Samsung could start selling second-hand phones

Rumours say the South Korean technology firm is seeking new ways to sustain growth

galaxy s7 in phone asylum

Samsung plans to change the strategy in order to increase the level of sales. According to Reuters, the phone company intends to include a program that consists of selling used high-end smartphones but with up to date software.

According to company sources, Samsung will launch this new business in order to maintain profit growth following the restructuring of its product line. As the growth in the global market for smartphones has plateaued in general, the South Korean company is showing interest in maximising cost efficiency and maintain operating margins above 10 percent.

The leading manufacturer of smartphones in the world will renew high-end phones that have been returned to the company by users enrolled in the program of annual device update, in markets such as South Korea and the United States.

Samsung, the source said, could re-sell these phones at a lower price, without giving further details. A company spokesman said the company does not comment on any speculation.

Apple, Samsung’s biggest rival, sells models of its iPhone a year after the launch to 69% of their original price, while the Samsung Galaxy model is sold at 51%, according to analysts at BNP Paribas.

The sale of refurbished phones could help manufacturers like Samsung increase its presence in emerging markets such as India, where high-end devices are often beyond the reach of most buyers.

In fact, Apple already sells refurb iPhones in several markets, including the United States, but does not disclose sales figures for this.