The second-hand market for smartphones has surged in recent years, borne up by lower prices as well as interest in eco-friendly consumption even as some still fear buying a dud.
The success of refurbished phones is a reminder that flashy new gadgets and cutting-edge capabilities, on show this week at Barcelona’s Mobile World Congress (MWC) telecoms trade fair, are not the only engines of the sector.
Around 46 percent of Europeans have already taken the plunge by buying a second-hand device, marketplace Recommerce found in a survey last year commissioned from pollsters Kantar.
Photo: AFP
But the picture varies around the world, as “mature markets in Europe and parts of North America tend to show higher refurbished uptake,” according to a report from analysis firm Mordor Intelligence, which estimates the second-hand market at 10 percent of worldwide phone purchases annually.
Western consumers “are increasingly aligning with circular-economy principles, prioritizing lifecycle extension and reducing electronic waste” as environmental concerns permeate public debate, the authors wrote.
PRICE AND PLANET
Price remains the killer argument for refurbished phones, with second-hand models sometimes half as expensive as a factory-fresh alternative, attracting consumers who have seen purchasing power ground down by inflation.
Almost twice as many respondents to Recommerce’s survey named price as a factor in their choice, compared to the environment.
“It gives citizens and consumers yet another reason to not go out and buy a product that’s too expensive,” said Thibaud Hug de Larauze, co-founder of refurbished tech marketplace Back Market.
Although smartphone sales remain dominated by new devices from hardware giants such as Apple and Samsung, his company achieved profitability for the first time in its 12-year history last year.
Meanwhile the environmental impact of buying a second-hand phone can be significantly lower, avoiding the use of new materials and the carbon emissions that go into producing each device.
“A refurbished phone can have an 87-percent lower climate impact compared to a new phone,” said Steven Moore, head of climate action at the GSMA global mobile operators’ group.
NT$100 BILLION MARKET?
But such arguments do little to allay the fears of prospective buyers who fear they could find they’ve handed over hundreds for a lemon.
“There’s still a perception that the phones will break sooner,” Moore said.
Hug de Larauze said refurbishing companies are trying to “counter the skepticism,” including with offers for “premium” devices with a like-new finish and fresh batteries — now accounting for around 20 percent of Back Market’s sales.
Recommerce chief Augustin Becquet said the company had turned to “transparency” to win over consumers, offering an externally audited quality label and warranties for one or two years.
“Warranties are critical,” said Claire Gillies, head of BT Group’s consumer division, at the Mobile World Congress (MWC) in Barcelona.
Buyers want “standardisation... some understanding of what quality I’ll be getting,” she added.
Forecast to be worth around US$70 billion this year, the refurbished device market is set to grow to US$100 billion in five years’ time, according to Mordor Intelligence.
But like many other tech fields, it could fall victim to the geopolitical and trade tensions that have re-emerged since US President Donald Trump returned to the White House.
“It’s definitely not helping... it’s a shame that things are being slowed when we really need things to be accelerated,” said the GSMA’s Moore.
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