Samsung To Resell Second Hand Premium Units At A Cheaper Price Next Year

Samsung and cheap are two words that doesn't come a long together until Samsung announced that they are planning to sell second hand Samsung phones at a very discounted price.

In the smart phone market battle, there's no other worthy opponent to iPhone other than Samsung. And the tag price comes with it too. But according to an anonymous source reported by Reuters, the South Korean tech giant plans to launch a program reselling refurbished Samsung phones from returned units from users who signed up from annual upgrade programs in South Korea and in the US. The plans on the resale program are being finalized and the program is expected to be launched by 2017. The discount, however, is not yet disclosed. A second hand phone probably 1 to 2 years old is actually not a bad thing especially when it came from Samsung. So lets put it this way, you can buy this year's Galaxy S7, S7 Edge Variant and Note 7 next year at a discounted price. Sounds a really good deal, right? You'll probably save up your Christmas bonus this year.

In the recent years, Samsung sales decline due to the rise of several smart phone manufacturers mostly based on China. This strategy by Samsung hopes to rival with low priced Chinese phone brands. Brand new premium Samsung Galaxy S7/S7 Edge usually retails to around $670 and $780 respectively. But a flagship smartphone from China manufacturers retails to just $300-$400. Samsung must really go more than 50% discount to really compete with rivals' retail price.

According to Reuters, the said program can also "cannibalize" Samsung's sales in their mid-ranged phone category which is by the way, a lot. Samsung's ultimate rival, Apple, on the other hand has been doing the refurbished reselling program for years now but they are quite secretive about its sales information.

The resale program plan is limited to Samsung's mobile division. If you are wondering will they do the same with other Samsung electronics? So far, no.