Apple Captures Almost 50 Per Cent Of Refurbished Smartphone Market Globally
Apple has captured almost half of the global refurbished smartphone market, courtesy of the growing demand for refurbished smartphones across most geographies, says a new report.
Apple has captured almost half of the global refurbished smartphone market, courtesy of the growing demand for refurbished smartphones across most geographies, says a new report. Apple currently has 49 per cent of the market share, followed by rival Samsung which has 26 per cent market share in the worldwide refurbished smartphone market, according to market intelligence firm Counterpoint Research.
Apple’s global volumes grew 16 per cent YoY in 2022, taking its secondary market share to over 49 per cent. Apple is the fastest-growing brand in the used and refurbished sectors globally. However, the secondary market demand is affecting new iPhone sales and service revenues in many markets. Apple is a major contributor to the increasing refurbished share as compared to the new smartphone shipments in the main markets.
The supply crunch is mainly felt for iPhones in refurbished markets.
Samsung’s share declined to 26 per cent in 2022 from 28 per cent in 2021. Within the secondary market, there was a small percentage shift of Android consumers to iOS in 2022, which affected Samsung refurbished sales. This trend is likely to continue this year.
“The global refurbished markets are going through transitions. Supply remains constrained as consumers are holding on to smartphones for longer. At the same time, demand for 5G is increasing, especially in mature markets like the US, Europe and Japan. In 2022, 5G made up 13 per cent of global refurbished sales. The business potential of dealing in refurbished smartphones remains high, but the limited supply is affecting most emerging markets like LATAM, Southeast Asia, India and Africa.
"Imports from mature markets like the US, Europe and Japan have reduced as they have to cater to their own demand. We are looking at a transition where most markets are growing their own repair and refurbishment ecosystems domestically. This is changing the trade routes and reducing China’s imports and exports. Domestic players everywhere are focusing on expansion, partnerships and additional supply avenues," Glen Cardoza, Senior Analyst at Counterpoint Research, said in a statement.
Smartphone trends to expect in 2023
A lot of the changes in the secondary markets in 2022 will spill into 2023. 5G smartphone share will increase substantially and 4G smartphones may lose their value at a faster rate in 2023. According to the market research firm, the increased trade-ins and shift towards premium smartphones may bring about a situation where the inventory of low-grade used smartphones may grow significantly.
End-of-life activities like disassembly, logistics, warehousing, recycling and e-waste disposal should see additional opportunities. IT asset disposition (ITAD) businesses could see a better outlook, too.
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