In response to the ongoing dominance of Apple in the premium smartphone market, Samsung is significantly expanding its trade-in initiatives to close the resale value gap. Canalys (now part of Omdia) reports that the Apple iPhone 15 retains 50% of its value after one year, compared to just 40% for Samsung’s Galaxy S24. This difference impacts Samsung’s competitiveness in the second-hand smartphone market, a growing channel for high-end devices. However according to Canalys expanding trade-in incentives doesn’t eliminate the resale value gap. Instead, these programs aim to encourage users to trade in their devices more frequently and in greater numbers. This strategy supports two goals: boosting premium new smartphone sales and increasing the supply of second-hand devices. The additional incentives help narrow the value gap, allowing Samsung users to receive trade-in returns comparable to those of Apple users.
Higher trade-in volumes will increase the supply of Samsung devices in the second-hand market, though the impact on competitiveness is less clear-cut. On one hand, greater supply can facilitate broader resale opportunities; on the other, it could drive down second-hand prices if supply outpaces demand. The biggest advantage for Samsung may lie in controlling more of the resale channel. However, the long-term strategic value is likely in expanding its installed base. With a larger user base, Samsung can pursue higher services revenue—similar to how Apple monetizes its ecosystem through channels like Apple Ads and its preferential deal with Google Search.
Understanding Samsung’s Overtrade incentives
One of Samsung’s longstanding tactics has been its “Overtrade” offers. These provide additional trade-in value during promotional periods, especially when launching new models. For example, when upgrading to the Galaxy S25, customers may receive € 100 over the market value of their old phone. These incentives reduce the upfront cost of new phones, encourage upgrades and promote a more circular device lifecycle. Since 2022, Samsung’s average selling price (ASP) has increased from € 356 to € 483, with devices priced over € 560 growing from 18% to 32% of its sales mix.
Galaxy Club offers guaranteed buyback
To further increase appeal in mature markets, Samsung has introduced Galaxy Club in the US and UK. The service guarantees 50% buyback within 12 to 15 months, bundled with 0% financing, SamsungCare+ and loyalty rewards. The strategy shortens the typical three- to four-year upgrade cycle and aims to counter Apple’s strong brand lock-in. While Apple has moved away from its own hardware subscription, Samsung sees Galaxy Club as a potential revenue driver for its broader services ecosystem.
Trade-ins with or without a new purchase
The recently launched Galaxy trade-in program in South Korea and France allows users to trade in their old Galaxy devices without the requirement to purchase a new one. By improving traceability and reducing fraudulent subsidy claims, Samsung strengthens its control over the full lifecycle of its devices. It also allows the brand to maintain higher residual values across its product lineup, which is crucial for long-term positioning in the second-hand space.
How the programs fit together
Samsung’s trade-in architecture—Overtrade, Galaxy Club and Galaxy Trade-In—works in harmony to improve device affordability, boost premium device sales and build user retention. Each initiative serves a slightly different purpose and targets specific user profiles. While Overtrade is widely used via retail and open channels, Galaxy Club focuses on premium buyers via Samsung’s direct-to-consumer channels. Galaxy Trade-In ensures the effectiveness and integrity of all trade-in mechanisms by preventing misuse.
The second-hand paradox
A core dilemma for smartphone vendors is reconciling the push for new device sales with the benefits of a thriving secondary market. While new shipments are needed to meet financial goals, second-hand phones bring in new users and support sustainability—but usually without direct revenue. Samsung’s trade-in strategies attempt to resolve this tension. By enhancing trade-in values, it supports both immediate sales and a strong second-hand ecosystem. However, long-term sustainability requires more than just hardware churn.
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