Sunday, December 10, 2023
Apple

As smartphone upgrades plummeted, used iPhones sold like hotcakes – do phone

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Promoting a brand new smartphone is the toughest it has been in years. Rising system prices, restricted variations between mannequin upgrades, and financial and setting-associated wishes to maintain electronics alive so long as attainable are making individuals flip to refurbished telephones, knowledge shared this week by analyst Counterpoint discovered. And if somebody is shopping for a refurbished phone, there is a good likelihood it is an iPhone.

In accordance with Counterpoint, Apple represented 49 % of refurbished telephones sold worldwide in 2022. The variety of refurbished iPhones sold elevated 16 % yr-over-yr, with the general used smartphone market rising 5 % yr-over-yr, Counterpoint mentioned. The numbers can be even increased, however a reported 17 % drop in refurbished smartphone gross sales in China—pushed, the agency mentioned, by a rise in COVID-19 instances and associated insurance policies—was detrimental.

By Counterpoint’s measures, Apple grew its market share right here from 44 % in 2021 to 49 %. Samsung is the largest competitor, however it misplaced market share.

Counterpoint mentioned Android customers switching to Workforce iOS in 2022 was an element that “will possible proceed” this yr.

iPhones are thriving on this space, partially as a result of it is simpler to earn money reselling a licensed, pre-owned-grade iPhone than it’s different units, Counterpoint Analysis Director Jeff Fieldhack mentioned in an announcement shared with the analyst’s announcement. iPhones are additionally standard amongst refurbishers as a result of they’ll promote for extra. For instance, Again within the Field, which refurbishes and sells telephones and different electronics, lately informed The Wall Street Journal that it prefers iPhones to Android units, largely as a result of “Apple updates system software program for extra years than its rivals do,” in line with the WSJ.

As a result of Apple merchandise are costly, used or refurbished alternate options are standard with consumers wanting to save cash however keep in Apple’s ecosystem. Used iPhones and different merchandise do not have the identical warranties as new units, however clients who purchase refurbished Apple merchandise from Apple straight, for instance, can see a restricted guarantee and buy AppleCare safety to make the acquisition safer.

In accordance with Counterpoint, in mature markets like the US, 2022 demand for refurbished smartphones largely got here from individuals looking for a brand new phone, in comparison with rising markets, the place demand got here from individuals trying to improve from a characteristic phone.

Refurb’s status

A brand new development the analyst highlighted is that clients extra regularly flip to used telephones to save cash on excessive-finish flagship units. In the meantime, used phone sellers have efficiently improved the shopper notion of used units by way of advertising and marketing.

Many are pushing commerce-ins by providing clients credit score. IDC predicted that in 2023, consumers would see “extra beneficiant commerce-in provides and promotions.” We have seen this begin coming to fruition with the likes of Apple increasing trade-in values for some iPhones (iPhone 13 Professional Max, 13 Professional, 12 Professional Max, and seven Plus) in March. A number of weeks later (and proper earlier than Earth Day), the corporate launched a extra informative commerce-in web site with a brand new look, as famous by 9to5Mac.



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