Why is Samsung selling pre-owned phones?

Korean electronics firm gearing up to enter the refurb market

Samsung is preparing to sell second-hand versions of its own smartphones for lower prices from next year, it has been reported.

The South Korean company plans to sell on previously-owned premium models returned to vendors by customers on one year upgrade contracts, a source told Reuters.

The refurbished handsets could sport a new display, battery or outer casing, depending on its age or damage sustained.

The source refused to disclose how significantly the prices would be reduced, or the markets Samsung expects to sell the phones within.

Advertisement
Advertisement - Article continues below
Advertisement - Article continues below

Samsung currently sells certified pre-owned phones in the US, typically offering discounts of between $100 to $250. The models ship with the same one-year warranty as new handsets, and

The new programme is likely to be part of a strategy to push its expensive high-end handsets into emerging markets such as India.

Budget manufacturers including Micromax, Oppo and Xiaomi have chipped away at Samsung's share of the low-end Android market in recent years. Selling previously pricey handsets at a reduced cost has the potential to reach many more customers who might then be tempted to shell out for full-priced models in the future, but runs the dual risk of devaluing Samsung's market stance as a premium manufacturer.

Apple has successfully sold refurbished iPhones in some countries for a number of years, albeit not the UK, which typically sell for significantly more than Samsung models.

An iPhone tends to retain around 69% of its market value around a year after its launch, while the value of Samsung's premium Galaxy range falls to around 51% of its original price.

Samsung's new project is a bid to narrow the gap between the two, controlling the pricing while simultaneously expanding its market share.

Featured Resources

What you need to know about migrating to SAP S/4HANA

Factors to assess how and when to begin migration

Download now

Your enterprise cloud solutions guide

Infrastructure designed to meet your company's IT needs for next-generation cloud applications

Download now

Testing for compliance just became easier

How you can use technology to ensure compliance in your organisation

Download now

Best practices for implementing security awareness training

How to develop a security awareness programme that will actually change behaviour

Download now
Advertisement

Recommended

Visit/mobile/23617/the-best-smartphones-to-buy
Mobile

Best smartphone 2019: Apple, Samsung and OnePlus duke it out

24 Dec 2019
Visit/hardware/354336/the-it-pro-products-of-the-year-2019-all-the-years-best-hardware
Hardware

The IT Pro Products of the Year 2019: All the year’s best hardware

24 Dec 2019
Visit/hardware/tablets/354276/samsung-galaxy-tab-s6-review-the-best-android-tablet-out-there
tablets

Samsung Galaxy Tab S6 review: The best Android tablet out there

4 Dec 2019
Visit/mobile/google-android/354189/samsung-galaxy-a90-5g-review-simply-the-best-value-5g-phone
Google Android

Samsung Galaxy A90 5G review: Simply the best value 5G phone

22 Nov 2019

Most Popular

Visit/microsoft-windows/32066/what-to-do-if-youre-still-running-windows-7
Microsoft Windows

What to do if you're still running Windows 7

14 Jan 2020
Visit/operating-systems/25802/17-windows-10-problems-and-how-to-fix-them
operating systems

17 Windows 10 problems - and how to fix them

13 Jan 2020
Visit/policy-legislation/data-governance/354496/brexit-security-talks-under-threat-after-uk-accused-of
data governance

Brexit security talks under threat after UK accused of illegally copying Schengen data

10 Jan 2020
Visit/hardware/laptops/354533/dell-xps-13-new-9300-hands-on-review-chasing-perfection
Laptops

Dell XPS 13 (New 9300) hands-on review: Chasing perfection

14 Jan 2020