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Used and Refurbished Smartphone Market – Growth, Trends, Impact of COVID-19 and Forecast (2022)

Used and Refurbished Smartphone Market – Growth, Trends, Impact of COVID-19 and Forecast (2022)

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Global Used and Refurbished Smartphone Market (hereinafter referred to as the Researched Market) was valued at 251.09 Million Units in 2021, and it is projected to reach 459.86 Million Units by 2027, registering a CAGR of 10.

New York, May 19, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Used and Refurbished Smartphone Market – Growth, Trends, COVID-19 Impact and Forecast (2022 – 2027)” – https://www.reportlinker.com/p06227801/?utm_source=GNW
23% during the period 2022-2027 (hereinafter referred to as the forecast period).

Highlights
Several product launches in the high-end smartphone segment, more brand options, new pricing, and the overall ambitious value of an upgraded smartphone are some of the significant factors that are rapidly pushing the smartphone industry. second-hand to expand its market in several geographic areas worldwide.
The ability to use an already owned device to finance the purchase of a new or used device also plays a crucial role in the growth of the used and refurbished smartphone market. The recovery, combined with the increase in financing plans (EIP), is also expected to act as a significant driver for used and refurbished smartphones during the forecast period.
An increase in the upgrade cost has been one of the major reasons for the growth of the market. An increase in the prices of high-end smartphones has led many consumers to keep their phones much longer than expected. However, at the same time, this factor has also increased the average selling price of a used device.
The overall mobile device industry has declined due to supply issues, high inventory levels and declining customer demand due to high inflation. The smartphone will spend the next decade acting more and more like a central hub until it is completely replaced by portable displays, ubiquitous voice assistants and ambient interfaces, thanks to converging trends, such as 5G and AI. in the cloud. This could be a deadly trend for smartphones.
The emergence of COVID-19 has led to a move towards working from home and studying from home. The trend towards remote work has grown steadily over the past decade. However, the effect of COVID-19 dramatically accelerated this trend in an extremely short period of time, forcing businesses of all sizes to quickly adapt to the self-isolation measures that governments around the world were recommending.
Delayed availability of new handsets due to supply chain constraints and lower available cash due to the pandemic has pushed local demand for refurbished smartphones to new milestones. According to the CEO of Yantraa, refurbished smartphones in the price range of INR 4,000 to INR 6,000 were sold out in less than 30 minutes, suggesting the growing demand for second-hand phones in the market.

Main market trends

Growing popularity of e-commerce platforms for used and refurbished smartphones

The market has seen several players making strategic investments and acquisitions to tap into the growing smartphone secondary market. For example, to diversify and expand its association with offline retailers, in July 2021 popular re-commerce platform Cashify announced that it would help offline retailers sell refurbished smartphones online. Cashify also acquired UniShop, an omnichannel retail solution platform, to enable businesses to start a full-fledged online store. This new range of services will be renamed PhoneShop.
Additionally, in November 2021, Meridiam invested €15 million in CertiDeal, a leading French digital circular economy platform selling in-house refurbished smartphones, tablets and other high-end devices in France.
In January 2022, Flipkart Group announced the acquisition of Yaantra, an e-commerce company, for an undisclosed amount as part of efforts to strengthen its re-commerce business and improve its aftermarket offerings of re-commerce for its customers in the smartphone segment.
Such an increase in buying and selling platforms has, in turn, increased visibility and helped sellers get the right price for their old phones. It has standardized the smartphone secondary market and also increased the competition among different market players.
As e-waste is the fastest growing solid waste stream in the world, growing at a rate three times faster than general waste in a country like Australia, market sentiments have turned to the purchase of refurbished smartphones which have gained traction with several players such as Boost Mobile, Cole’s and Phoenix Cellular.
Amazon, the world’s largest online retailer, has a dedicated section for refurbished devices. Customers can sell their old smartphones to Amazon in exchange for a discount on a new gadget. The company inspects them and makes the necessary repairs to keep them looking and working like new. These devices are then sold in the refurbished sector. They are even covered by a limited warranty from the supplier or manufacturer.
Supply chain issues and chip shortages are also helping to propel the refurbishment industry forward. Companies are turning to refurbished electronics suppliers to meet this demand, which is expected to drive the refurbished electronics industry, particularly smartphones.

North America is expected to register significant growth

Growing advancements in smartphone features and growing reach of 5G smartphones are some of the major factors driving the growth of used and refurbished smartphones market in North America. The United States is one of the most advanced markets for smartphone vendors in the world. The region has a history of developing innovative smartphones, especially with vendors, like Apple, which have changed the dynamics of the global smartphone market.
According to the GSMA, North America will surpass 1 billion 5G connections by 2022 and 2 billion by 2025, thanks to continued carrier investment in networks and the growing range of 5G smartphones at varying price points. By 2025, North America will have become the first region where 5G will represent more than 50% of total connections.
The region is also witnessing the trend of low-end smartphones and mid-range devices as many smartphone makers believe it is more viable in the market situation affected by the COVID-19 pandemic. Although other brands and product lines are available, iPhones and Samsung’s high-end flagships mainly accounted for the major market shares. Changing trends may boost the region’s used and refurbished smartphone market.
North American trade-in service providers have seen growth in their product business over the past few years due to businesses and consumers updating and upgrading their devices due to changes in the workplace and Workforce. For example, in February 2021, Phobio, a trade-in service for mobile operators and consumer electronics brands, was named trade-in provider for three new companies: Hyperion Partners, Amazon Canada and Drone Nerds. The company approximately doubled its revenue in 2020. This momentum continued in 2021 as the company added new businesses.
The refurbished smartphone market in the region has witnessed an increase in investment. For example, in May 2021, within three years of its launch in North America, Back Market, a marketplace dedicated to refurbished electronics, announced a $335 million investment round led by General Atlantic, with the support of Generation Investment Management and existing investors Aglaé Ventures, Goldman Sachs Growth Equity, Eurazeo and Daphni.

Competitive landscape

The competitive rivalry between used and refurbished smartphone vendors is very high, owing to the presence of various smartphone brands across the world. Some of the major smartphone giants are Samsung, Huawei, Apple, Xiaomi, Oneplus and many more, which are vying for market share across the globe. The demand for refurbished smartphones has increased in recent years due to the massive penetration of smartphones in developing countries. This has led to an increased focus on customer acquisition and the formulation of distribution channels as key strategies to maintain competitive advantage and market share.

March 2022 – iPhone 12 and iPhone 12 Pro models have been introduced to the official Apple Certified Refurbished store. A new battery, new outer shell, genuine Apple part replacements (if needed), and a one-year warranty are included with products purchased from the Apple Certified Refurbished Store.
September 2021 – Reboxed Limited secured £1m in funding in new seed investment round led by Department of Sound and angel investors and raised up to £705,000. Funds raised in this round are intended to support the launch of the Reboxed recycling service, allowing customers and retailers to trade in used devices through the Reboxed TechCheck software.

Additional benefits:

The Market Estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06227801/?utm_source=GNW

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