Even though Samsung is the world’s largest maker of smartphones, it does not necessarily make the most money in the industry. That honour goes to Apple. As such, there are two ways the company can continue making money off its smartphone business: by making more and more new smartphones or refurbishing older smartphones and offering them in the market afresh.
The latter option is something that Samsung’s rival, Apple, has managed to do so well since it runs a comprehensive iPhone upgrade program. Other device makers do the same too. Samsung, too, runs a similar program in select markets like the US and Korea and as such, is said to be mulling a similar approach.
Reuters reports that this might take effect from early 2017 and will see the brand refurbishing phones returned, in a bid to upgrade its programme in countries like U.S and South Korea, to sell in emerging markets.
Reuters also report that Samsung wants to increase its cost efficiency and keep operating margins above ten percent. Sales of refurbished phones at a reduced price would maintain competitiveness in countries like China where strong competitions arise from brands like Huawei and OPPO. This however might not work in countries like India where the government rejected a bid by Apple to sell refurbished phones.
As much as this might boost Samsung’s revenue, it will definitely affect sales of less expensive phones by the brand like the Galaxy A series in emerging markets.