In June quarter, Samsung had nearly ten percent more U.S. market share than Apple, as per Gartner. To keep the momentum going, Samsung could start selling used versions of its premium smartphones in U.S. as early as next year, “a person with direct knowledge of the matter” told Reuters.
“As growth in the global smartphone market hits a plateau, Samsung wants to maximize its cost efficiency and keep operating margins above ten percent,” said Reuters.
Samsung’s alleged plan is to refurbish premium handsets returned by users who signed up for one-year upgrade programs in markets such as South Korea and the United States, and resell them at a lower price.
Apple routinely sells used Macs, iPads and iPods through its refurbished program, and also iPhones in certain markets like the United States. Apple’s used devices are typically factory-refurbished so they look as new, and are sold with a discount.
Refurbs have new batteries and come with Apple’s 1-year warranty. The Cupertino company has been trying to bring refurbished iPhones to India, without much success.
BNP Paribas estimates an iPhone has a resale value of 69 percent of its original price after about one year from launch, versus 51 percent for Samsung’s flagship Galaxy.