As smartphone handset prices rise due to a memory semiconductor crunch, the refurbished (refurb phone) market is expanding. Samsung Electronics recently launched a certified pre-owned phone business in India. Certified pre-owned phones, known as refurb phones, are products that were returned after simple unboxing or were defective and repaired by the manufacturer to be sold at lower prices.
According to the industry on the 12th, Samsung Electronics began offering its Certified Re-Newed (CRN) service in India starting on the 11th (local time). Samsung Electronics operates an official certified pre-owned phone program in Korea, the United States, the United Kingdom, Germany and France. Korea introduced the official certified pre-owned phone program in March last year.
Samsung Electronics said all certified pre-owned devices undergo thorough inspection, cleaning and software verification at authorized facilities. If needed, parts are replaced with genuine Samsung parts. In addition, all devices have previous user data erased before sale and are updated to the latest software. Samsung packages certified pre-owned phones in a new box with a USB cable and accessories, and provides the same one-year warranty as new Galaxy smartphones.
With smartphone prices rising amid a global memory shortage, consumers are turning to refurb phones to cut purchase expense. Counterpoint Research said, "As memory supply shortages persist, combined with rising energy prices, higher logistics costs and economic uncertainty from tensions in the Middle East, buying sentiment for new products is weakening and demand for refurbished products is increasing." Omdia said, "Rising smartphone prices are spurring growth in the used smartphone and refurbished markets in emerging economies where price burdens are high."
The price gap between new smartphones and refurbished products is generally between $50 and $200. Refurb phones are sold at about a 30%–50% discount compared with new models. They are a good choice for consumers who want high-spec smartphones but find the list price burdensome.
From manufacturers' perspective, as barriers to new purchases rise for consumers, they can retain users by expanding the refurbished market. A smartphone industry official said, "Samsung has focused on selling entry-level models in India, but certified pre-owned phones can broaden consumers' experience with premium products."
Counterpoint Research said, "The memory shortage could persist until the end of 2027," adding, "Smartphone makers are expected to prioritize value over volume in their updates, discontinue low-revenue models, and use refurbished products to retain budget-model users."
Price competitiveness, however, remains a concern. Certified pre-owned phones offer a trustworthy channel for consumers, but when new models are heavily discounted, the price difference narrows. An industry official said, "In India, Samsung's refurb phone prices are similar to the prices of new Galaxy models sold on Amazon and Flipkart (India's largest online shopping mall)."