According to a report from Counterpoint Research, the global refurbished smartphone market saw healthy growth across most regions in the second half (H2) of 2020.
This has helped the market to recover from the slump in the first half (first 6 months of 2020) with a modest increase of 4% in 2020 compared to the 2019 count. Counterpoint is expected to move higher next year. 2021.
There was a sharp deceleration in the first half of 2020, mainly due to Covid-19. As a result, the refurbished smartphone market has seen an increase in supply and demand in 2020.
“While smartphone supply in the secondary market was constrained in the first half of 2020, both demand and supply increased strongly in the second half of 2020,” said senior research analyst Glen Cardoza. When the market opened, most player refurbished devices saw an increase in resale and transaction volumes. “
According to Cardoza, volume increased year-on-year (YoY) across all regions in H2 2020. While some markets like LATAM and Southeast Asia need time to recover, others like the US , Europe, India and Africa rose again. and try to increase supply and distribution related activities.
Hungry for Apple
Apple has gained a significant share of the secondary market.
“There has been no decline in appetite for Apple in the secondary market,” said Research Director Jeff Fieldhack. In fact, over the past year, it has grown relative to its competitors.”
Apple’s share of the global new smartphone market was over 13% in H2 2020. Apple’s share in the secondary market over the same period was over 44%.
“Additionally, Apple’s secondary market ASP (average selling price) is almost three times higher than the average for all competitors. Even as more than 150 mobile operators in more than 70 countries roll out 5G, demand and ASPs for Apple’s refurbished LTE portfolio are still high. This is helping Apple grow its install base as many of the people buying Apple in the secondary market are first-time buyers,” said Fieldhack.
In regions like Europe, the increase in demand was driven by complementary trade offers and a focused approach to circular economy initiatives. In regions like India and Africa, increasing rates of new business and improvements in technology and domestic repair capabilities are supporting demand.
Cardoza added, “We expect more secondary market volume to move to other regions such as Africa, Japan, India and Europe. There are established secondary market companies, and new ones are also moving into these areas. There is also a craving for flagships from premium brands but at mid-range prices. “