Market Trends of Used And Refurbished Smartphone Industry
Growing Popularity of E-commerce Platforms for Used and Refurbished Smartphones to Drive the Market
- The growing popularity of e-commerce platforms for used and refurbished smartphones may be attributed to several factors. Consumers are increasingly seeking cost-effective alternatives to new devices, and these platforms offer more affordable options. The rise of environmentally conscious consumers has fueled interest in extending the lifespan of electronics by purchasing pre-owned devices. The convenience of online transactions and the ease of comparing prices and conditions further contribute to the appeal of e-commerce for used smartphones.
- According to Monetate, global consumers spend the most money on online purchases made through mobiles. Between July 2022 and September 2023, the average order value from mobile purchases peaked in April 2023. Shoppers spent an average of USD 105.45 on online orders that month.
- As e-waste is the global fastest-growing solid-waste stream, rising at a rate three times faster than general waste in the country such as Australia, the market sentiments have transferred over to buying refurbished smartphones, which have grown traction among several players like Boost Mobile, Cole's, and Phoenix Cellular.
- The global online retailer Amazon has a dedicated section for refurbished devices. Users can easily sell their old smartphones to Amazon in exchange for a discount on a new gadget. In addition, the business inspects them and makes the mandatory repairs to make them seem and function like new ones. These devices are then sold in the refurbished sector and backed by a vendor or manufacturer's limited warranty.
- There is also a category called manufacturer reconditioning, which distinguishes itself from fixes performed by local repair companies. Like original equipment makers, the manufacturer repairs the phone with original components, confirms its functionality, and renews it in a "like new" state. Most people look for such phones, and customers prefer refurbished smartphones.
- The supply chain issues and chip shortages are also helping propel the refurbishing sector forward. Organizations are turning to refurbished electronics suppliers to meet this requirement, which is anticipated to augment the refurbished electronics industry, particularly smartphones.
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North America Expected to Witness Significant Growth in the Market
- The rising advancements in smartphone features and the increasing scope of the 5G smartphones are some of the major factors augmenting the growth of the North American used and refurbished smartphone market. The United States is among the advanced markets for smartphone vendors globally. The entire region has a history of developing innovative smartphones, mainly with vendors like Apple, that have transformed the smartphone market dynamics.
- The growth in North America's used and refurbished smartphone market may be attributed to several factors. Consumers are becoming more cost-conscious, seeking affordable alternatives to new devices. The availability of certified refurbished phones provides a reliable and budget-friendly option.
- As per Walmart, in the United States, as of September 2023, many refurbished smartphones were available at Walmart. The iPhone 11 (64GB) was the best-selling reconditioned smartphone, costing around USD 264. The Samsung Galaxy G998U S21 Ultra (128GB) ranked second and sold for USD 365.
- As per GSMA, North America surpass 1 billion 5G connections by 2022 and 2 billion by 2025, mainly driven by continued network investments from operators and the expanding range of 5G smartphones at varying price points. North America will have become the first region where 5G accounts for more than 50% of total connections by 2025.
- To reduce electronic waste, the US Environmental Protection Agency (EPA) has been conducting the Sustainable Materials Management Electronics Challenge, which encourages brand owners, electronics manufacturers, and retailers to strive to send 100% of the used electronics they collect from businesses, the public, and within their organizations to third-party certified electronics refurbishers and recyclers.
- Environmental concerns also play a role, as more individuals opt for refurbished devices, contributing to reduced electronic waste. Improvements in refurbishment ensure that these devices meet high-quality standards, addressing previous concerns about reliability.
- Overall, the increased awareness of manufacturers' and retailers' benefits and effective marketing strategies have contributed to the rising popularity of used and refurbished smartphones in North America. This trend is likely to continue as consumers prioritize sustainability and affordability in their purchasing decisions.
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