About half of refurbished smartphones sold globally were iPhones, with Apple’s sales in this category growing 16% year-over-year in 2022. The new numbers arrived by Counterpoint Research, presenting a stark contrast to the continuing declines. in smartphone shipments.
The global secondary smartphone market grew by 5% year-on-year in 2022, the market research firm said Monday. The growth would have been even greater if sales of refurbished smartphones in China had not seen a 17% decline, mainly due to the resurgence of COVID-19. and his arrival. The company said its COVID-Zero policies.
However, a slump in secondary smartphone sales in China helped India take the top spot, with 19% year-on-year growth, followed by Latin America with 18% year-on-year growth.
Apple captured more than 49% of the secondary market in 2022, becoming the fastest growing brand in the used and refurbished segments globally. The Cupertino company’s market share has grown from 44% in 2021, according to the research firm.
High demand for refurbished smartphones is affecting sales of new iPhones and Apple’s service revenue in many markets. However, Apple has successfully cracked its growth in the refurbished market and entice people to buy refurbished iPhone models even in places where its new variants are hard to find, Counterpoint said.
Apple has always been selling refurbished iPhone models through its official channels and offers a full one-year warranty on the battery and case to make it attractive to customers. The iPhone maker also has several initiatives focused on sustainability and offers regular software updates even on older models, making it easier for consumers to use refurbished models on their new releases.
The growth specifically seen in countries including India was also due to Apple’s success in the revamped market.
“Apple is a very ambitious brand in India, and refurbished iPhones give these ambitious users a lower entry point into the Apple ecosystem,” Tarun Pathak, director of research at Counterpoint, told TechCrunch.
He added that the South Asian country is still small, about 15% of the global refurbished smartphone market.
Unlike Apple, Samsung has seen its secondary market drop from 28% in 2021 to 26% in 2022, per Counterpoint. A small percentage of Android consumers switched to iOS in the year, which affected sales of refurbished Samsung. The research firm said the trend will continue into 2023.
Image credits: Counterpoint Research
With the increasing demand for 5G phones in global markets, 5G accounted for 13% of global refurbished smartphone sales in 2022.
“Dealing potential in refurbished smartphones remains high, but limited supply affects most emerging markets such as Latin America, Southeast Asia, India and Africa,” said Glenn Cardoza, senior analyst at Counterpoint, in a prepared statement. “Imports have decreased from mature markets such as the United States, Europe and Japan as they have to meet their own demand.”
Counterpoint indicated that a large proportion of consumers prefer to buy refurbished premium and flagship smartphones in 2022, which has led to the growth of average selling prices in the secondary market.
However, the significant growth in the prices of new models – not only in the case of the iPhone but in general – seems to be largely pushing customers to refurbished smartphones. Macroeconomic factors affecting business and jobs make the revamped smartphone market a great place for customers all over the world.
The company expects that increasing additional trade and shifting towards premium smartphones may help increase stocks of low quality used smartphones in 2023. It is also likely to boost finished activities such as dismantling, logistics, warehousing, recycling and e-waste disposal. Renewal of smartphone sales this year.