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Samsung Plans To Sell Refurbished High-End Smartphones In 2017 (reuters.com)

An anonymous reader quotes a report from Reuters: Samsung Electronics Co Ltd plans to launch a program to sell refurbished used versions of its premium smartphones as early as next year, a person with direct knowledge of the matter told Reuters. The world's top smartphone maker will refurbish high-end phones returned to the company by users who signed up for one-year upgrade programs in markets such as South Korea and the United States. Samsung would then re-sell these phones at a lower price, the person said, declining to be identified as the plan was not yet public. The person declined to say how big a discount the refurbished phones would be sold at, which markets the phones would be sold in or how many refurbished devices Samsung could sell. It was not clear to what extent the phones would be altered, but refurbished phones typically are fitted with parts such as a new casing or battery. Refurbished phones could help vendors such as Samsung boost their presence in emerging markets such as India, where high-end devices costing $800 or so are beyond most buyers. Samsung's refurbishment program, details of which the person said could be finalized as early as 2017, could help the firm generate revenue from dated high-end smartphones returned by users upgrading to newer versions.

84 comments

  1. Really? by Anonymous Coward · · Score: 1

    How does the cell phone industry not already do this? Every other industry already does this except the sex toy industry.

    1. Re:Really? by dohzer · · Score: 2

      Yeah!
      I mean, there definitely isn't an industry for used underwear or anything.

    2. Re:Really? by JaredOfEuropa · · Score: 2

      We have cell phone shops that already did this for ages. They have trade-in deals on new phones, and sell the old phones on as "refurbished", wiped, tested, and with some form of warranty. Perhaps the manufacturers thought they could not compete well enough with this setup, or they did not want to tarnish their reputation as a premium brand. Apple might be sensitive to that, though presumably they are also gearing up for the refurb market with their yearly upgrade program. Maybe they will sell refurbed phones in bulk to retailers...

      --
      If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
    3. Re:Really? by Anonymous Coward · · Score: 0

      Is Samsung planning on putting the latest version of Android on these phones? Or is just a ploy to sell returned/unwanted inventory that "shipped" and came back?

    4. Re:Really? by Teun · · Score: 3, Interesting

      Spot on, this could/should mean they'll offer OS updates for a couple of years more.

      --
      "The likes of Facebook and WhatsApp are free to those whose privacy is of zero value."
    5. Re:Really? by Anonymous Coward · · Score: 0

      Good luck with that.

      "Refurbish" doesn't mean that they are going to have a team of developers port and QA a new version of software for old hardware. Too much greed for that.

    6. Re:Really? by jezwel · · Score: 1

      Every other industry already does this except the sex toy industry.

      Have you looked at what Amazon sells?

    7. Re:Really? by Anonymous Coward · · Score: 0

      Obviously you've never had the pleasure of using a Japanese vending machine.

    8. Re:Really? by Lumpy · · Score: 1

      They do. you just dont buy them direct from samsung. you can always buy refurbs from carriers. And any warranty return for a new phone is always replaced with a used refurb.

      My favorite part of buying a $600 phone is getting a used one that is all scratched up

      --
      Do not look at laser with remaining good eye.
    9. Re:Really? by Anonymous Coward · · Score: 0

      Just buy an iPhone and get it over with.

    10. Re:Really? by JustAnotherOldGuy · · Score: 2

      Yep, reselling phones is super common in SE Asia. Tons and tons of little stores and kiosks everywhere selling refurbished phones alongside the new ones. I've bought several there and never had a problem. Practically every single street in Cambodia, Laos, and Vietnam has these resellers, and of course they also sell the SIMs and SD cards as well.

      --
      Just cruising through this digital world at 33 1/3 rpm...
    11. Re:Really? by Anonymous Coward · · Score: 0

      Japan.

      From vending machines.

      I kid you not.

    12. Re:Really? by Rob+Y. · · Score: 2

      This would be a good thing - if Samsung were going to commit to security updates on their official refurbs for a reasonable lifetime based on the purchase of the refurb as a 'new' device for its purchaser. While a year old Samsung flagship might compare favorably with a new 'flagship killer' from OnePlus or ZTE or Asus, the new mid-ranger would at least offer a reasonable chance of keeping up with vital updates.

