In a bid to increase the popularity of its grade A phones, Samsung mobile is pointing finishing touches to its plan to start selling refurbished phones from countries like United States, UK, Canada back to poor countries like Nigeria and other Asia countries. This move will see rejected phones being modeled and send to Africa and other countries in which refurbished phones are not a crime.
While this method might be welcomed by average income earners that do not have enough to buy expensive phones like Samsung S and Notes series. It will also put a great setback to other phones being produced by Samsung as many might want to buy the refurbished phone instead of buying a new one with less power. The sales of Samsung new samsung phones with less functionality might also dwindled greatly among the developing countries not even when other manufactureres are coming great specs and with moderately priced phones
Of a recent, Samsung Galaxy s7 Injustice edition was selling nothing less than #310,000. One of the reasons Samsung want to be given us refurbished phone?
Reuters also report that Samsung wants to increase its cost efficiency and keep operating margins above ten percent. Sales of refurbished phones at a reduced price would maintain competitiveness in countries like China where strong competitions arise from brands like Huawei and OPPO. This however might not work in countries like India where the government rejected a bid by Apple to sell refurbished phones.
As much as this might boost Samsung’s revenue, it will definitely affect sales of less expensive phones by the brand like the Galaxy A series in emerging markets.