According to research firm IDC, the refurbished smartphone market is booming, with sales expected to reach 413 million units by 2026.
$99 billion red balloons
That’s a $99 billion market, so how can Apple take a chunk out of it? (iPhones account for around 82% of the second hand device market, according to CCS Insights and hold value for longer even in that market.)
Apple already does so, to an extent.
The company’s refurbished store is a great place to visit if you’re in the market for a new Apple device. While it is more expensive than other refurbished sales outlets, what you get in exchange is Apple-tested/repaired hardware, a manufacturer’s guarantee, and original packaging.
Much of the time, other outlets offer no guarantee, may replace cables or chargers (if provided) with non-Apple products, and the packaging can be a chunk of bubble wrap.
With Apple refurbs you pay more, but get more. Though do bear in mind that the company doesn’t want to dramatically undercut its own prices, and nor does it want to dent values in the second user markets.
Towards the circularity
At the same time, Apple does want to exploit any opportunity generated by its “Reuse and Recycle” trade-in scheme.
That means recycling products that are too old to resurrect and resell — and selling those that still have value. IDC believes the boom in refurbished smartphone sales is driven by trade-in programs of this kind. But there’s another motivation.
Sustainability
What is sustainability in smartphones? Apple’s environmental focus makes it clear: It means using more recycled components; reducing the environmental consequences of ownership; lowering energy costs; and creating resilient devices that don’t usually fall apart after 12 months.
In 2018, Apple Vice President for Environment, Policy and Social Initiatives Lisa Jackson was explicit about this when she said: “Because they last longer, you can keep using them. And keeping using them is…
2023-02-11 11:00:03
Original from www.computerworld.com
Apple recently released its second quarter earnings, revealing that its second-user smartphone business is booming. This reflects the maturity of the used phone market and Apple’s ability to capitalize on this growing sector. The success of this market is largely attributed to the impressive growth in device trade-in services and Apple’s own Trade Up programs.
Most consumers now consider buying a used device instead of a new one due to the lower cost and improved performance. As such, Apple’s investment in its trade-in services and upgrade program has allowed it to capture a more consumer-friendly segment of the used phone market. The Trade Up program allows customers to trade in an eligible device in exchange for a credit that can be used towards purchasing an iPhone. This innovative program has undoubtedly had an impact on Apple’s impressive second quarter earnings.
Apple has also seen success in its Refurbished Product program. The program offers certified pre-owned devices at significantly lower prices. The devices are tested and certified to be fully operational with background checks and warranty, offering customers the same premium experience as buying a new device.
The success of Apple’s second-user smartphone business is indicative of how the used phone market has evolved. As technology becomes increasingly accessible, more people are looking for alternatives for acquiring the latest devices. Apple’s ability to capitalize on the used phone market is paying off and demonstrates how the company is adapting to growth in this sector.