Used phones market is changing due to COVID‑19

Used phones market is changing due to COVID‑19

Has Apple postponed the iPhone 12 release?

The release date of the iPhone 12 would be possibly postponed due to the unstable situation worldwide. Apple has already delayed the iPhone 12 mass production because of the pandemic. While the company is anticipated to launch the new iPhone in September 2020, COVID-19 could affect the scheduled date of the release. Approximately, we won’t be able to check out the new iPhone 12 till October - November 2020.

Pandemic hit the smartphone industry

But here is another thing – the pandemic affected many countries’ economies, people lost their jobs and for many reasons, lots of us won’t live the same as before, for a long time.

The big question is whether people will actually buy that new iPhone, or any other brand new smartphone this year. 

However, people still need to replace their mobile phones. According to the NSYS Group statistics, on average people change their devices every 2 years. Smartphones can be lost, stolen, or lose functionality and cosmetic condition. Based on our forecast, demand for the refurbished phones will grow. 

Changes in Refurbished and Used Mobile Phones Market

For sure, the coronavirus outbreak impacted the world’s top companies, for example, Apple, Xiaomi, Samsung. So, manufacturing of new mobile phones will be slowed down for a while.

And here goes another thing: When people stop buying new smartphones, will it affect the used phone market as well?

Forecast by Eurostat of the new phones market volume in the world

Here is the forecast by Eurostat of the new phone market in the world. The graph shows us that the volume of the new phones will decrease by 0.5 % in general. We connect it with the virus outbreak and temporary economic recession which is expected to end by 2023 – the first year after the COVID-19 with positive growth.

For example, in 2008, during the financial crisis, the decrease was about 10%. So, there are no prerequisites to worry about the market volume. Economics will gradually recover after the coronavirus is over.

Nevertheless, the used phones sector has been growing over the last years worldwide as you can see on the same graph above (2005-2020).

While sales of new cellphones began to fall in 2020, sales of used phones have remained stable and even grown in some regions. It is clearly seen on the NSYS Group graph.

Devices processed by clients in Q1 2019 and Q1 2020

According to our statistics, the number of processed devices in Q1 2020 increased by 122% compared with Q1 2019.

We suppose that the pandemic has changed people's patterns of consumption and, therefore, increased demand for reconditioned iPhones / Android-based phones. Also, people began to sell devices through buyback and trade-in programs more often than a year ago.

People are gradually switching from brand new phones to refurbished ones

Second-hand mobile market will grow

And here is the actual opportunity for the pre-owned devices. As the market of new devices is recovering slowly, it gives consumers time to get used to the culture of using refurbished phones even more.

Moreover, many people no longer see the point in buying a new smartphone for $1000 every year, even though new smartphones have more improved features.

A new trend in the mobile phone market is buying a refurbished phone with a good level of customer service and long-term warranty at a lower price.

If you are looking at how to increase the profitability of your business and bring precision to the process of used devices diagnostics

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