Samsung has found a way to cut Galaxy prices without cutting them

Rising memory chip prices are making your smartphones more expensive. Companies like Samsung have little wiggle room when it comes to choosing between either raising prices or sacrificing margins. In addition to striking a balance between both considerations, the company is also trying to offer ramp up sales of refurbished models.

Samsung began selling its own refurbished Galaxy phones on Amazon.com recently, not too long after raising prices on the latest Galaxy S26 and Galaxy A phones in the US. Put side by side, the two moves add up to a Galaxy price cut that never touches a price tag.

There's a lot of variety to choose from for customers who are fine with buying a certified refurbished device. Seven models from the Galaxy S24 and Galaxy S25 series are on offer, with prices ranging from $489 for a Galaxy S24 FE to $1,029 for a Galaxy S25 Ultra with 512GB of onboard storage.

Refurbished variants of the Galaxy S26 are also on offer. Despite the price hikes for a new Galaxy S26 phone, there has been no increase in price for the refurbished model. The difference between a certified refurbished Galaxy S26 and a brand new one is now around $240. The gap on the Galaxy S26 Ultra has gone from $200 to $300.

So even if the price hikes on brand new models makes buyers think twice, Samsung is providing them with a cheaper alternative, one that is rigorously quality tested before it's shipped to ensure that customers get an almost similar experience as they would with a phone fresh out of the box.

Revamping the certified refurbished program is Samsung's way of ensuring that it has something to offer customers who can't stomach the price increases. The refurbished program used to be where Galaxy flagships went to die.

Latest models wouldn't be added to the program for at least 12 months. The Galaxy S25 landed in about nine months after launch. The Galaxy S26 series has made it to the program in just six months.

Each refurbished model passes a large number of quality checks. Samsung also gives each phone a new battery and backs it up with a one-year warranty. Customers get the same level of software support, so a refurbished Galaxy S26 gets the same number of Android OS upgrades as a fresh one.

This allows Samsung to squeeze more dollars out of the devices it has already produced. Refurbished phones already have memory chips that were bought and paid for when the phone was first sold.

This matters significantly for Samsung's business, which is on track for its first ever annual loss and has cut its device shipment projections for the year. More compelling refurbished devices should help move more devices while building fewer new ones that require costly memory chips.

It remains to be seen how this strategy works in the long term. There's an inherent supply limitation, since refurbished devices come from trade-ins, which come from new phone sales. As new phone sales decline, so will trade-ins, and thus the supply available for refurbishment.

Refurbished phones are a great way to get some of Samsung's latest flagships without bearing the brunt of the price hikes the company has been forced to make. Beyond the satisfaction of opening a brand new device, there's really no difference in the user experience that both options provide.

This also means that you can get your preferred device sooner. You don't need to wait for discounts or holiday promotions. Ultimately, it's a win-win situation for both you and Samsung.