      --
      Posted from my Android phone. Oh, I can change this? There, that's better...
    13. Re:Really? by luis_a_espinal · · Score: 1

      They do. you just dont buy them direct from samsung. you can always buy refurbs from carriers. And any warranty return for a new phone is always replaced with a used refurb.

      My favorite part of buying a $600 phone is getting a used one that is all scratched up

      Spot on. People miss such such an obvious thing, I have to wonder about their reading comprehension skills.

    14. Re:Really? by Teun · · Score: 1

      As we've read today they, compared to Android, fail too soon.

      --
      "The likes of Facebook and WhatsApp are free to those whose privacy is of zero value."
  2. Obviously. . . by Salgak1 · · Score: 3, Insightful

    . . . the success of this program will depend on the models sold, and the price. I already see refurbed Samsung S3's, S4's, and S5's for a reasonable price. If they stay competitive with the market, and I'm thinking Refurbed S6's at a ~$350. price point, this could be successful. But they're going to have to leverage some added value: say, a decent warranty and perhaps the latest build of Android to differentiate themselves from the existing refurbished markets. . .

    1. Re:Obviously. . . by kav2k · · Score: 2

      You may want to skip S6, it was quite a misstep by Samsung (no waterproofing, no SD card, no removable battery compared to S5). They have gone back on some of that in the next generation.

    2. Re:Obviously. . . by Salgak1 · · Score: 4, Interesting

      Duly noted. We're still using S3s, which we bought refurbished for 89.95. . . . Still see little point in paying the Bleeding Edge Tax. . .

    3. Re:Obviously. . . by thegarbz · · Score: 1

      If you're security conscious then it's not a "bleeding edge tax" as much as an "security updates tax".

      Though admittedly the number of wild exploits of Android bugs have been insignificant if not non-existent.

    4. Re: Obviously. . . by Anonymous Coward · · Score: 0

      >Samsung Plans To Sell Refurbished
      >High-End Smartphones In 2017

      Apple did so from 2007 throught the channel

  3. Not just asia by m76 · · Score: 4, Insightful

    They should sell refurbished products for cheaper elsewhere too. It's not like less wealthy people only exist in asia.
    "where high-end devices costing $800 or so are beyond most buyers"
    You could say this about most of eastern europe, including the states in the EU. The average salary in my country is around 7000 USD / year so not many people can afford even 400 phones.

    1. Re:Not just asia by Opportunist · · Score: 1

      7000 a year? No wonder everyone and their dog is pushing towards the west...

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    2. Re:Not just asia by Anonymous Coward · · Score: 0

      No no. Capitalism is terrible. Socialism is the best. Islam is the best. Just because it has never worked just means the "real" version hasn't been implemented.

      The only reason they want to move west is because of the war... it has nothing to do with the better everything.

    3. Re:Not just asia by Lumpy · · Score: 1

      $1.00 for a really good lunch compared to our $10.00? yeah their cost of living is a LOT lower.

      you dont die if you dont have a $800 smartphone.

      --
      Do not look at laser with remaining good eye.
    4. Re:Not just asia by JustAnotherOldGuy · · Score: 2

      $1.00 for a really good lunch compared to our $10.00? yeah their cost of living is a LOT lower.

      Bingo. I can take my whole extended family (about 8 of us) out for a very nice 5-course dinner for about $50 or so. A tuk-tuk to take us back home across the city is ~$5. Rent for a 2-bedroom apartment in the heart of the city is about $300 a month. Phone and internet service costs about $30 a month.

      --
      Just cruising through this digital world at 33 1/3 rpm...
    5. Re:Not just asia by Anonymous Coward · · Score: 0

      They should sell refurbished products for cheaper elsewhere too. It's not like less wealthy people only exist in asia.

      True. And if everyone continues shipping jobs over there, then we'll all only be able to afford the refurbished phones.

    6. Re:Not just asia by swb · · Score: 1

      How much is to have nice girl love you long time? Fucky sucky?

    7. Re:Not just asia by JustAnotherOldGuy · · Score: 1

      How much is to have nice girl love you long time? Fucky sucky?

      I don't know what they would charge a toad like you. Probably a lot.

      On the other hand we could always ask your mom and get a price quote direct from the horse's mouth, so to speak.

