"Increase Resale Value"... Will Samsung Renewed Phones Launch Domestic Business Next Year?

Overseas Pilot Operation... Suggests Introduction in Korea
Apple Guarantees Used Product Performance for One Year

Samsung Electronics plans to start its domestic re-newed phone business as early as next year. This move aims to increase the residual value rate of used smartphones, which is considered a measure of brand value, and to contribute to reducing household communication expenses.

On the 30th, Samsung Electronics stated, "We plan to launch the re-newed phone business domestically, which was previously conducted only in the United States, the United Kingdom, and France," adding, "Although the specific schedule has not been set, we expect to start as early as next year."

"Increase Resale Value"... Will Samsung Renewed Phones Launch Domestic Business Next Year?

Samsung Electronics announced preliminary consolidated results for the third quarter with sales of 67 trillion KRW and an operating profit of 2.4 trillion KRW, exceeding expectations by more than 2 trillion KRW. The photo was taken on the 11th at Samsung Electronics Seocho Building in Seoul. Photo by Jinhyung Kang aymsdream@

Earlier, Kang Bong-gu, Vice Chairman of Samsung Electronics, hinted at the launch of the re-newed phone business in Korea during the comprehensive audit of the Ministry of Science and ICT held by the National Assembly's Science, Technology, Information and Broadcasting Committee on the 27th. Responding to lawmakers' remarks that Samsung Electronics was conducting the re-newed phone business only in three overseas countries, he said, "Based on the pilot operation results, we plan to release re-newed phones in Korea as well." This indicates that after completing the overseas pilot operations, Samsung intends to expand the business in earnest.

Samsung Electronics' plan is closely related to the recent phenomenon where its Galaxy used products are traded at about half the price of used iPhones. On the 16th, Asia Economy reported a comparative analysis of the residual value rates of Samsung and Apple smartphones based on used smartphone listings on 'Cetizen,' a specialized used mobile device trading site.

At that time, the used transaction price of Apple's top model iPhone 14 Pro Max (128GB), released last year, was set at 1,314,000 KRW. Compared to the launch price (1.75 million KRW), the residual value was 75.1%, the highest among all Samsung and Apple smartphones. In contrast, Samsung Electronics' top model Galaxy S22 Ultra (256GB), released the same year, was traded at 668,000 KRW, about half the price of the iPhone 14 Pro Max. Its residual value was 46%, less than half of the launch price.

Although Samsung competes fiercely with Apple in almost every area, including price, performance, market share, and brand awareness, it lags far behind Apple in terms of used price retention, which is considered a 'luxury brand condition.'

The re-newed phone business is effective in increasing used value. The phones are refurbished with genuine Samsung parts, including new batteries, and sold with quality comparable to new products. Samsung engineers conduct strict quality inspections on 132 items, and warranty services are also provided, reducing risks such as malfunctions or damages that can occur in peer-to-peer transactions. Apple also strives to defend used value by offering a 'certified refurbished' program that guarantees product performance for one year and directly sets prices.

Additionally, by selling at prices much lower than new products, this business can contribute to reducing household communication expenses, which is expected to enhance corporate value in the long term.

Samsung Electronics has not yet decided whether to operate the business directly or through third-party partners. However, even if third-party companies are involved, Samsung's inspection process must be included to apply the Samsung certification logo, ensuring that the product quality will be as high as those sold in the three countries.