According to Custom Market Insights, the secondary smartphone market reached a value of $10.44 billion in 2022 and is expected to exceed $22 billion by 2030. As new smartphones become more expensive, many consumers recognize the value of lightly used and refurbished devices.
In Q1 2024, Samsung sold 60 million units. This success in the primary market directly impacts the secondary market, where Samsung is a leading brand in Android devices. Samsung’s Galaxy S series dominates the high-end segment, while the A series is popular in the mid-tier market. Samsung is known for its performance, durability, and high manufacturing standards, making it a solid choice for wholesale distributors.
Cost Savings and Profit Margins
Between 2022 and 2023, the Average Selling Price (ASP) for a new Samsung S24 Ultra increased by 9.2%, with prices ranging from $1,199 to $1,300. In contrast, bulk Samsung wholesale prices for pre-owned S24s ranged from $549 to $699 per unit, depending on the variant and wholesale outlet. These lower acquisition costs, approximately half the price of new devices, make it possible for distributors to offer competitive pricing.
Distributors can attract an extensive customer base by selling pre-owned Samsung devices at competitive prices while maintaining substantial profit margins, driving demand for used Samsung phones.
Availability of Refurbished Devices
Refurbished devices occupy an important place in the pre-owned market. While used, these devices have been repaired to a high standard, making them functionally equivalent to new devices. Many corporate buying programs specifically target refurbished devices for their high quality and reasonable cost.
Understanding the Samsung Lineup
Samsung offers different types of phones, making them ideal for meeting market demand across various segments. The lineup includes high-end, mid-range, and budget categories, catering to different consumer needs. The Galaxy S and Galaxy Note series stand out at the high end and are considered premium devices based on their capabilities: a fast processor, ample storage, and excellent display, making them highly desirable in developed markets. This translates into reliable wholesale demand for the Galaxy S series.
The Galaxy Note series is distinguished by larger screen sizes, cutting-edge processors, and the integration of the S Pen, Samsung’s proprietary stylus. The Note series has a following among business users, college students, and gamers for its productivity benefits.
The Galaxy A series covers both mid-range and budget segments, accounting for 60% of Samsung sales. Higher-digit models, such as the A54 and A55, are solid mid-range performers capable of gaming, video streaming, and general productivity. These models are popular for their balance of performance and price, making them attractive to price-conscious consumers and businesses.
Lower-digit A models, previously known as the J series, are competitively priced, at under $200. These entry-level devices are popular in emerging markets for their value, although they offer limited profit margins for wholesalers.
As a Samsung wholesaler, you can offer a wide range of products or focus on specific SKUs suitable for your customer base. Either inventory strategy can be successful—the key is to understand your customers’ needs.
Quality Assurance and Warranty Programs
Samsung devices are known for their high manufacturing standards, performance, and reliability.
If you have in-house technicians skilled in phone repair and upgrades, you may know that Samsung cell phone parts are available wholesale. Simple repairs, such as replacing broken screens, can be highly profitable, allowing you to resell the improved phones at higher prices.
Thanks to Samsung’s quality standards, you can be confident that purchasing high-grade pre-owned Samsung phones from a reputable wholesaler will provide devices with excellent cosmetics and performance.
Conclusion
Samsung’s top-ranking global sales in Q1 2024, diverse product lines and high-manufacturing quality standards make it a standout brand. Whether targeting the high end of the market with the S or Note series or the mid-tier and budget segments with the A series, Samsung offers devices for every customer.
Partnering with a reputable wholesale supplier of Samsung phones will help build a long-standing business relationship founded on trust and quality.