      --
      Just cruising through this digital world at 33 1/3 rpm...
    8. Re:Not just asia by swb · · Score: 1

      She say you too beaucoup.

    9. Re:Not just asia by m76 · · Score: 1

      That's utter bullshit. A good lunch starts at around $5 and then you didn't buy any drinks and only a main course.

    10. Re:Not just asia by m76 · · Score: 1

      No no. Capitalism is terrible. Socialism is the best. Islam is the best. Just because it has never worked just means the "real" version hasn't been implemented.

      The only reason they want to move west is because of the war... it has nothing to do with the better everything.

      You know that there is capitalism everywhere in europe, right? There wasn't real socialism long before the iron curtain has fallen. We had capitalism since around the sixties. The fall of the iron curtain was nothing more than a formality for us. We've been going shopping to the west long before that.

    11. Re: Not just asia by m76 · · Score: 1

      I have a high end phone dipshit. Just because I can afford it, I can't look out for other interests apart from mine.

    12. Re: Not just asia by m76 · · Score: 1

      And of course I mean I can look out for other interests.

    13. Re:Not just asia by Opportunist · · Score: 1

      Dude, the 1990s called and want to talk about you updating your knowledge. Every country in Europe has been doing the capitalism dance for at least 25 years now.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    14. Re:Not just asia by Opportunist · · Score: 1

      Wow! Where do I move to? Considering that it doesn't matter where I work, I could earn my local salary, live on like 500 a month and rack up the dough for early retirement!

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    15. Re:Not just asia by JustAnotherOldGuy · · Score: 1

      Wow! Where do I move to? Considering that it doesn't matter where I work, I could earn my local salary, live on like 500 a month and rack up the dough for early retirement!

      Exactly, that's the long term plan for my wife and I; sell our house, cars, and all our stuff and retire to Cambodia or Laos with a pile o' money.

      You can live fairly well in Cambodia, Vietnam, or Laos on $500 to $700 a month.
      With an income of $1,200 a month you can live a very good, very comfortable life.
      Above $2,000 a month you could live like a king in a gorgeous villa.

      World-class medical care is readily available in Vietnam and Thailand at a fraction of the cost of what it is in the US. A $10,000 medical procedure in the US costs about $1,000 to $2,000 in Vietnam, maybe a little more depending on what it is. Ask me how I know.

      --
      Just cruising through this digital world at 33 1/3 rpm...
    16. Re:Not just asia by Lumpy · · Score: 1

      100% free if you don't have a completely repulsive personality.

      --
      Do not look at laser with remaining good eye.
    17. Re:Not just asia by Opportunist · · Score: 1

      Now let's all be glad the US fucked up in the war there, they probably would have ruined that opportunity if they won...

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  4. Sounds ok by shione · · Score: 2

    Sounds ok if the price is right and they replace the batteries since the battery is both sealed and glued down tight inside the chassis. There is no hard case around the battery so if you try to wedge it up, it is very easy to snap it apart releasing the gel inside. They also have to disinfect the phone with UV light or something since people hold the phone close to their face coughing and spitting into the handset and taking it to the toilet with them.

    1. Re: Sounds ok by JaredOfEuropa · · Score: 1

      Are the batteries glued down these days in iPhones? The older iPhones had removable batteries, though you needed the right screwdriver for those itty bitty screws to get the case open.

      --
      If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
    2. Re: Sounds ok by Anonymous Coward · · Score: 0

      In the last few I've taken apart yes. They have a pull-tab which is meant to make it easy to remove but in my experience it tends to snap, meaning you end up prying the battery out with a spudger.

    3. Re: Sounds ok by GuB-42 · · Score: 1

      Samsung is no better than Apple nowadays. They used to have a replaceable battery, which gave them a big advantage but they lost it when the S6 came out.

      According to iFixit, the iPhone 6S has a much better reparability score than the Galaxy S7. (7/10 vs 3/10).

    4. Re: Sounds ok by Anonymous Coward · · Score: 0

      clot? thats enough killing floor for you tonight, basement dweller.

    5. Re: Sounds ok by Lumpy · · Score: 1

      Samsung and HTC glue the battery behind the LCD so you damage the screen trying to get it out, and they have the awesome effect of screen cracks when they swell at end of life.

