Second hand phone market grows 10%
By Jeph Ajobaju, Chief Copy Editor
Only 6.41 per cent of Nigerians use new Apple smartphones, because they are very expensive, according to a report by Apple in 2020.
It is not surprising, therefore, that another report by Counterpoint Technology Market Research (CTMR) shows the number of Nigerians who bought second hand iPhones and Samsung rose 10 per cent in 2021.
CTMR Global Refurbished Smartphone Tracker recorded a surge in secondary smartphone demand and supply in 2021, growing 15 per cent in volume.
New flagship smartphone prices remain expensive, so a large share of consumers are buying refurbished models of popular brands like Apple and Samsung. Apple is the most bought second hand phone in the market.
“Refurbished smartphones are a part of overall pre-owned devices which re-enter the system through various routes.
“Trade-ins are the fastest-growing source for such pre-owned smartphones, the volume of which grew more than 10 per cent globally in 2021,” said senior analyst Glen Cardoza.
“We are seeing a Year-on-Year increase in volumes among refurbished players in developing markets like China, India, Latin America, Southeast Asia, and Africa.
“These markets will grow more as they have many unorganised businesses and a large rural demographic yet to be captured. Average selling prices of refurbished smartphones increased marginally as 4G devices still retained value.”
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Latin America, India lead second hand market
CTMR – which specialises in products in the technology, media, and telecom industry – said Latin America (29 per cent) and India (25 per cent) lead the highest growth rates in the second hand smartphone market.
The United States, China, and Europe showed strong growth in volumes from 2020, according to the report, published by The PUNCH.
Research Director Jeff Fieldhack added that “the India and LATAM [Latin America] markets saw the highest growth rates in 2021 and also have the highest future potential growth over the next few years.
“There were supply shortages in the secondary market in 2020 due to COVID-19 lockdowns and other supply chain disruptions. But the market roared back in 2021.
“There are large consumer appetites for flagships and the latest flagships have the highest point-of-sale prices in India and LATAM.
“The secondary market offers consumers the ability to access these devices at ASPs 60 per cent lower than new versions. The improved durability and high quality of flagships make them very appealing in the secondary market.”