The companies who buy 2nd-hand (used) electronics (smartphones / mobiles / televisions / etc.) sell them off at loss to some 3rd party vendor - usually at a LOSS.
Question is that why does a company bear that LOSS?
Reasoning:
LOSS = Customer Acquisition COST
Usually high end electronics (smartphones & televisions) have high profit margins - at times up-to 50% - which means that if the sale-price of a smartphone is $600, the company is making $300 profit in it.
So, to acquire a new customer base, they can give away a share of their profit margin to the customer.
A Buy-back Scheme; from this perspective; is no different from any other promotion / offer run by a company.
sample "Exchange offer" ad
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