A few years ago, many thought it impossible for the refurbished phones market to grow to the size that it has today. As early as 2013, there were rumors about the emerging interest in the used phones. But there was a high percentage of doubt about the refurbished smartphone market then, and people used to consider it a myth back in those years!
In developed countries such as the United Kingdom, USA, France, Germany, and Italy, most of the customer base is tech-savvy and prefers to possess advanced and high-tech equipment. Because of the short upgrade rotation of several cellphones, the people in these countries generally are not willing to spend much on new mobile phones. Due to this, a majority of the population is shifting their interests towards refurbished and used phones with the features they desire and also in pocket-friendly pricing. As a result, the refurbished and used market is attracting a significant set of the population from both developed and developing countries.
Why you should invest in a refurbishment business? If we talk about the electronics repair, cellphone repair or the computer repair industry, these are indeed very large industries and are blooming very fast in almost all parts of the world. As a matter of fact, there is no organization, community or business left that can survive without these leading industries, which is the main purpose of success for the people investing in cellphone repair business or computer repair business.
Statistics have shown that in the United States of America alone, there are about 57,629 licensed and registered electronic and computer repair services related businesses responsible for employing about 141,369 employees and the industry collects a substantial sum of $19bn annually. The upcoming five-year forecast from IDC reports that it would continue to grow at a year-on-year rate of 10% through 2022, which is a modest estimate at best.
If you plan to enter this massive market, you must have a partner to help you at every stage. For this very reason, RepairDesk is here, it is an all-in-one solution for the cellphone and computer repair industry that aims to grow your business with all the first-class services at your repair store. Get a 14-day free trial of an industry leading POS software and see it all by yourself.
When getting into the factors of this surprising growth in the refurbishment business, the IDC highlights the rising prices of new phones, as the most prominent reason for the used phone market’s recent growth. They report;
“Increased smartphone prices at the high end of the spectrum has led to many consumers holding on to their phones longer than expected.”
In other words, this also means that upgrading slightly used phones and selling them at a cheaper rate – i.e., refurbished smartphones – have become the more appealing option to people these days. For instance, if we buy an iPhone XR. It will cost you $750 to buy a brand-new iPhone XR, and if you end up keeping that same phone for four years, the average yearly cost comes out to $187.50, that is a BIG portion of the money to spend on just a phone!
The two most dominant brands than any other smartphone provider in the refurbishment market, are Apple and Samsung. They offered a new vision to the cellphone industry and these two brands combined hold close to three-fourths of the refurbished smartphone market, with Apple leading by a significant margin. In terms of growth and revenue, the supremacy grows further, as the two smartphone giants control more than 80% of the profits in the refurbished smartphone market.
The above stats and discussion show that indeed, the refurbished phone market is growing by leaps and bounds. Buying used gives both companies and their consumers greater financial flexibility and creates awareness. There’s no reason why this trend shouldn’t continue as it presents a more feasible way of life and helps you think about other ways or areas to spend your earning.
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