refurbished smartphones are more popular than new smartphones because they last longer and people don’t have to spend as much money on them. Apple’s sales in the category grew 16% year-on-year in 2022, proving that people still value their iPhones.
China’s refurbished smartphone sales saw a 17% decline, mainly due to the resurgence of COVID-19 and the arrival of COVID-Zero policies. As a result, the global secondary smartphone market growth YoY in 2022 was 5%. This suggests that despite government efforts to curb industry growth, refurbished smartphones will continue to be popular among consumers in certain regions.
The rapid growth of Indian smartphone sales indicates that the region is a key market for mobile devices.Secondary smartphone sales figures from Telefonica show that China’s slump had a larger impact than expected on the entire industry, with India and Latin America taking advantage of this by growing at rates much higher than anticipated.
Apple’s domination in the used and refurbished market is evident in the company’s impressive growth rate. This growth can be seen as a result of Apple’s reputation for quality products and their customer service, which has helped to keep buyers loyal. In 2022, Apple captured over 49% of the secondary market, becoming the fastest-growing brand in this sector globally.
When new iPhones first hit the market, they were in high demand, which created an opportunity for refurbished models to sell. However, Apple has succeeded in making a name for itself as a provider of high-quality refurbished products, even in places where new iPhone variants are hard to find. This strategy is likely to attract more buyers and keep service revenues growing in many markets.
Apple’s long-standing policies and practices of selling refurbished iPhones, delivering regular software updates even on older models, and having a one-year warranty on the battery and out shell make refurbished iPhones more appealing to consumers. Consistent with Apple’s sustainability-focused initiatives, refurbished iPhone models often come with components that have been tested and ensure optimum performance.
Apple has been a great success in the refurbished market, specifically in countries such as India. This growth has been largely due to Apple’s ability to create high-quality products that are still new, but have already had some wear and tear taken care of. This allows consumers to get products that are both functional and stylish, at a fraction of the cost of new versions.
One reason refurbished Apple iPhone models are so popular in India is that they offer a lower entry point into the company’s ecosystem than new iPhones. This provides users with an affordable option while still maintaining the high-end features and design that have made Apple such a popular choice among luxury consumers.
The global refurbished smartphone market is growing rapidly, with South Asian nations making up a significant portion of the market. However, the country’s size still remains small compared to other major regions.
Despite Samsung’s dip in the secondary market, analysts say that Android users continue to migrate to iOS, which affects Samsung’s refurbished sales.
Counterpoint Research suggests that people who view memes as a form of low-quality entertainment are actually more likely to engage in other risky behaviors, like smoking and partying.
5G will be the go-to network for future devices and services, which is why refurbished smartphones are such a large part of the market. In 2022, 5G made up 13% of global refurbished smartphone sales, indicating just how popular this new network technology is.
Counterpoint believes that the business potential of refurbished smartphones remains high, despite limited supplies. This is because imports from mature markets like the United States, Europe, and Japan have slowed as these countries cater to their own demand. Consequently, this has created a market opportunity for regional players in emerging markets like LATAM, Southeast Asia, India and Africa.
Overall, while there is room for improvement in the secondary market, marketers should be encouraged by the fact that consumers continue to prefer buying premium and flagship smartphones in this market. This results in a growth in the average selling prices of these devices, which indicates that there is still significant demand for high-end smartphones. With more stringent regulation on how old or broken a phone can be before it’s eligible for refurbishment, companies must make sure to stand out from the competition and offer quality products at an affordable price point to ensure success on this market.
Given the significantly high prices of new smartphone models, refurbished smartphones are becoming increasingly popular among customers. These phones are often less expensive than brand- new models, and they can be used in many cases exactly as if they were new. Businesses and jobs that are struggling may be drawn to the refurbished smartphone market because it provides a way to reduce costs without necessarily sacrificing quality. Additionally, macroeconomic factors impacting businesses and jobs around the world may create an even bigger potential for growth for the refurbished smartphone market in coming years.
In 2021, there will be an increase in trade-ins and a shift toward premium smartphones, which will help increase the inventory of low-grade used smartphones. This year, refurbished smartphone sales are predicted to rise as end-of-life activities like disassembly, logistics, warehousing, recycling and e-waste disposal boost sales.
