Refurbished tech is making a comeback in 2019. Flagship mobile sales are struggling and with good reason. Not everyone has the money to upgrade to smartphones that cost a thousand dollars each. To this end, refurbished models are preferred as they give consumers a way to enjoy the latest technology at a fraction of the price.
The Rise Of The Refurbished Industry
2017 was an exciting year as we saw the iPhone X, Google Pixel 2XL and the Samsung Galaxy S8 Note in action. But for the majority, they would have to keep using their current smartphones that they just bought one year ago.
The refurbished industry seeks to disrupt the slow growth of new smartphone sales by offering lower prices on the same brands and models. A report by Counterpoint has mentioned that the refurbished market grew to 13%, or 140 million goods in 2017, more than the figure obtained by new phone sales. source
In the U.S., back market coordinator Serge Verdoux stated that the number was about 22% and discovered that the industry acquired 10 times that of its European counterpart in terms of sales.
Consumer Tech Goods Are Trending Too
Cell phones are just a percentage of the refurbished trend. Consumer goods, including TVs, smart devices, laptops and appliances are also enjoying more sales by people and businesses alike. For startups, it makes more sense to invest in cheaper equipment to free up funds for more important things.
A large percentage of consumers tend to favor refurbished units when they get educated about its status. In truth, refurb is just as good as brand-new items as they undergo testing and standard checks before being put on the shelves.
How Did The Shift Start?
Rising costs of newer tech are the major driving force of why people are now looking towards refurbished as a viable option. As newer and better features get introduced, e.g., faster processors, cameras and displays, companies will need to increase the price to stay in the black.
Newer smartphone manufacturers have begun offering budget phones as a way to grab a share of the market. Major companies then began selling refurbished to compensate for the loss of revenue. Also, increasing awareness and regulation enacted by governments now gave consumers a choice between buying brand-new or refurbished.
How Refurbished Changed The Industry
The slowdown of new phones in the US and Europe were predicated with refurbished offerings and new smartphone companies in India, Africa and Asia. Mobile carriers began selling lifecycle services for refurb goods along with plans.
Moreover, take-back programs and recycling initiatives make disposal of old tech easier. Sites such as Plunc can buy your phones, gadgets and game consoles at a fair price. You can get trade-ins, discounts or gift cards for popular branded items.
The Future of the Refurbished Industry
Nowadays, people can list up their old tech on popular marketplaces such as eBay and Facebook and recoup some of the costs that went into buying it. People who buy refurbished get maximum savings and save the environment at the same time. Companies can still profit by other means, and fewer production equals a lesser carbon footprint.
The future is bright for the refurbished market. IDC analysts conclude that the industry will grow by as much as $52 billion in the next 5 years. source
Why Buy Refurbished?
Buying refurbished leads to several benefits for consumers, manufacturing companies and the environment. For one, individuals can opt for their favorite brands and upgrade to a phone they like without having to pay thousands in the process. The way the market is going, you'll soon be able to buy laptops, smart appliances and tech goods in either new or refurbished prices.
Businesses and startups can choose lower-cost equipment that can last just as long as their brand-new counterparts. Smartphone companies can keep making flagship phones for early adopters while enjoying another revenue stream. Landfills and Kwiksweep won't have as much electronics dumped in as people are now more aware that their old tech can be recycled, reused to turned into something new.
For some, nothing beats buying a shiny new product that looks, feels and performs great. For the others, a great deal consists of a discounted gadget from their favorite brand. The future of refurbished is bright and will only get better from here on.