      --
      Do not look at laser with remaining good eye.
    6. Re: Sounds ok by thegarbz · · Score: 1

      Which is really irrelevant since no one uses the terms "I" "fix" and "It" when talking about phones. It's typically a discussion of "I replace it" or "the genius at the bar gave me a new one".

      I used to fix phones for people. People didn't care. A broken screen was an excuse to get the newest model. A broken battery was rarer than rockinghorse poo.

    7. Re: Sounds ok by shione · · Score: 1

      The program starts in 2017 and it is to refurbish highend phones returned by users who signed up for a one year upgrade program. So it's fair to say these will mostly be recent phones like the S6, S7, note 5 (there was no note 6) and note 7 phones. None of these have user replaceable batteries and they are sealed and glued down inside the case. Your knowledge of Samsungs flagship phones is out of date.

    8. Re: Sounds ok by Anonymous Coward · · Score: 0

      I stand corrected! Thanks for the rundown.

  5. I can see it now. by dohzer · · Score: 1

    Refurb Employee 1: "We need to cut costs.. but how?"
    Refurb Employee 2: "Do we really need to replace the two-year-old battery in this one? Can't we just code some VW-hacks?"
    Refurb Employee 1: "I like your thinking!"

  6. Hidden bonus by Coisiche · · Score: 1

    You get a nice phone and all the personal identity information left behind by the previous owner that the refurbishment procedure missed. Bargain.

    And there will no doubt be something available in the Android Market to delve into memory and configuration looking for any snippets of information left behind.

    1. Re:Hidden bonus by Anonymous Coward · · Score: 0

      Well naturally.
      But will Apple share the output?

  7. How is this even possible!?!? by Anonymous Coward · · Score: 0

    I thought only teh iSheep bought new phones everytime a new one came out and that Samsungs were the best and that they last forevah!!!!!

  8. Blah by Anonymous Coward · · Score: 0

    Is this going to entice people, who have been holding off not buying their phones, due to the bootloader lockdowns they've been enforcing in the last couple of years with AT&T/Verizon phones?

    I would say NO....

  9. Right by ThatsNotPudding · · Score: 1

    but refurbished phones typically are fitted with parts such as a new casing or battery.

    I'm sure a corporation so huge that its gravitational field affects governmental policy will do right by this lower income demographic.
    Back in the real world, it is very expensive to be poor.

  10. Gee, I wonder.... by jenningsthecat · · Score: 3, Interesting

    Will Samsung 'update' the software in the refurbished phones so they can push ads to them, the way they did with their 'smart' TV's?

    --
    'The Economy' is a giant Ponzi scheme whose most pitiable suckers are the youngest among us and the yet-unborn.
  11. The Future Society by Anonymous Coward · · Score: 2, Insightful

    First order citizens are the ones with the new smartphones, second order citizens are the ones with once refurbished phones, third order citizens are the ones with twice refurbished and so on. Smartphone voting and banking is only possible with the latest security updates installed, leaving the second order citizens and beyond increasingly without the rights and basic services. All Hail to the Glorious Nation of Smartphonya!

    1. Re:The Future Society by Opportunist · · Score: 3, Funny

      Finally a trickle-down theory that actually works, yet you're complaining again. Can't satisfy you commies, can we?

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    2. Re:The Future Society by thegarbz · · Score: 1

      Smartphone voting and banking is only possible with the latest security updates installed

      That depends on the security risks. So far much of the security problems fixed by updates have yet to be exploited in the wild, while people with the latest and greatest secure devices happily install a computer game which needs permissions to access every corner of your phone without question.

    3. Re:The Future Society by DNS-and-BIND · · Score: 1

      So, you just invented this, right? In a story that tells us that recycling phones is a great thing instead of just throwing them into a toxic landfill. No, you can't think of anything nice, you just create a ridiculous strawman argument and then proceed to tear it apart. Fucking seriously, +4 Insighful? A strawman?

