Today, a new analytical report was posted claiming that the global refurbished smartphone market saw healthy growth across most regions in H2 2020. The market more than made up for the slump in H1 2020 with a modest 4% increase in 2020 compared to 2019 volumes. Counterpoint expects a higher increase in 2021.
The Surge in H2 2020
When it comes to the refurbished smartphone market, its statistics are always behind new smartphone shipments. Counterpoint's latest report on refurbished smartphones covers 2020 and begins by noting that "Due to the sharp deceleration in H1 2020, mainly due to COVID-19, the refurbished smartphone market saw a rise in demand and supply in H2 2020.
Senior Research Analyst Glen Cardoza: "While there was limited supply of smartphones in the secondary market in the first half of 2020, there was a sharp increase in both demand and supply during the second half of 2020. When the markets opened, most refurb players saw a surge in resell volumes and trade-ins. All regions saw YoY volume increases in H2 2020.
While some markets like LATAM and Southeast Asia took time to recuperate in H2 2020, other regions like the US, Europe, India, and Africa bounced back and tried to increase supply and distribution-related activities."
Highlighting that Apple had gained share in the secondary market, Research Director Jeff Fieldhack said:
"There has been no slowdown in the appetite for Apple within the secondary market. In fact, over the past year, it has increased compared to its competitors.
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Apple’s share in the global market for new smartphones was just over 13% in H2 2020. Its share in the secondary market over the same period was over 44%.
In addition, Apple’s secondary market ASPs (average selling prices) are almost three times higher than the average of all its competitors.
Even with the rollout of 5G by over 150 mobile operators in over 70 countries, the demand and ASPs for Apple’s refurbished LTE portfolio remain elevated. This is helping Apple grow its installed base as many of the Apple buyers in the secondary market are first-time buyers." For more on this, read the full Counterpoint report.