but chances are that it will launch early 2017.
