Used Phones Become Hot Property Amid Chipflation as Samsung Launches Certified Used Phones in India [IT Item of the Day]

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[Financial News] Samsung Electronics is expanding its certified used smartphone business to the Indian market.
As chipflation, a mix of semiconductors and inflation, has pushed up the price of new smartphones, more consumers are turning to used devices that offer better value for money. The move is seen as an effort to broaden Samsung Electronics’ presence in the used phone market and offset weak demand.
According to industry sources on the 13th, Samsung Electronics has launched its certified used smartphone business in India, following South Korea, the United States, France, the United Kingdom and Germany. India has a population of about 1.4 billion, but smartphone penetration remains low, making it one of the countries with the greatest growth potential.
Samsung Electronics’ certified used smartphone program buys back defective, used and display units, refurbishes them, and sells them directly. The appeal is that customers can buy them at a lower price than new models while still receiving a one-year manufacturer warranty, just like a new product.
As the used phone market grows, sales of new smartphones could decline. But in a situation where demand for smartphones is steadily weakening as replacement cycles lengthen, manufacturers can create new revenue streams and enhance brand value by selling their own used phones directly.
Apple Inc. also operates a certified refurbished program, in which it guarantees the performance of used products for one year and sets the selling price itself.
Above all, the used phone market is growing noticeably as manufacturers continue to raise smartphone prices in response to rising component costs.
According to International Data Corporation (IDC), global shipments of used smartphones rose 3.2% last year from a year earlier. That outpaced the 1% growth in shipments of new smartphones over the same period. Used smartphone shipments are expected to increase 5.8% this year.
mkchang@fnnews.com Jang Min-kwon Reporter