The latest iPhone release, the iPhone 16, has seen a lukewarm reception, with preorder sales dropping nearly 13% compared to the iPhone 15. This decline in enthusiasm for new models comes as Apple reported a 10% year-over-year decrease in phone revenue earlier this year. Given this trend, many consumers are considering a refurbished iPhone as a more cost-effective alternative. iPhone launches used to be a big deal, but now many see them as just small upgrades instead of major innovations.
In contrast, the market for refurbished smartphones is experiencing growth. According to Counterpoint Research, as reported by Business Insider, this segment grew by 5% from 2021 to 2022, with Apple dominating half of the resold phone market.
43% of Europeans have owned a refurbished phone. In the U.S., the used phone market is projected to grow by approximately 13% annually through 2032.
Several things are driving the move to refurbished devices, like better repair quality and warranties have made these phones less risky purchases. High prices for new models drive consumers to consider more affordable options that still have new features. Small upgrades in new smartphones make refurbished ones more attractive.
Companies like Back Market are capitalizing on this trend. The French secondhand-tech marketplace has raised over $1 billion and expects to become profitable in Europe this year. CEO Thibaud Hug de Larauze predicts a future where 90% of adults may choose refurbished products or repairs over new purchases.
Are you using a refurbished device, or have you ever thought about it?