Used and Refurbished Smartphone Market - Growth, Trends, Forecasts (2020 - 2025)
Used and Refurbished Smartphone Market is expected to grow at a CAGR of 12.61% during the forecast period 2020 to 2025. The market is driven by improvements in methods of collection, grading, repairing of smartphones, and its online/offline selling.
Refurbished and used devices continue to provide costeffective alternatives to both consumers and businesses that are looking to save money when purchasing a smartphone. Customers can get upto USD 350 discount on Apple iPhones. For Instance, Apple Inc., on its official website, is offering refurbished iPhone X 256GB, which was originally released in September 2017, at a price point of USD 699 (a discount of USD 350 over its original price).
A higher percentage of refurbished devices are sold with warranties. Also, phones can be insured with proof of purchase. This greatly helps overcome consumer hesitancy to purchase refurbished devices. For instance, Samsung sells certified preowned devices, typically at least one modelyearold, at solid discounts. The big upside of directly buying from Samsung is getting a full oneyear warranty.
Thirdparty vendors/platforms, such as TMobile, Verizon, Amazon, etc., provide attractive offers to customers for refurbished smartphones. For instance, Amazon has a "renewed" refurbished electronics section where customers can find many lastgeneration devices at solid discounts. Amazon Warehouse is often a better choice for discounted phones. It doesn't technically have "refurbished" phones, but instead sells openedandreturned brand new (or gently used) products.
The impact of the outbreak of COVID19 may boost the cheaper refurbished smartphone segment, which had been shrinking for the past few years, as consumers cut back on discretionary spending and buy phones only for immediate needs. Even if sales reopen fully across retail channels, significant demand may not pick up until later this year.
Key Market Trends
Growing Popularity of ECommerce Platforms for Used and Refurbished Smartphones to Drive the Market
The growing popularity of ecommerce platforms for used and refurbished smartphones is expected to drive the market demand. Mobile specialists such as Carphone Warehouse and Direct Mobiles stock a huge range of refurbished iPhones. Alternatively, popular sites such as Amazon and eBay also offer a wide variety of refurbished smartphones.
Verizon has certified preowned devices, and it only sells preowned Samsung phones. Buying certified from the carrier gives the customer a bit of security, as Verizon offers a 90day warranty period.
OLX, an Indian online marketplace for used products, saw over 1.4 million preowned smartphones being listed in September 2018. According to the company, in 2019, Apple is the most commonly listed brand, with 19% of the total listing on the company's website.
Best Buy sells refurbished preowned, and openbox phones from a variety of companies at discounts ranging from 1030% off. Openbox deals are most popular as they're typically devices that have just been purchased, opened, and returned, not even used. Because of this, customers can often find the latest models of phones for sale, rather than just old models.
AsiaPacific is Expected to Register a Significant Growth Rate
AsiaPacific is one of the significant markets for refurbished smartphones, owing to the highly developing telecom sector and large customer base. Furthermore, the region is increasingly investing in the mobile network. Countries, like China, India, Japan, Australia, Singapore, and South Korea, are increasingly investing in the development of the domestic telecom market, which is also expected to drive the refurbished smartphones market in the region.
In September 2019, Paytm Mall, with its unique O2O (Offline to Online) model, announced the launch of certified refurbished phones of popular brands such as Samsung, iPhone, Oppo, Xiaomi, Oneplus, Vivo & Motorola. These smartphones come with 70% savings and warranty ranging from 6 to 12 months. Some of the top refurbished products available on Paytm Mall include iPhone X, OnePlus 6T, Redmi Note 5 Pro, and Samsung Galaxy S9 alongside others.
Demand for used and refurbished smartphones at entrylevel price point will be driven by demand in developing countries like India and Indonesia, where smartphones are penetrating even to rural areas as local governments are pushing for digital and mobile economy. For instance, the Digital India program is a flagship program of the Government of India with a vision to transform India into a digitally empowered society.
All these developments in the region are expected to drive the demand for refurbished smartphones during the forecast period.
Used and Refurbished Smartphone Market is consolidated in nature as the market is currently dominated by Samsung and Apple Smartphones. Major players include Samsung Electronics Co., Ltd., Apple Inc., Amazon.com, Inc., among others. Few recent developments are:
May 2020 Woot, Inc. launched a sale of refurbished smartphones, pricing some as cheap as USD 39.99. The company is offering some newer smartphones, like Google Pixel 2, which starts at USD 99. Refurbished iPhones offered for sale on the company's website include iPhone 8, iPhone 8 Plus, iPhone XR, iPhone XS, iPhone XS Max, iPhone 11, iPhone 11 Pro, and iPhone 11 Pro Max.
February 2020 Samsung Electronics launched its Galaxy Z Flip with a 6.7inch FHD+ Dynamic AMOLED Infinity Flex display for USD 1380. Powering the Z Flip is a Qualcomm Snapdragon 855+ processor with 8GBs of RAM. It runs Android 10 with the Samsung One UI on top, comes with 256GB of internal storage, and features a 3,300mAh battery. Additionally, AT&T, BestBuy, and Sprint will also offer the Z Flip on their websites.
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