The refurbished smartphone market grew 15% in 2021 over the previous year, outpacing the 4.5% growth of the new smartphone market. Research on counterpoint reports that the refurbished units are gaining popularity among both consumers and smartphone makers.
The move to 5G has prompted many users to upgrade, and interestingly, the higher sales of new units have helped boost sales of refurbished units. Many suppliers have turned to trade-in agreements to reduce the cost of purchasing new models, which in turn has increased the availability of units that can be refurbished and sold again.
Cost savings are a big factor in why people choose refurbished over new – a second-hand phone can be on average 60% cheaper than a new unit. The two markets that have seen the greatest growth are Latin America (+ 29%) and India (+ 25%).
However, mature markets such as the United States (+ 15%), Europe (+ 10%) and China (+ 10%) have also seen an increasing number of people buying refurbished phones. Those markets are also suffering from a liquidity crisis, but there is more.
Sustainability and eco-friendly initiatives are becoming more and more popular with consumers, and getting a refurbished phone instead of a new one is a great way to cut down on electronic waste. These initiatives are also gaining ground with manufacturers and carriers, although their main focus remains on profitability.
“In the EU, government initiatives are helping secondary market sales. Carriers are also making efforts to use more secondary market devices with e-waste reduction goals. Finally, EU markets and collection companies, such as Back Market and EcoATM, are increasing their presence “, writes research director Jeff Fieldhack.
Hence, it is not just OEMs and operators, but also third parties are expanding their renewed telephony business. This was made possible by the growing Right to Repair movement in Europe, the United States, and Japan, as companies opened up access to genuine parts and tools to unaffiliated repair shops.
Apple’s iPhones still lead the used market, but Samsung’s models are also gaining popularity and closing the gap.
Start a new Thread