Friday, December 1, 2023

The iPhone owned a commanding 49% share of the global refurbished smartphone market in 2022 – do phone


For those who’re trying to purchase a phone that you just actually, actually love however is absolutely, actually out of your finances vary, you may wish to take into account shopping for a refurbished mannequin of the phone. Refurbished telephones are beforehand used handsets which were cleaned up with broken components changed and a new battery added. In keeping with Counterpoint Research, the iPhone has a commanding 49% market share of the global refurbished (or secondary) smartphone market adopted by Samsung’s 26%.
Total, the refurbished smartphone market noticed gross sales develop 5% worldwide in 2022 regardless of a 17% decline in China. Not surprisingly, India led the method with 19% progress as the growing nation can be the world’s second-largest smartphone market. Which means curiosity in smartphones in the nation is sizzling and heavy even when customers do not have the similar quantity of cash to spend on new flagship telephones as customers in different international locations have.

The iPhone is the quickest-rising model in the global secondary smartphone market

Apple’s global gross sales of refurbished telephones rose 16% on an annual foundation in 2022 and the iPhone is the quickest-rising model in the used and secondary smartphone market. Whereas this progress is impacting gross sales of new iPhone fashions, it will probably solely enhance Apple’s Providers income since these buying refurbished iPhone items can nonetheless purchase apps and subscribe to sure Apple providers. Gross sales of refurbished Samsung telephones declined as a small share of Android customers in the secondary market switched to iOS final yr.

Curiously, Counterpoint says that the demand for refurbished smartphones is coming from new smartphone consumers in mature markets and from function phone customers switching to smartphones in rising markets. Provides of refurbished smartphones are more and more coming from specialised retailers specializing in the gross sales of these units. But additionally concerned today are some carriers and phone producers who are actually providing refurbished telephones on the market.

The Common Promoting Value (ASP) of smartphones in the secondary market picked up final yr as a bigger share of gross sales in this market consisted of refurbished flagship and premium fashions. The ASP of new smartphones has been going up which has led customers to carry on to their new telephones for longer durations of time which has led to a scarcity of telephones to promote in the secondary market.

Over the previous couple of years, gross sales of refurbished smartphones have outperformed gross sales of refurbished fashions. In 2019, gross sales of new telephones declined 2% in comparison with a 1% decline for refurbished smartphones. The subsequent yr, new phone gross sales declined by 12% whereas gross sales of refurbished fashions rose 5%. Each new and refurbished handsets had gross sales positive factors in 2021 of 5% and 14% respectively. Final yr was a return to 2020’s numbers with new gross sales down 12% and refurbished gross sales up 5%.

5G telephones made up 13% of the secondary market final yr and is predicted to rise this yr

Apple noticed its market share in the secondary market rise from 44% in 2021 to 49% final yr. Samsung’s share in this market declined to 26% final yr from 28% in 2021. After Apple and Samsung, the relaxation of the secondary market is made up of manufacturers with tiny slivers of the secondary market. Vivo and Oppo every saved their 3% share of the market in 2022 whereas Huawei’s declined from 4% to three%.

As for 5G, Counterpoint Senior Analyst Glen Cardoza stated, “…demand for 5G is rising, particularly in mature markets like the US, Europe, and Japan. In 2022, 5G made up 13% of global refurbished gross sales.” This yr, Counterpoint forecasts 5G telephones to seize a bigger portion of the secondary smartphone market and as a consequence, 4G telephones may lose extra of their worth at a sooner fee.

As well as, with customers buying and selling in their telephones at a sooner clip and shifting towards premium telephones, Counterpoint says that “the stock of low-grade used smartphones might develop considerably.” As for these companies in the enterprise of promoting refurbished smartphones, the report says that “Apple’s iPhones remained the most sought-after smartphones as a consequence of the model notion, excessive margins, and excessive stock turnover ratios.”

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