Samsung has launched a test program for the buyback of its smartphones from users. The company promises to pay 50% of the device’s retail price if the owner returns it within two years. So far, the program extends only to the flagship Galaxy S20 line launched in 2020, and it’s limited to North America.
Of course, Samsung wants to attract consumers. The demand for the Galaxy S20 in almost all countries was significantly lower at launch than the Galaxy S10. The difficult epidemiological situation in the world caused by coronavirus has affected demand everywhere. Because of this, many of those who can afford a brand new flagship phone from Samsung have changed their priorities and begun to think about, not buying new equipment, but their own survival, which under current conditions is more than justified.
How do I return an old smartphone?
The Galaxy S20 buyback program, despite the apparent similarities, actually has nothing to do with a trade-in. First, trade-in payments are calculated individually for each particular case; on return, Samsung promises a strictly fixed amount of 50% of the price. Second, a trade-in usually allows you to hand over devices in almost any condition, and Samsung requires that the device is in excellent condition, allowing only for natural wear and tear. Third, the buyback program, unlike a trade-in, gives you real money without having to buy a new smartphone.
Where is it cheaper to buy a smartphone?
The launch of the buyback program is an even more significant event for the market than it might seem at first glance. After all, it could completely kill the secondary market. Plus, thanks to the buyback program, it will be simpler and more profitable for users to turn in their Samsung smartphone than to sell it on their own.
It may seem that, to Samsung, this program is not very profitable, because if they don’t suffer losses, they will surely at least lose profit. However, by extending the buyback scheme to new smartphones, Samsung can attract many users who were issued a return, because customers, knowing they’ll have the opportunity to return their phone again, will almost certainly still want to buy a new smartphone from Samsung.