Samsung has other plans for its next smartphones in 2017. According to reports, the Korean tech giant is planning to sell refurbished used versions of its premium smartphones by early 2017. Can Samsung make it work?
Samsung 2017 Phones
Samsung is looking into different ways to sustain earnings momentum following a review of its mobile profits. The company reportedly wants to change and improve its product line-up. Since global smartphone market growth has flattened, Samsung is looking for ways to “maximize its cost efficiency and keep operating margins above 10 percent,” according to Reuters.
A person familiar with the matter revealed that Samsung is attempting to refurbish high-end phones from users who returned the devices following one-year upgrade programs in regions like the United States and South Korea. Samsung plans to re-sell the devices at more affordable prices. The person revealed the plans on the condition of anonymity.
However, the source refused to divulge how much discount Samsung is planning to slash off from the devices. There are no details as to how many devices the company will be selling early next year. The Korean tech giant’s plans may be useful in fending off lower-cost Chinese rivals that has been acquiring a large chunk of the market.
“Some consumers may prefer to buy refurbished, used premium models in lieu of new budget brands, possibly cannibalizing sales of new devices from those budget manufacturers,” claimed Deloitte in a report.
According to Android Authority, Samsung wants to keep profit margins afloat for more than 10 percent. However, the report argues that it could be difficult for Samsung to fend off customers from looking into cheaper Android alternatives like OnePlus or ZenFone. Nonetheless, it could be too early to tell until early 2017 when Samsung starts with its plans.