Innovation in On-Demand Sales

Samsung is aggressively expanding its self-repair program in the U.S. and Europe, for the first time including complex devices like foldables. This move is not just a service enhancement but a strategic response to growing "Right to Repair" regulatory pressure and a fundamental shift in consumer behavior towards sustainability and product longevity. The strategy reveals a tension between the ideal of repairability and the commercial realities of device engineering, positioning Samsung on a new competitive battlefield against Apple's closed ecosystem.

Samsung's expansion of its self-repair program represents a multifaceted strategic maneuver, driven by both evolving consumer sentiment and an increasingly strict regulatory landscape. The company has significantly broadened the scope of this initiative, extending it to 30 additional countries in Europe and, notably, including for the first time highly complex devices such as the Galaxy Z Flip5 and Z Fold5 foldable smartphones, alongside the Galaxy S23 and Tab S9 series. This expansion builds upon previous implementations in key markets like South Korea, Brazil, Mexico, and several European nations, demonstrating a global commitment to the strategy.

This rollout is not happening in a vacuum. It directly coincides with the consolidation of the "Right to Repair" regulatory framework in the European Union. Directive (EU) 2024/1799, which came into force in July 2024, mandates that manufacturers offer repair services at a "reasonable price" and explicitly prohibits the use of hardware or software techniques that impede or hinder third-party repairs. Additionally, starting in June 2025, the EU will require the display of a "reparability score" on the packaging of all new smartphones, a factor that will directly influence consumer purchasing decisions. The temporal and geographical correlation between the expansion of Samsung's program and the implementation of these regulations suggests that the initiative is a proactive measure for compliance and positioning. By getting ahead of the regulation and including its most complex devices, Samsung not only seeks to comply with the law but also to establish an industry standard and project an image of leadership and cooperation in the transition towards a more circular economy.

However, Samsung's strategy reveals a fundamental tension between the idealism of the repair movement and the commercial realities of consumer electronics manufacturing. This tension materialized with the dissolution of its partnership with iFixit, a leading community in the advocacy of open repair. iFixit ended the collaboration, alleging that the design of Samsung devices, described as "frustratingly glued together," forces the sale of key components like batteries and screens in pre-assembled bundles, which artificially raises the cost and complexity of repairs. This situation led iFixit to question Samsung's "commitment" to truly accessible repairability.

In a move that clarifies its true strategic intent, Samsung has simultaneously intensified its alliances with large-scale commercial repair networks, such as Cell Phone Repair by Assurant, adding more than 300 new locations, and uBreakiFix. Unlike iFixit, these partners operate under a business model that aligns with a controlled ecosystem. They offer "certified" repairs with "genuine" parts, which means Samsung maintains control over the spare parts supply chain, technical training, and, ultimately, the pricing structure. This approach indicates that Samsung's goal is not to foster a completely open repair market, which could erode its post-sale revenue, but rather to build and monetize its own circular economy ecosystem. The strategy is to accept the inevitability of repair but to channel it through an authorized network that generates a new revenue stream, captures valuable data on the product lifecycle, and reinforces customer loyalty, competing directly with Apple's restrictive and high-cost service model.

The market opportunity is considerable. By structuring an authorized repair network that is more accessible and transparent than its competitors', Samsung can capture a significant portion of a multi-billion dollar secondary market. Furthermore, by aligning with the values of European consumers, for whom durability and sustainability are increasingly relevant purchasing factors, it can strengthen brand loyalty and attract market segments that reject the disposable consumption model. The main risk is reputational and executional. Public criticism from a respected actor like iFixit undermines the initiative's credibility. If repair costs within its authorized network remain high due to hardware design limitations, consumers could perceive the program as a mere "greenwashing" tactic, which would erode trust rather than build it.

Recommendations

• Design for Disassembly: Towards Profitable Modularity: The critical analysis provided by iFixit should be interpreted as a fundamental warning signal for the R&D department. It is imperative to initiate a paradigm shift in design philosophy, moving from the traditional "design for assembly" approach to one of "design for disassembly." This strategic reorientation requires focused investment in research and development of alternatives to current manufacturing practices that hinder repair. Priority areas should include the exploration of high-strength but non-permanent adhesives, the standardization of internal connectors to reduce complexity, and the adoption of modular component architectures. The goal is not to sacrifice profitability, but to achieve a strategic balance where components with the highest failure rates—such as batteries, screens, and charging ports—can be replaced efficiently and cost-effectively within the authorized repair ecosystem. This would not only reduce the cost of spare parts by avoiding the need to sell them in pre-assembled bundles but would also drastically improve the devices' reparability score under the new EU regulations, turning a regulatory obligation into a tangible competitive advantage.

• Monetize the Extended Lifecycle: From Product to Service: The corporate strategy must formalize the transition from a business model focused exclusively on hardware sales to a hybrid model that generates recurring revenue throughout the extended lifecycle of the device. This involves creating a business unit with a specific profit and loss (P&L) statement, named "Lifecycle Services." This unit would consolidate revenue from the sale of genuine parts to the partner network, certification fees for repair shops, and the expansion of premium service plans like "Samsung Care+." These plans should be redesigned to integrate affordable and fast repairs as a core benefit, thus increasing their value proposition. From a technological standpoint, it is crucial to develop and implement a unified global platform that manages spare parts inventory, repair supply chain logistics, and the technician certification process at scale. This platform will not only optimize operations but also provide valuable data for strategic and financial planning.

• Transform Repair from a Cost to a Loyalty Touchpoint: The repair process must be strategically redesigned to shift from being a point of friction and a cost center to a positive customer experience that reinforces brand loyalty. The Operations department is responsible for ensuring that the network of repair partners (including Assurant and uBreakiFix) offers a standardized, high-quality service experience globally. This includes compliance with strict service level agreements (SLAs) for repair times, the implementation of a transparent pricing policy, and the offering of solid post-repair warranties. For its part, the Customer Success team must integrate each customer's repair history into the customer relationship management (CRM) system. This integration will enable proactive service, such as sending predictive maintenance notifications based on device usage or offering personalized discounts for future upgrades. By executing this strategy, an inherently negative event like a damaged device becomes an opportunity to demonstrate the brand's value and commitment, strengthening the customer relationship in the long term.