Even though Samsung will continue to focus on its premium range of devices like the Galaxy S7, S7 Edge and the recently-launched Galaxy Note 7, sale of refurbished premium phones at lower prices would let the company compete effectively with low-cost Chinese phone makers in key markets.
Guess who sold more phones than Apple? ... Samsung!
Reuters adds that Samsung will only refurbish and sell premium phones which are returned by existing users after the completion of their one-year upgrade programmes. The refurbishment may include new cases and batteries and probably fresh display screens. According to the Reuters, the programme will be first launched in Korea and the United States, but we expect more regions to be covered in due course.
"Deloitte says the used smartphone market will be worth more than $17 billion this year, with 120 million devices sold or traded in to manufacturers or carriers - around 8 percent of total smartphone sales. Some market experts expect the used market to grow fast as there are fewer technology breakthroughs," said Reuters.
Nine out of every ten smartphones sold worldwide in Q2 were Android ones
As per a recent Worldwide Smartphone sales report published by Gartner, Samsung sold 76.7 million smartphones in the first two quarters of this year and has increased its marker share from 21.8% in 2015 to 22.3% in the process. If refurbished premium phones enter the market, not only will they put a strain on sales of competing Chinese phones, but may also allow Samsung to achieve much greater market share in the next few years.
Samsung sold a mind-boggling 81 million phones in the first three months of the year, markedly increasing its market share and out selling Apple by two to one in the process, according to another report by research firm TrendForce. Samsung's brilliant performance was spurred by its latest Galaxy S7 flagship phone, of which, according to Sammobile, it sold 10 million units in March alone.