The refurbished smartphone market used to be one of the most profitable markets. The market not only offered premium used smartphones at a massively discounted price, but it also catered to the needs of those who preferred affordable smartphones over the expensive ones. However, there appears to be a downside to that market.
On June 11, a report claimed that the global refurbished smartphone market in 2019 decreased by 137 million units making the overall decrease a total of 1%.
The decrease in sales in the last half of 2019 was understandable since the market underwent a few changes, but that does not explain why the curve remained so during the first half of 2020.
This has been an issue of major concern for a lot of people because this is the first year in the global refurbished smartphone market that is experiencing a year-round decline in the past four years. Part of the reason could be the fact that there has been a major decline in smartphone sales in the US, China, and Europe.
The year-on-year decline reached 6%. The users also prefer now to continue using their smartphones extending the replacement cycle.
It is reported that China is the largest market for refurbished equipment. Another issue that we need to factor in is that more and more affordable smartphones are making their way into the market; thereby increasing the range of smartphones available.
The increase in range, variety, and the prices that the smartphones are available right now makes buying old refurbished phone almost a thing of the past for most users.
In other respects, some industry practitioners said that the current consumer shift from feature phones to smartphones and the desire for affordable high-end devices continue to drive the growth of the mobile phone market.