Samsung may begin to sell the refurbished versions of its high-end smartphones via a refurbishment program, according to Reuters. It is said to be a part of the company’s plan to sustain the momentum gained in the second quarter earnings.
“Samsung wants to maximize its cost efficiency and keep operating margins above 10%,” said Reuters in the report.
The rate of discount for the refurbished smartphones remains unclear. The refurbished high-end smartphones will comprise of the mobile phones returned to the company by the users who signed up for one-year upgrade programs in markets such as South Korea and the United States. There is no information regarding the markets that receive such smartphones for refurbishment sale. Also, it is uncertain about the number of refurbished devices the company would sell.
Apple has a refurbishment program in which it sells the smartphones at 69% discount from the original price after one year from the launch. It recently tried to sell refurbished smartphones in India, which the Government rejected. “We are not in favor of any company selling used phones in the country, however, certified they may be,” commerce and industry minister Nirmala Sitharaman commented on the issue.
Selling low-cost refurbished high-end smartphones could benefit Samsung to gain few buyers from its Chinese-rivals. It may also help Samsung to bolster its market share in some emerging countries. Reuters predicted a good sale of refurbished smartphone to happen in the enterprise business segment, especially because it’ll appeal the clients who want to load certain security features in the smartphones given to the employees.
Refurbished smartphone market makes 8% of the total smartphone sale and it’s predicted to grow in the upcoming years, according to Deloitte. Source says that Samsung’s refurbishment program may get surfaced by the beginning of 2017.