Samsung is gearing up to woo its users in more ways. The South Korean giant is now bulking up against the low-priced Chinese handsets. To fight back for its market share, Samsung is planning to come up with refurbished variants of its flagships. A new report suggests that the company is pretty serious about the project and will be launching the refurbished range by next year.
In 2016, Samsung recorded significant earnings in the second quarter. The year also witnessed company’s share touching an all-time high. The second quarter earnings were better than Apple, with operating margins likely to stay above 10%. Samsung does not want to get into low-price smartphone wars. The company has a work plan to offer high-end handsets at low prices. It won’t be competing with its Chinese manufacturers such as Xiaomi, Oppo, Vivo, and much more. In the low budget segment, Samsung already has devices in the J series and A series such as Galaxy J5 (2016), Galaxy A9, and many others.
Alternately, the company will take its flagships that have been shipped back to it as a part of its one-year upgrade programs in the U.S. and South Korea. The company has plans to refurbish flagship-level handsets and sell them at comparatively lower prices than original.
The sources have not yet revealed the pricing and discount strategy for the refurbished handsets. It is also not clear that on what basis and how Samsung would judge the pricing of the refurbished model. Among other speculations, it is also unknown that what phones would be on offer. Also, in what countries Samsung would run this program.
According to brokerage house BNP Paribas, in the US, a used Samsung phone sells for around 51% of its real price. On the other hand, a used iPhone sells for 69% of its original price. Such pricing could give a headstart to Samsung in the market of refurbished handsets. Typically, for a device to be acceptable for a refurbishing program, it requires being in a nearly perfect stage (cosmetically) with 100% of the functionality. The source says that the smartphones are most likely to be sold at a lower price, but the exact pricing is unknown.
Samsung has not yet commented on this news, yet. Like we always say, it would be better to take such speculative reports with a pinch of salt. However, the ability to purchase a refurbished Note 7 for half the price, next year would be tempting to many buyers.
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