Starting next year, Samsung plans to sell refurbished versions of its own smartphones. Devices that get sent back to Samsung after their owner upgrades to the newest model will be used as a refurbished device.
Emerging markets
Refurbished sales could be an interesting tactic in emerging markets like India, where smartphone prices are markedly lower than elsewhere. These used smartphones can therefore serve as a cheaper alternative to the brand’s new devices.
Samsung could also possibly use these devices to compete with several Chinese rivals that launch cheap devices and steal away Samsung’s market share. According to Deloitte, more than 17 billion dollars’ worth (15 billion euro) of refurbished devices will be sold worldwide in 2016 alone.
The company will need to make sure it does not cannibalize its own sales channels: part of the customer base may choose to buy a refurbished device instead of an expensive new device or a cheaper mid-range device.
This new strategy means Samsung follows its eternal rival Apple, which also sells refurbished devices in a similar attempt to gain ground in emerging markets.
