The refurbished smartphone market has grown by 15% in 2021 (compared to 2020). This figure far exceeds the growth of the new smartphone market of 4.5% (during the same time period).
According to Counterpoint Research, customers are getting increasingly interested in refurbished electronics. Additionally, smartphone makers are paying increased attention to this sector.
Users’ desire to upgrade to 5G smartphones also contributes to the rise of the refurbished smartphone market. To save money, many consumers have opted for refurbished devices to take advantage of 5G connectivity.
Cost reduction is a significant element in why many people opt for reconditioned phones over new. A used phone is typically 60% less expensive than a new phone. Latin America (+29 percent) and India (+25 percent) are the two fastest growing markets.
However, markets such as the United States (+15%), Europe (+10%), and China (+10%) saw an increase in the number of buyers of old phones. This condition is assumed to be the result of the economic crisis.
Environmental stewardship is another reason why many people purchase used phones. “Government actions in the EU are assisting with secondary market sales,” said Jeff Fieldhack, Research Director. Additionally, service providers are attempting to increase their use of secondary market equipment in order to reduce e-waste. ”
Thus, it is not just OEMs and carriers that are developing their refurbished phone business; third parties are also expanding their refurbished phone company. This is fueled by Europe’s, the United States’, and Japan’s burgeoning Right to Be Correct movements. Businesses are increasingly allowing repair companies to use non-genuine parts and tools.
While Apple iPhone continues to dominate the refurbished phone market, Samsung’s devices are closing the gap.