In a nutshell: Though Samsung not too long ago moved forward of Apple with regards to world smartphone shipments, one space the place Cupertino dominates is the refurbished telephones market. About half of the refurbed handsets offered globally final yr had been iPhones, marking a 16% year-on-year improve.
In keeping with Counterpoint Analysis’s information, the worldwide financial disaster noticed demand for cheaper, refurbished smartphones develop 5% final yr, with India (+19%) and Latin America (+18%) main the way in which. Whereas refurbed telephone gross sales elevated in 2022, shipments of recent units fell -11.3%.
The worldwide determine for refurb gross sales would have been even increased had been it not for the -17% decline in gross sales in China attributable to rising Covid-19 instances and the nation’s excessive Covid-Zero insurance policies that impacted companies and demand.
Samsung might need edged previous Apple with regards to world smartphone shipments, however iPhones had been dominant within the refurbished market final yr. Their world volumes elevated 16% YoY, taking Apple’s market share to 49%. Samsung, in the meantime, noticed its share lower from 28% to 26%. As such, there was a slight shift of Android customers to iOS in 2022, a development Counterpoint believes will proceed.
The elevated demand for refurbished iPhones is affecting gross sales of recent handsets and Apple’s service income in lots of markets. However the reputation of refurbed iPhones means persons are shopping for them even in locations the place new variants are laborious to search out.
Most customers shopping for refurbished smartphones opted for flagship or premium fashions, pushing up common promoting costs for the secondary market.
It is attention-grabbing to see that the transfer to 5G can be being felt within the refurbished market, with 5G-capable handsets making up 13% of world refurb gross sales final yr.
Apple sells refurbished iPhones by way of its on-line retailer for just a few hundred {dollars} lower than their common worth. The corporate provides the identical one-year guarantee that comes with brand-new telephones, all manuals and equipment, a brand new battery, a brand new outer shell, and, if required, newly changed elements. Samsung additionally sells refurbs on-line.
A component that also places individuals off shopping for refurbished telephones is the worry that they may have an undiagnosed fault, however belief ranges are rising. With new fashions turning into dearer, trade-in ranges increased than ever, and other people cautious of constructing massive purchases within the present financial local weather, the refurb market is predicted to continue to grow. The one factor slowing the development down is the truth that individuals have a tendency to carry onto their new telephones for longer, not eager to spend one other $1,000+ on the latest improve.
