Patently Apple posted a report in mid-February titled "Samsung Backtracks and is Reportedly Planning to Sell Refurbished Note 7 Smartphones in Q3." After the Note 7 disaster Samsung debated back and forth furiously in November as to whether they should refurbish their recalled units or scrap them. Early on the latter move was agreed upon, but another round of meetings weeks later had them reverse course. Today Reuters catches up that news.
Reuters reports that "Analysis from Samsung and independent researchers found no other problems in the Note 7 devices except the batteries, raising speculation that Samsung will recoup some of its losses by selling refurbished Note 7s. The company estimated a $5.5 billion profit hit over three quarters from the Note 7's troubles.
Samsung, which had sold 3.06 million Note 7s to consumers before taking the phones off the market, had not previously said what it plans to do with the recovered phones. A person familiar with the matter told Reuters in January that it was considering the possibility of selling refurbished versions of the device or reusing some parts from the recalled phones.
"Regarding the Galaxy Note 7 devices as refurbished phones or rental phones, applicability is dependent upon consultations with regulatory authorities and carriers as well as due consideration of local demand," Samsung said in a statement, adding the firm will pick the markets and release dates for refurbished Note 7s accordingly." The Reuters report didn't clarify as to when the refurbished Note 7's would be coming to market.
The decision to sell refurbished Note 7 devices could hurt Note 8 product sales later this year if sold in their top markets. However, our original report noted that Samsung would consider selling refurbished Note 7's in emerging markets such as Africa which could expand market share but not hurt their established markets. Samsung fans in the U.S. and Europe are likely to be out of luck, as Samsung wants you to buy the Note 8 at full price.
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