Report: Samsung To Sell Used Smartphones

Samsung reportedly hopes to bolster earnings in its mobile device business by selling used smartphones.

The South Korean electronics giant could launch the new program as soon as next year, a source familiar with the matter told Reuters.

The system would rely on users of premium smartphones in the U.S., South Korea and other markets enrolled in programs to upgrade their devices after one year.

The used phones would be returned to the company, then refurbished and re-sold at a lower price. Its Galaxy smartphones currently fetch about half their initial price on the U.S. resale market, according to analysts.

Global smartphone growth appears to be leveling off, and although Samsung bolstered profits in its mobile businesses with an overhauled product line, the sale of used phones would help increase efficiency and maintain profit margins.

Other details, including the price of used phones and which markets they could be sold in, were not available.

Reuters added that the used devices could be attractive in developing markets such as India, as well as make Samsung more competitive with lower-cost options in China.