Upgrades Fueling Second Hand Smartphone Gross sales Growth, Says Gartner

Upgrades Fueling Second Hand Smartphone Sales Boom, Says Gartner

What quantity of smartphone house owners improve simply to get their arms on the newest, shiny new hardware? In response to a brand new survey of U.S. and Germany shoppers, by analyst Gartner, the determine is 60 per cent. The survey polled some 5,600 shoppers within the two nations in June final yr.

However whereas smartphone upgraders are serving to to drive the higher finish of the smartphone market, and probably placing cash into Cupertino’s coffers (given Apple’s give attention to the premium system phase), they’re additionally having a secondary impact on the cellular market as an entire by growing the variety of second-hand units in circulation.

Gartner is predicting the worldwide marketplace for refurbished telephones which might be bought to finish customers will develop to one hundred twenty million models by 2017, up from fifty six million final yr. It places an equal wholesale income determine of round $14 billion on the dimensions of the market in two years, vs $7 billion final yr.

It discovered only a fraction (7 per cent) of upgraders’ previous smartphones are despatched to official recycling packages. The bulk (sixty four per cent) get a brand new lease of life by way of the second hand market — with the most important portion (forty one per cent) being traded in or bought privately, and round 1 / 4 (23 per cent) handed right down to others.

Backside line: second hand, hand-me-down smartphones might be more and more cannibalizing the marketplace for new (in all probability mid-vary) handsets — as excessive finish used units supply mid market consumers a beautiful various that additionally meets their finances. Why purchase a brand new however comparatively uninteresting mid vary handset when you’ll be able to have a premium handset that’s perhaps solely a yr or so previous?

“This rise in smartphone reuse will influence not solely the gross sales of latest models, but in addition the income streams of all these concerned within the smartphone provide chain,” notes analyst Meike Escherich in a press release. “Stakeholders which are already collaborating in take-again or commerce-in packages have to have a technique for turning used units right into a constructive asset.

“Others — notably excessive-finish telephone unique gear producers — have to take a better take a look at this market as a way to consider the influence these second-hand units could have on their market positions and income streams.”

Gartner is predicting the rising variety of privately bought telephones may also drive elevated competitors within the take-again/commerce-in market, and require refurbishers and comms providers suppliers to up their recreation in terms of advertising their packages and providing new incentives for telephone house owners to dump their previous fashions.