Samsung is planning on launching a program to sell refurbished high-end smartphones from early next year. The company is planning on launching this program to sustain growth and earnings as the smartphone market continues to stagnate and get more competitive.
The company has successfully managed to revive the profits of its mobile division, which have been dwindling for the last 2 years, by restructuring its product portfolio this year. By launching a refurbished smartphone selling program, the company is hoping to maximise cost efficiency and keep its operating margins above 10 percent.
Samsung Electronics Co Ltd plans to launch a program to sell refurbished used versions of its premium smartphones as early as next year, a person with direct knowledge of the matter told Reuters.
The company will be refurbishing high-end smartphones that it will receive from customers who have signed up for its one-year upgrade programs in markets like the United States and South Korea. The company will then re-sell these phones in other markets at lower prices. Refurbished phones usually come with a new casing or battery to ensure optimum performance and have an almost brand new feel to them. This move will allow Samsung to attract customers in emerging markets like India and China where consumers are heavily price conscious.
Refurbished phones usually come with a new casing or battery to ensure optimum performance and have an almost brand new feel to them. This move will allow Samsung to attract customers in emerging markets like India and China where consumers are heavily price conscious. It remains unclear though, as to how much these refurbished smartphones will cost.
Samsung’s key rival Apple already sells refurbished smartphones in many parts of the world, including the United States. The company has also been trying to sell refurbished phones in India, but has failed to get the necessary approval from the Indian government.
[Via Reuters]Like this post? Share it!