All industries from software to agriculture have influenced COVID-19. Therefore, this is no exception for the smartphone industry. But, worldwide smartphone shipments are down by 8%. Additionally, the Refurbished Smartphones market also fell 9% in 2020, the counterpoint research says.
The refurbished market for smartphones is regarded as a secondary market. They are varieties of old devices, but they are tested, reconfigured, and resold for repairs. Half of the New Mobile warranty is included and the report states that this analysis only includes such devices.
In 2020, Global Market for Refurbished Smartphones Dropped 9%
It reports that in 2020 the worldwide refurbished mobile industry declined by 9%. Among the lot, with an individual decline of 24% and 20%, LATAM (Latin America) and India seem to be the worst impacted. China has also undergone an 8 percent growth decline over 2019.
China is also getting worst due to some other factors such as the US-China trade war and tensions with Hong Kong. According to Researchers, many of the resellers probably avoid China’s fear of Chinese Govt regulation, import duty, and increased replacement component prices.
Moreover, Compared to Half-1 2019 with the Half-1 2020 refurbished market has dropped by a massive 16 percent. In certain regions, lock-downs and economic constraints contributed to a smaller inflow of refurbished devices as the pandemic intensified. Europe, the US, and other countries saw a 14%, 2%, and 10%, respectively, decrease compared with last year.
Thanks to giants like Apple’s iPhone launch cycle, the Second Half gave the industry some breath. Also, Apple’s share in the secondary market rose from 39 percent to 42 percent, according to senior research analyst Glen Cardoza.
In 2020 the black market and the reverse trade in new/old goods also expanded. The ASP (Average Sale Price) of redesigned LTE devices has also seen price changes.
In general, due to the COVID-19 and the predictions that the vaccine rollout will decrease this situation, the majority of countries have faced a decrease in the refurbished smartphone industry this year, which can be expected to revive after COVID-19.