Galaxy trade-in program receives mixed reactions By Lee Min-hyung Samsung Electronics is pushing ahead with its own smartphone upgrade program in a move to offset the lukewarm reception for its Galaxy S7 and S7 Edge, which many feel came with "no surprises." The company plans to launch a so-called "Galaxy Club" trade-in program in Korea this week. The service will operate globally. The plan is part of efforts to increase customer loyalty. Samsung's main rival Apple has been running a similar campaign "iPhone upgrade program" since last year. Galaxy Club users can buy the new devices on a two-year installment plan, and get a new Galaxy series next year without paying the remaining installments. Insiders have expressed mixed reactions over Samsung's plan. "The Galaxy series has relatively lower residual value, compared to iPhones," said a telecom industry source. "This will put more pressure on Samsung unless the company charges enough to customers who join the club." Samsung Electronics has yet to unveil details about how it will run the program here. A company official said, "We will soon unveil our specific plan for the Galaxy Club, but nothing has been confirmed as to when it will take place." Expectations are that the company will announce its plan ahead of the two devices' official launch here on Friday. Samsung is expected to unveil its marketing strategy for the new trade-in program during the event. There is a possibility that Samsung will team up with the nation's major mobile carriers ― SK Telecom, KT and LG Uplus ― to attract more customers. The three carriers remained cautious about revealing details for their partnership with Samsung, saying they would adopt a wait-and-see approach because Korean customers were relatively unfamiliar with such a trade-in program. Another industry source said the key would be how Samsung offered enticing options for the program. Apple charges each iPhone upgrade program user $32.41. "Galaxy Club's success will be determined by the monthly price for using the service," the source said. "Given the relatively weak residual value, Samsung may have to bear more of the burden to differentiate the program from Apple's." But he said the company may gain an upper hand through the program, because it would come before the official launch of LG Electronics flagship smartphone G5. The device was a sensation at this year's Mobile World Congress (MWC) in Barcelona, for adopting modular type slots that can be replaced with other camera or audio systems. "Galaxy Club may help Samsung drive its sales if it receives favorable responses from customers," the source said.