Last September, Apple commercially launched its new line of iPhone devices. Although the general rule is that the American company reaches its peak sales during the holiday season, the start of the new series does not seem to have been particularly impressive.
Apple analysts estimate that pre-orders in the first weekend of the launch were down nearly 13% compared to first-weekend sales for last year’s iPhone 15. Additionally, from January to March, Apple reported 10% drop on an annual basis in telephone revenues.
Apple is facing a new trend
In the 17 years since the company’s original mobile phone model was released, the launch of a new iPhone has gone from being the tech event of the year to little more than a software update wrapped in cellophane, notes Business Insider.
To opposite of the above, a new trend is observed in the market: the demand for “old” iPhones. The global market for refurbished smartphones grew by 5% annually from 2021 to 2022, according to Counterpoint Research. In fact, Apple devices accounted for half of the used device market in 2022.
Instead, it made up just 1/4 of new smartphones shipped globally at the end of 2023, according to market intelligence firm International Data Corporation.
In Europe, around 43% of people own a refurbished phone, according to a 2023 survey conducted by Vodafone and Recommerce Group, a company that markets used technology products. Zion Market Research estimates that in the US, the used phone market could grow by about 13% annually through 2032, Business Insider reports.
The… refurbished gold mine
At the same time the sellers of refurbished technological products believe that this is the moment they should take advantage of. France-based Back Market has raised more than $1 billion and is on track to become profitable in Europe for the first time this year, says CEO Thibaud Hug de Larauze.
During a recent press conference, he revealed that the company had served 15 million customers and sold 30 million products, indicating that Back Market has had a good number of repeat buyers over the past 10 years. Phones make up the majority of Back Market’s sales, but the company also sells smartwatches, headphones, laptops and video game consoles, among other things. Refurbished technology products are now among the five most popular used categories bought on eBay.
Hug de Larauze is extremely optimistic about the future of devices second-hand: He predicts that within 10 years, 90% of adults could buy refurbished products or choose to repair their devices instead of buying new ones. “People are starting to realize that there’s not as much innovation in the next product,” he tells Business Insider.
Refurbished phone dealers also find creative ways to counter years of marketing capitalizing on “newphoria,” the sense of excitement people feel when they unbox a new tech gadget.
Back Market satirized the idea in an ad last year, “showing” people eager to pick up the new product but scoffing at the minor changes to buttons and charging ports.
The company also recently ran a promotion of… mystery. For $249 or 299 euros, customers could buy a refurbished iPhone or Android without knowing what model they would get. The phones sold out in two hours in France and in a few days in the US, says Hug de Larauze. Back Market did not announce the total number of phones sold during the promotion, but Hug de Larauze said sales exceeded the company’s expectations. It showed that there are buyers who care much more about the price of the phone than its model.
Legislative changes
Perhaps the biggest obstacle for some people to buy used phones is the manufacturers themselves. Through a practice called “part pairing,” in which a part can only work if a company’s software recognizes and approves it, tech companies have made it harder to repair the phone or have third-party shops do it.
As Business Insider reports, if you replace a cracked iPhone screen at a local store, Face ID may never work again. This is changing, albeit slowly, the publication reports. In April, Apple announced that it would begin making changes that would allow some used genuine Apple parts to fit into other iPhones. The reason this was not the case before is the phone’s security, according to the manufacturer…
In March, shortly before Apple’s announcement, the State of Oregon passed a law banning component pairing, becoming the first US state to do so. And while it only applies to devices manufactured after January 1, 2025, it’s a significant change in how manufacturers get their future tech products patched. More lawmakers are tackling repair barriers, and the European Union passed laws this year designed to make it easier for people to get their products repaired by manufacturers or third-party repairers rather than being forced to replace them.
SOURCE: ot.gr
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