Samsung Electronics and Apple are beefing up trade-in and purchase benefits to boost premium phone sales. Many consumers hesitate to buy because of high prices and repair expenses when devices are damaged. Word is that this is winning support from younger customers, including those in their 20s and 30s who prefer the latest devices.
Samsung Electronics has been running the "New Galaxy AI Subscription Club" for newly released models starting this year. For unlocked models purchased on Samsung.com or Galaxy Campus, subscribers pay a monthly fee and receive 50% of the purchase price (base price) in cash when returning the device after one year, or 40% after two years. Customers can choose a one-year or two-year plan.
All returns are accepted except for devices with exterior damage such as bent frame, lift, cracked glass, cracked back, or cracked camera, devices that cannot power on, and devices with an account not removed. The subscription fee and enrollment window vary by product. The Galaxy Z Fold7 costs 8,900 won per month, the Z Flip7 is 7,900 won per month, and the Galaxy S25 FE is 5,900 won per month. A one-year Samsung Care Plus smartphone damage plan, which provides damage compensation and on-site repair service, is also included.
For example, if you buy a Galaxy Z Fold7 256 gigabytes (GB) on Samsung.com for 2,379,300 won on the 30th of this month and enroll in the one-year New Galaxy AI Subscription Club, you can receive 1,189,650 won in cash when you return the device between Oct. 1 and Nov. 30 next year. You can enroll with your existing mobile plan regardless of carrier plans, and enrollment remains valid even if you change your plan or carrier. Early termination is possible, and you can enroll only once per device.
Consumer response is positive. The "New Galaxy AI Subscription Club" played a role in the Samsung Galaxy S25 series hitting 1 million units sold 21 days after launch early this year. One out of five customers who preordered the Galaxy S25 series signed up for the service, and 60% of subscribers were in their 20s and 30s. A Samsung Electronics official said, "We launched the program targeting younger users who want to change phones every year, and the response has been good."
In addition, Samsung Electronics has been operating the "Galaxy certified used phone" program since Mar. 31 this year. Under the program, the company sells smartphones that were returned within seven days of online purchase due to simple change of mind or opening, after an in-house quality inspection rates them as top grade. However, quantities are not large. The current price of a certified used Galaxy Z Fold6 256GB unlocked model is 1,672,000 won. That is about 8% cheaper than a new device of the same model (1,819,400 won). At times, certified used phones are released that are more than 600,000 won cheaper than new devices.
Apple has been offering 24-month interest-free installments at its offline stores since Mar. 19 this year. The aim is to let consumers buy high-priced iPhones with less burden. The interest-free plan can be used together with Apple's existing trade-in program "Trade In." Under Trade In, consumers receive a trade-in estimate for their current device and get points (credit) they can use when purchasing a new device.
Apple also runs an insurance subscription service, "AppleCare Plus," for smartphones purchased in store. AppleCare Plus can be purchased within 60 days of the product purchase date and extends the warranty from one year to two years, reducing repair expense burdens. AppleCare Plus expenses vary by model. For the iPhone 16e, it is 179,000 won; for the iPhone 16 and 17, 229,000 won; for the iPhone 16 Plus, 259,000 won. The iPhone 16 Pro and Pro Max cost 329,000 won.
Market research firm IDC said, "Manufacturers are actively offering a variety of promotions so customers won't hesitate to replace their smartphones."