For a leading smartphone company like Samsung, the only thing better than getting a customer to purchase a flagship smartphone is getting two different customers to purchase the same flagship smartphone.
As Samsung seeks new ways to boost earnings as the high-end smartphone market becomes a far less reliable source of growth, a new report sheds light on one of the new programs the company plans to implement. Smartphone buyers in the US and other markets continue to flock to newer installment plan options that let them make low monthly payments and trade in their phones each year for new models. Now, it appears as though Samsung is getting ready to launch a new program that will see it refurbish and sell all those used phones.
Reuters reporters Se Young Lee and Miyoung Kim stated in a new report on Monday that Samsung will launch a new program as soon as next year that will see Samsung resell used premium smartphones that have been traded in as part of the company’s upgrade program.
“The South Korean technology firm is looking for ways to sustain earnings momentum after reviving its mobile profits by restructuring its product line-up,” the report said. “As growth in the global smartphone market hits a plateau, Samsung wants to maximize its cost efficiency and keep operating margins above 10 percent.”
The report cites just a single anonymous source at Samsung, but Reuters obviously has a solid track record. Details are scarce, however — the reporters couldn’t determine what type of discounts Samsung plans to offer or even in which markets the refurbished phone program might become available.
Samsung’s plan to sell refurbished flagship phones seems like an obvious move, but the report does note that there is a risk involved. If smartphone shoppers have the option of purchasing used phones under warranty directly from Samsung at deep discounts, it could cannibalize sales of new smartphone models to an extent.