Tech

Refurbished Phone Market Grows 4% in 2020

Some of the devices returned due to errors can be overhauled by the manufacturers and re-released. In 2020, the market for these phones has grown significantly with the impact of the coronavirus.

There is a system that is becoming more and more widespread in the world and allows users to spend less money: Renewing the broken device and selling it cheaper. If the manufacturers can repair the broken devices and bring them to a problem-free level, they can sell these devices at a lower price than the normal price.

The renewed smartphone market consisting of these phones experienced a healthy increase in many parts of the world in 2020. Compensating for the decline experienced in the first half of the year Compared to 2019, 4% growth was achieved.

Growth is expected to continue

used phone market

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The refurbished phone market, as experienced in every sector, experienced a slight decline in the first half of 2020 due to the COVID-19 pandemic. However, the situation recovered greatly in the second half and left its place to growth. Stock analyst Glen Cardoza He used the following statements about the course of the market:

“While the supply of smartphones in the secondary market was limited in the first half of 2020, there was a sharp increase in both demand and supply in the second half of 2020. When markets opened, most replacements saw an increase in resale volumes and swaps. Year-over-year growth was achieved in terms of transaction volume in all regions. While some markets such as Latin America and Southeast Asia take time to recover in the second half of 2020; Other regions such as the US, Europe, India and Africa rebounded fast and sought to increase activities related to procurement and distribution.”

An approach that focuses on circular economy initiatives fuels demand in developed regions like Europe. In contrast, developing regions such as India and Africa are growing at a higher rate in areas such as domestic technology and repair. Cardoza explains the possible growth in these regions with these words:

“China is slowly becoming a more difficult market for the secondary market. There is still high demand, but the costs of parts have increased. The Sino-US trade war has also fueled the atmosphere, making many buyers more conservative. We expect more secondary market volume to move to other regions such as Africa, Japan, India and Europe. Established secondary market companies exist in these regions and new companies are relocating to these regions. There is also a great demand for the flagships of expensive brands at moderate prices.

Source :
https://www.counterpointresearch.com/global-refurbished-smartphone-market-2020-higher-growth-expected-2021/