EXCLUSIVE: Apple Whinges Over Refurbished iPhone Sales, Wants Old iPhones, ‘Dumped In The Ocean’
Apple is upset at the amount of refurbished iPhones being sold in Australia, with one industry executive pulled up during a recent visit to Apple headquarters in the US.
The senior executive, who at this stage does not want to be named, claims he was told by a senior Apple iPhone executive that Apple would be happy “if all old iPhones were dumped in the ocean in Australia”.
Currently, several organisations are selling refurbished iPhones in Australia, a move Apple is not happy with, especially as consumers are gravitating to value phones and refurbished smartphones over a new premium iPhone.
A visit to Oz Mobiles reveals that consumers can buy an iPhone 13 Max Pro for $1,339, while at Harvey Norman the same model phone is retailing for $2,499 with 1Tb of memory.
The global refurbished and used mobile phones market size was valued at $52 billion in 2021, and is projected to reach $145.9 billion by 2031, growing at a CAGR of 11.2% from 2022 to 2031.
Also selling refurbished are Coles and Boost Mobile.
Cost-conscious shoppers are now buying refurbished Apple iPhones at the checkout at Coles supermarkets and it appears Apple’s local management have complained to their global bosses that the popularity of refurbished iPhones is hurting their local operation.
Independent research commissioned by Boost Mobile quizzed 1000 Australians and found parents with children aged 10 to 17, about three in four had heard about refurbished phones.
And of those parents, 44 per cent said they only wanted to spend $300 or less on a brand-new phone for their child.
A visit to the Product Review website reveals that most people are happy with the service Boost and others are offering with refurbished smartphones.
Boost Mobile’s executives said when the service was launched that it is a cost-effective option for customers who are prepared to forgo having the latest and most expensive device.
“If you have a family of three kids and they all want the new iPhone, a brand-new iPhone will set them back a significant amount.
“They are a great product and a great price and almost as good as a new one and it’s now convenient.”
The only problem is that Apple makes no money out of a resale, while also missing out on a new iPhone sale.
This month, JB Hi-Fi and Samsung reported record trade-ins of older model phones, including both iPhones and older Samsung Galaxy smartphones on the new Samsung Galaxy S23 range that was launched last week.
Retailers are tipping the new norm is for consumers to trade-in an old device due to carriers removing hardware rebates, and that when Apple launch their next range of devices they are anticipating a surge in traded models.
These models are then being sold to Companies who refurbish devices, with several refurbish Companies in Asia telling ChannelNews that they often print new packaging identical to the original packaging as part of the refurbished offering.
The sale of refurbished iPhones was launched last year in Coles stores in NSW, WA, Tasmania, NT and the ACT, before being rolled out in Queensland and Victoria late in 2022.
Consumers get a $10 Boost SIM card with the deal.
Telco comparison website WhistleOut spokesman Kenny McGilvary says more Australians are willing to purchase mobile phones outright rather than sign up to a contract.
“Choosing a refurbished phone is a great value alternative to buying a new handset, whether for yourself or for the kids,” he says.
“Refurbished handsets give Australians more choice when it comes to picking a mobile phone, and the opportunity to make big savings while still getting a good device.”