      --
      Shutting down free speech with violence isn't fighting fascism. It IS fascism!
    4. Re:The Future Society by Anonymous Coward · · Score: 0

      I was aiming for Funny with my almost Sci-Fi. Public services have been pushed increasingly towards smartphone users where I'm living, causing a public outcry. Also cash is similarly under threat with electronic banking, payment and identification being already the norm, also in using government services. I'm sure the derivation would stroke nearer at home in the US as well if you had national chipped, biometric ID cards, combined with social security and public healthcare insurance access, with keys also available for your SIM cards for additional convenience as well. All while the bank provided security codes are used in most ID related transactions for a monthly fee.

    5. Re:The Future Society by immortalcrab · · Score: 0

      We communist don't want trickle down, we want to turn the water tank upside down.

  12. Phones for the poor by Anonymous Coward · · Score: 0

    second hand cast offs for the poor, only in America.

    VOTE TRUMP 2016
    OR ELSE!

    1. Re:Phones for the poor by Anonymous Coward · · Score: 0

      I'd prefer not have such a moron running such a large country. Supporting trump is simply an admission that you're a racist, white, low income idiot.

  13. Why is Samsung refurbishing iPhones? by Anonymous Coward · · Score: 0

    Guess they finally gave up on that second-rate, failed Android system.

  14. You know I could get in to something like this by Sycraft-fu · · Score: 3, Interesting

    But only if they'd start releasing OS updates for their older hardware. Given that Samsung drops support after just 18 months, I don't think I'd want to buy a refurb since it is going to get updates for, at most 6 more months. If I am going to get something with no updates, I'd want it for actual used market prices, which is to say really cheap.

    1. Re:You know I could get in to something like this by thegarbz · · Score: 1

      Why? What are you hoping to get out of the upgrades? New features are so incredibly mediocre that it's barely worth the effort. Security improvements are all but irrelevant in a world where people are so happy to install malware masquerading as legitimate software that nearly all security exploits never see working exploits in the wild.

    2. Re:You know I could get in to something like this by Sycraft-fu · · Score: 1

      Well personally I've been quite happy with a number of the new features. Also security isn't irrelevant to me, given that I do work to keep my device secure by updating it, by running security software, and be screening what I install and only installing things I need.

      I am talking about MY interest in something and ya, having new versions of software is something that I consider. If I'm getting a new device that is something I want.

  15. No Warranty by kmahan · · Score: 3, Insightful

    It'll be another opportunity for Samsung to ignore the warranty they supposedly provide on refurbished products.

    --
    Invalid Checksum. Retrying.
  16. Samsung is Not Trustworthy by ohnocitizen · · Score: 1

    Between how they treat their workers (https://www.reddit.com/r/worldnews/comments/4yqjvt/samsung_witholding_what_chemicals_are_the_cause/) and their customers (look up the issue with their camera glass on the S7 and how they have responded), Samsung isn't worth trusting. I have an S3 now, no way in hell I'm buying another one of their phones.

  17. Another reason to design in a replaceable battery by Hydrian · · Score: 1

    To me, any non-replaceable battery, gives a device very finite life. For cell phones, it is usually about 18-24 months. If you think I'm going to buy a refurbished cell phone that that doesn't replaceable battery, you are bat shit crazy.

    --
    No good deed goes unpunished.
  18. Galaxy Note 3 Was Samsung's Best Phone by BrendaEM · · Score: 1

    Most of the rest that came later were worse: sticking pens, no Micro SD, and now: soft screens.

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    https://www.youtube.com/c/BrendaEM
  19. FBI SLASHDOT IS A TOTAL FBI LEAK NOW. by Anonymous Coward · · Score: 0

    Samsung are in cooperation with the US government. Seen Barack Obama's new phone he is so proud of in the news lately? Samsung.

    Samsung also have surveillance in the firmwares of some of their other devices eg. TV's.

    So selling spyware re-equipped devices might sound like a bargain, but only ON FBI SLASHDOT.

  20. Phone Insurance Plan by thundercattt · · Score: 1

    Thays what you get anyway if you pay your carriers 6-10 bux a month for handset insurance. You get a refurbished model.

  21. Samsung is overpriced garbage. by Anonymous Coward · · Score: 0

    Why would I buy a shitty Samsung phone, that has extremely delayed updates (if ever) and is filled with samsung crapware for $800, when I can buy a phone from China that has stock android, takes OTA updates of stock Android, and has better specs than Samsung's flagships for less than 1/4 the price?