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Refurbished Smartphones Booming Insurance Companies Contributing To Growth

The decision by Boost and JB Hi Fi to get into the refurbished smartphone market appears to have been a smart move with new research showing that demand for second hand smartphones is booming around the world.

Refurbished devices are also being used by Insurance Companies to replace lost or stolen smartphones instead of offering consumers a new model.

Research from analyst firm Counterpoint claims the refurbished smartphone market grew by 15% in 2021 and is tipped to grow further this year.

Credit: MacRumors

Key to the market is an increase in quality checks and warranty options, according to Counterpoint with consumers liking what they get when buying a refurbished product from a known retailer.

Growing momentum for the ‘Right to Repair movement’ has also led to more refurbishment players in the European, US and Japanese markets.

In some markets demand grew by up to 29%.

“Refurbished smartphones are a part of overall pre-owned devices which re-enter the system through various routes,” said Senior Analyst Glen Cardoza. “Trade-ins are the fastest growing source for such pre-owned smartphones, the volume of which grew more than 10% globally in 2021. We are seeing a YoY increase in volumes among refurb players.

The ASPs (average selling prices) of refurbished smartphones increased marginally as 4G devices still retained value.”

Research Director Jeff Fieldhack that in some markets “New Apple and Samsung flagship sales increased, which in turn increased the volumes of collected devices at carriers and other collection channels. On the consumption side, the use of CPO (certified pre-owned) devices as insurance replacements increased during 2021”.

Fieldhack claims that sustainability may well play a large factor into a decision to pick up a refurbished smartphone, and you don’t have to be an activist for that sort of thing to think it’s generally a good idea to reused things where possible.

However, another contributing factor may well be the increasing cost of flagship phones particularly from Apple, and the fact that a general slowdown in hardware innovation means there isn’t as much to tell phone generations apart as there once was.



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