Home Mobility Refurbished smartphones - 2017's fastest growing segment

Refurbished smartphones - 2017's fastest growing segment

Counterpoint's Refurbished Smartphone tracker shows the global market grew 13% YoY in 2017, reaching 140 million units, compared with new smartphone sales growing just 3% last year.

There's plenty of value in secondhand smartphones it seems, according to the latest research from Counterpoint’s Refurbished Smartphone tracker

As noted above, the refurb market grew 13% YoY in 2017, compared with 3% for new smartphones, thus being outpaced by refurbished “second life” smartphones.

CounterpointCounterpoint states that "refurbished smartphones are pre-owned smartphones that are collected, rejuvenated or repaired to be sold again in the market.

"Only 25% of all pre-owned phones are sold back into the market. Of these, only some are refurbished. The result is that there are many grades of refurbished devices that attract different price points depending on available quantity and demand for a specific model or variant (colour, memory storage, etc.)".

Commenting on this trend, Counterpoint's Research Director, Tom Kang, said: “With 13% growth, refurbished smartphones are now close to 10% of the total global smartphone market. The low growth of the new smartphone market in 2017 can be partially attributed to the growth of the refurb market.

"The slowdown in innovation has made two-year-old flagship smartphones comparable in design and features with the most recent mid-range phones. Therefore, the mid low-end market for new smartphones is being cannibalised by refurbished high-end phones, mostly Apple iPhones and, to a lesser extent, Samsung Galaxy smartphones.”

We're told that "Apple and Samsung’s dominance is more obvious in the refurb market than in the new smartphone market.

"The two brands combined hold close to three-fourths of the refurbished smartphone market, with Apple leading by a significant margin. In terms of revenue, the dominance grows further, as the two smartphone giants control more than 80% of the revenue in the refurbished smartphone market."

Commenting on the findings, Research Director, Peter Richardson, noted, “It’s a surprise to many that the fastest growing smartphone market in 2017 was not India or any other emerging market, but the refurb market. With refurb smartphones in play we think the market for new devices will slow further in 2018.”

Richardson added: “Regions seeing the highest volume include the US and Europe. While the fastest growing markets for refurbs include Africa, SE Asia and India. All have been seeing initiatives from the major operators (e.g. Verizon, Vodafone etc.), OEMs (e.g. Apple) and major distributors (e.g. Brightstar) who are adding full life-cycle services.

"The industry uses data analysis to predict future resale values of devices, which means consumers can be given a guaranteed buy-back value at various points during their ownership. This helps consumers to manage the high cost of the latest flagship smartphones – or at least to obtain a useful contribution to partially offset the cost of their next phone.”

Richardson concluded: “This is a burgeoning market allowing various stakeholders to maximiSe the life-time value of a mobile device. For many in the industry, the profit margin on a used device exceeds that of a new device.

"It is also positive from the perspective of maximiSing the use of valuable resources, so many players position refurb devices as ‘green’. While this is indeed true it also keys-in to current consumer sentiment in many markets. Overall, we expect this trend to continue gathering pace.”

LEARN HOW TO REDUCE YOUR RISK OF A CYBER ATTACK

Australia is a cyber espionage hot spot.

As we automate, script and move to the cloud, more and more businesses are reliant on infrastructure that has the high potential to be exposed to risk.

It only takes one awry email to expose an accounts’ payable process, and for cyber attackers to cost a business thousands of dollars.

In the free white paper ‘6 Steps to Improve your Business Cyber Security’ you’ll learn some simple steps you should be taking to prevent devastating and malicious cyber attacks from destroying your business.

Cyber security can no longer be ignored, in this white paper you’ll learn:

· How does business security get breached?
· What can it cost to get it wrong?
· 6 actionable tips

DOWNLOAD NOW!

RECOVERING FROM RANSOMWARE

Ransomware is a type of malware that blocks access to your files and systems until you pay a ransom.

The first example of ransomware happened on September 5, 2013, when Cryptolocker was unleashed.

It quickly affected many systems with hackers requiring users to pay money for the decryption keys.

Find out how one company used backup and cloud storage software to protect their company’s PCs and recovered all of their systems after a ransomware strike.

DOWNLOAD THE REPORT!

Alex Zaharov-Reutt

One of Australia’s best-known technology journalists and consumer tech experts, Alex has appeared in his capacity as technology expert on all of Australia’s free-to-air and pay TV networks on all the major news and current affairs programs, on commercial and public radio, and technology, lifestyle and reality TV shows. Visit Alex at Twitter here.

 

Popular News

 

Telecommunications