Smartphones, especially premium ones, cost a lot these days. The most expensive iPhone can set you back by close to Rs 1.5 lakh whereas Samsung’s foldable phones cost even more than that. Often people turn to second-hand phones and a report by Counterpoint Research suggests that the refurbished market is growing. “The global refurbished smartphone market saw healthy growth across most regions in H2 2020”, says the research by Counterpoint.
The iPhone factor in the refurbished market
Apple, as per the report, has made big gains in the second-hand smartphone market. According to Jeff Fieldhack, research director, Counterpoint, “There has been no slowdown in the appetite for Apple within the secondary market. In fact, over the past year, it has increased compared to its competitors.”
Apple’s share in the global market for new smartphones was just over 13% in the second half of 2020. Its share in the secondary market, on the other hand, over the same period was stood at 44%.
Fieldhack further said that Apple’s secondary market average selling prices are almost three times higher than the average of all its competitors. “Even with the rollout of 5G by over 150 mobile operators in over 70 countries, the demand and ASPs for Apple’s refurbished LTE portfolio remain elevated. This is helping Apple grow its installed base as many of the Apple buyers in the secondary market are first-time buyers,” said Fieldhack.
Growing demand in India
While the online refurbished market in India is slowly picking pace, it’s the unorganised market where second-hand smartphones thrive. Counterpoint expects more secondary market volumes to move to other areas such as Africa, Japan, India, and Europe. “There are established secondary market companies, with new companies also moving into these regions. There is also an appetite for flagships from premium brands but at mid-tier pricing,” said Glen Cardoza, senior research analyst at Counterpoint.