According to a new report issued by Counterpoint Corporation, which specializes in market research, that nearly half of the sales of refurbished smartphones around the world were the share of the American company Apple and its famous iPhone in its various versions.
Apple's sales of refurbished iPhones increased by 16 percent year-on-year during 2022, but at the same time it contradicts other reports that show a decline in new smartphone shipments.
In general, the refurbished smartphone market witnessed a growth of 5 percent on an annual basis globally, and this percentage was likely to increase had it not been for the faltering sales in the Chinese market, which alone witnessed a decline of up to 17 percent due to the resurgence of the Corona virus epidemic in some cities and the adoption of the government. Stringent policies to reduce injuries, according to the Counter Point report .
However, the decline in sales of refurbished smartphones in China helped India take the top spot with an annual growth rate of 19 percent, followed by Latin American countries with an annual growth rate of 18 percent.
The report indicated that the market share of Apple alone in sales of refurbished smartphones amounted to more than 49 percent in 2022, which makes it the fastest growing brand in this sector globally, and that percentage increased to more than 44 percent in 2021.
The increasing demand for refurbished iPhones negatively affects sales of new iPhone versions and revenues from Apple services in many countries of the world. Nevertheless, the company has succeeded in attracting consumers to buy refurbished iPhone versions even in areas where it is difficult to obtain new versions of the iPhone, according to (Counter Point). ).
For a long time, Apple has been offering refurbished versions of the iPhone through its official sales outlets, whether through its Apple.com website or official stores, and even at authorized agents, and it also offers a full year warranty on the device and changing the external structure to a new one with continued support with system updates. Even for older versions. Taking into account the cheaper price of refurbished versions compared to new versions, many consumers prefer the first option.
Unlike Apple, Samsung sales witnessed a decline from 28 percent in 2021 to 26 percent in 2022, and the report attributes the transfer of a small segment of Android consumers to the iPhone as one of the reasons for the decline in Samsung sales of refurbished phones, and the report expects the matter to continue at the same pace this year. next.
It is also noted that the demand for versions supporting 5G networks is increasing in the global market, as its sales accounted for about 13 percent of sales.
“There are still potential opportunities in the refurbished phone business, but limited supply affects most emerging markets, such as: Latin America, Southeast Asia, India and Africa,” said (Glenn Cardoza), senior analyst at (Counterpoint). He added that “the revenues of refurbished phones from developed markets, such as: the United States, Europe, and Japan, have witnessed a decline due to the increasing demand for them internally.”
It is worth noting that refurbished phones are defective phones that were collected from the market shortly after they were sold in order to repair them. After repair, the battery and the external structure are changed, then they are re-released at a lower price with a valid warranty in a new purchase box.