Samsung’s Galaxy S23 is part of the new Galaxy compensation scheme. Photographer: Angel … [+]
This story was updated on January 14 with new details on the compensation scheme.
After 12 months of sky-high trade-in prices for older phones, Samsung is doubling its trade-in prices with a new cashback scheme for Galaxy devices.
The Korean company announced today that it will launch a new trade-in program that does not require the purchase of a new handset. The “Galaxy Easy Compensation” scheme will pay Korean Galaxy phone owners money for their old device, with values fluctuating depending on condition. Most importantly, there is no need to buy a new phone.
Samsung says it will classify used phones into three grades; excellent, good and recycled, with payments adjusted depending on the category of the phone used. The company hasn’t released the prices for the phones yet, but the list of accepted devices may give us some insight.
- Galaxy S23
- Galaxy S22
- Galaxy S21
- Galaxy S20
- Galaxy Z Fold5
- Galaxy Fold4
- Galaxy Fold3
- Galaxy Z Flip5
- Galaxy Flip4
- Galaxy Flip3
These are all newer phones that have been released in the last five years and, most importantly, they are all still within their update window. They all receive a combination of security patches and operating system updates. The scheme, which starts on January 14, is only available in Korea at the moment, with expansion to other countries planned for the future.
In recent sales, Samsung has marked down some of these phones a lot when trading in for a new device. For example, the company offered $800 for the Galaxy S22 Ultra when buying the Z Fold 6. It will be interesting to see what the Korean company will pay for these devices when a new phone is not purchased.
It appears that Samsung is planning to resell these devices, with the announcement clearly saying that the company plans to “buy used smartphones that customers don’t use and use them for resale in the future.” Apparently, this means that recovered devices will be refurbished.
Samsung wants to discredit Android
I don’t know how much a five-year-old Galaxy S20 is worth, but I can see newer phones still fetching a good price. Especially with Samsung’s new seven-year software support warranty. This also explains why Samsung extended software support last year to at least four years of updates for devices released after 2019.
Samsung is clear, it wants its Galaxy phones to be as valuable as the iPhone, no matter how old the device is. “Samsung Electronics plans to maintain the market value of Galaxy smartphones,” the press release explains. That’s a tall order for any Android phone.
With that said, the Korean company may be closer to rehabilitating the image of Android phones in the public consciousness. Recent data from Sell Cell revealed that Samsung phones are depreciating at a slower rate with each release. For example, the Galaxy S22 series lost an average of 66.7% of its value in the 12 months after launch. However, the Galaxy S23 only lost 61% in the same time frame, which is an improvement of 5.6%.
A dedicated trade portal, which officially declares how much a phone is worth from Samsung’s position, adds some reassurance to buyers who usually see the price of their expensive phones when new handsets are launched. But that certainty depends on what Samsung is willing to pay for said devices. We’ll have to see if Samsung keeps that high price for older phones when a new device isn’t purchased.
Update on January 14: Samsung has now confirmed that it will be expanding the new compensation scheme to France, alongside its launch in Korea. These are the pilot programs that will start today, January 14. In a new release, Samsung reiterated its plan to improve the value of older Galaxy phones.
“We are excited to launch our new year-round Galaxy Trade-in Program in an effort to enrich the value of Galaxy devices for users and contribute to a circular economy,” Head of Galaxy Value Innovation team at Samsung, Jun Kim. is explained.
Samsung hasn’t revealed when or if the scheme will come to the US. But it will be interesting to see how it plays out given the gap in trade prices between the US and Europe. US Samsung buyers benefit from extremely high valuations for older handsets, while European consumers have to make do with more modest prices. Stay tuned for an overview of Samsung’s new trade-in scheme and how the price compares to the secondary market and the Korean company’s own estimates during sales periods.
