As we all know, COVID-19 has impacted every sector from Technology to Agriculture. Hence, the smartphone industry is no exemption to this. For instance, the Global smartphone shipments have declined by 8%. Accordingly, a counterpoint research now says that the Refurbished smartphone market also dropped in 2020.
The refurbished smartphone market is considered a secondary market. Although they are sort of old devices, they are scrutinized for repairs, repacked, and re-sold. Some even include half of the New Smartphone warranty(which is the Primary market). And the report says it considers only such devices for the analysis.
It mentions that the global refurbished smartphone market dropped by 9% YoY in 2020. Among the lot, LATAM(Latin America) and India seems to be the most affected with an individual drop of 24% and 20% respectively. China also faced the heat with an 8% drop in growth compared to 2019.
Reasons like the US-China trade war and tensions with Hong Kong are reportedly the reasons for this. Apparently, many resellers avoid china fearing scrutiny by the Chinese Govt, import duties, higher replacement part costs according to Research Director Jeff Fieldhack.
EDITOR’S PICK: IDC: Over 225 million used smartphones were shipped in 2020
The refurbished market’s H1 2020 period saw a huge 16% drop compared to H1 2019. And as the pandemic worsened, Lockdowns and economic restrictions in the majority of areas meant a lower inflow of refurbished devices. Compared to last year, Europe, US, and others saw a 14%, 2%, and 10% drop respectively.
That said, the second half gave a bit of breath to the industry thanks to giants like Apple’s iPhone launch cycle. Precisely, according to Senior Research Analyst Glen Cardoza, Apple’s share in the secondary market grew from 39% to 42%.
The Black Market and Recommerce(reverse commerce- selling of old/new products) also grew in 2020. Add to this, the ASP(Average Selling Price) of refurbished LTE devices saw a rise in Price.
Overall, the majority of countries mainly faced a decline in the refurbished smartphone market due to the COVID-19 and as it is expected to subside with vaccine rollout, we can expect a rebound this year.
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