Samsung intends to offer discounted refurbished models of its premium smartphones to customers
What is a refurbished phone?
Refurbished phones have already been used (not to be confused with an ex-demo phone. These phones have been sold or traded to a business that performs quality checks and restores them to the highest level of usability.
Frequently, this entails changing the battery or fixing a cracked screen. Mainly reconditioned high-end smartphones from brands like Apple and Samsung are available. After that, they will grade the refurbished Samsung phone, typically according to appearance.
Please read the fine print, as there is no standardized grading system. The cheapest phone will typically have moderate to severe wear.
As early as next year, Samsung intends to start selling refurbished used models of its high-end smartphones, a person with direct knowledge of the situation told Reuters. After reviving its mobile profits by restructuring its product line-up, the South Korean technology company is looking for ways to maintain earnings momentum.
Samsung wants to maximize cost-effectiveness and maintain operating margins above 10% as the growth of the global smartphone market reaches a plateau. The leading smartphone manufacturer in the world will refurbish expensive devices that customers who enrolled in one-year upgrade programs in countries like South Korea and the U.S. returned to the business.
The person, who wished to remain anonymous because the plan had not yet been made public, claimed that Samsung would resell these phones for less money.
The source declined to provide information on the amount of a discount. It would sell the refurbishedsamsung phones in the markets in which they would sell or the potential sales volume for Samsung’s refurbished devices.
According to a Samsung spokeswoman, the company declines to comment on rumors. It was unclear how much they would change the phones. The refurbishedsamsung phones frequently have new batteries or casings installed.
According to BNP Paribas, Samsung’s flagship Galaxy sells 51% of the original price in the U.S. market. At the same time, rival Apple’s iPhone has a resale value of approximately 69 percent of its actual price after a year from launch.
Refurbished Samsung phones could aid vendors like Samsung in expanding their presence in developing nations like India, where most consumers cannot afford high-end devices that cost around $800. Apple does not release sales data. It sells refurbished iPhones in several countries, including the U.S.
Selling used phones may enable Samsung to fend off Chinese competitors with lower prices who have been eroding its market share. It free up some cash for other investments or increased marketing spending.
With 120 million devices sold or traded to manufacturers or carriers, the used smartphone market, according to Deloitte, will be worth more than $17 billion this year and account for about 8% of all smartphone sales. With fewer technological breakthroughs, some market experts anticipate that the used market will expand quickly.
In Deloitte, “some consumers may prefer to buy SecondCell. They used premium models instead of new budget brands, potentially cannibalizing sales of new devices from those budget manufacturers.”
Reviewing the refurbished Samsung phone Galaxy S21 would be incomplete without comparing it to the Galaxy S20 and Galaxy S21. For two reasons, Samsung has removed several features from this device, most notably the Galaxy S20 from 2020. The S21 launched with a starting price of £729, compared to the Galaxy S20 5G’s starting price of £899.
The first is that Samsung wanted to lower the price of this device. The second is that Samsung is emphasizing the Samsung Galaxy S21 Ultra, which is the pricier and slightly flashier model.
Risk of cannibalization
Samsung’s refurbishment program, the specifics of which, according to the source, could be finalized as early as 2017. It could assist the company in making money from outdated high-end smartphones that users were returning for newer models.
The Galaxy S7 and Galaxy Note 7, the company’s most recent premium smartphones, have received positive reviews, indicating cheaper, refurbishedsamsung versions may be well-liked. The 32-gigabyte Galaxy S7 edge retails for $792 at Verizon Communications in the United States, while Note 7 costs $864.
Through increasing mid-tier sales, the program might aid refurbished Samsung phones in maintaining market share in developing nations. According to the source, enterprise clients who want specific security or software products pre-installed on phones to give to their employees may also be interested in refurbished phones.
Offering refurbished Samsung phones products runs the risk of potentially undercutting sales of Samsung’s other mid-range products.
Are they more environmentally friendly?
The better for the environment, the longer you keep your phone. Retaining a phone for an additional year beyond the typical two and a half reduces its overall CO2 impact by 30%.
The phone’s manufacturing accounts for up to 95% of the device’s overall CO2 emissions over its typical two-year lifespan. And number of rare materials required, smartphone production is carbon-intensive. These need to mined, which depletes finite reserves and releases carbon.
And technology’s effects on the environment are only getting worse . They though devices have become smaller over the years. A McMaster University study in Canada found that the global carbon footprint contribution of the information. The communication industry tripled between 2007 and 2016.