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The Incredible Growth of the Refurbished Smartphone Market

refurbished phones

Who would have ever thought that a used phone could capture such a large customer segment and reach the size we see today? Not so long ago, some people were whispering about the appearance of a pre-used phone, but nobody paid attention. Some people have doubted, while others have completely rejected it as a temporary buzz. A few years later, renewed phones became a world market of £ 14 billion at the end of last year and are expected to grow further in the next few years.

Anyone looking to buy a new phone these days is certainly with the term “renewed phones”, that’s how the trend is generalized nowadays, especially with vendors like Amazon and Apple who are selling phones like this.

If you are the one who must properly investigate before making a purchase, you must surely have found the report from Counterpoint Research, the firm that examines the global sector, shows that the market for renewed phones has increased by 13% year after year. The smartphone market has grown by only about 3%, according to the same report, which is well below the sale of reconditioned smartphones.

Such rapid growth surprised people with some surprise. Why has it become so popular in such a short time? We will see.

What does a “refurbished phone” mean even?

refurbished phones

We talk so much about a renovated phone, but what does it mean? Is it the same as a used phone, because they are not new under the sun? It is said that a phone was refurbished when it was sold or returned to a retailer; however, unlike a used or used phone, it is not resold as is. Before being resold, it is inspected and repaired, if necessary, and tested relentlessly to avoid problems. A demonstration device may also be sold under the name of reconditioned, provided that it undergoes all the same types of tests before putting it on sale.

Because phones are no longer new, have been used, used, opened and repaired, they can no longer be sold at the same price as a new phone. Retailers lower their prices to make a sale. That’s why all refurbished phones are much more affordable than a new smartphone. For example, the Apple iPhone X which sells for £ 999 brand new, but its refurbished counterpart can be sold at around £ 790. Which will give you peace of mind?

So why did they suddenly become so popular?

refurbished phones

Who does not want to save money, especially when he can have the same functions for a lot less? Affordability was one of the main factors that contributed to increased interest in renovated phones.

The prices of new smartphones are reaching the ceiling, prompting customers to look elsewhere for satisfaction. And the refurbished smartphones gave them exactly that. In fact, the Wall Street Journal mentioned in a report that rising smartphone prices sent customers to refurbished phones. The money people can save on smartphones these days can help them buy other electronics, such as a TV or laptop.

Some studies have shown that customers have completely abandoned new smartphones and focused only on refurbished phones. The sale of new phones has decreased this year. This may be due to the lack of work of the innovation department, which forces customers to look for better pricing options. Each new model was launched with only a minor modification of the previous one. As a result, customers began to opt for older, more affordable and newer models than the previous one.

The smartphone market is saturated, so it seems that companies lack breathtaking ideas. And yet, despite this, prices are very high. The slight changes to the body and software are not enough to justify the prices offered by these phones. Thus, people started to think in a practical way and instead developed a great interest in refurbished smartphones.

In addition, update cycles are also one of the other factors that have made refurbished phones desirable. Previously, the update cycle was up to 24 months, but there is now an unexpected increase. The update cycle is now pretty close to 27 or 28 months.

Also take a look at this: how to reduce costs? When you buy refurbished iPhones

refurbished iphone

There is also the issue of electronic waste. Although smart phones do not doubt to become a necessity, you cannot deny the damage to the environment. The use of refurbished phones is one way to help reduce electronic waste in the environment. And, therefore, it has become a very attractive option for environmentalists.

So, what does this increase mean for the smartphone industry?

The smartphone industry has certainly been affected by the emergence of renewed phones, while giants such as Apple and Samsung have entered the market. This does not solve the problem of its new smartphones.

Critics urge companies to improve their research and development activities to provide compelling enough innovation to attract customers. Goodwill is no longer enough for the flagship phones to work. They recommend that companies invest in more attractive areas, such as augmented reality and other areas of artificial intelligence.

As there are many rumors about the new 5G network, people will be forced to buy new models to take the next step. However, if companies continue to lower their prices above the sky, 5G may not be enough reason for people to move away from refurbished phones.

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