What is the Future Forecast of the Refurbished Cell Phone Market in the UK from Today Until 2027?

According to the report released by CCS Insight, refurbished cell phones are still growing in terms of popularity as the demand for these devices has increased by up to as much as 60% in the United Kingdom alone.

The demand for refurbished cell phones is growing. (Photo credit: Forbes)

There are two possible reasons for this growing interest and these are:

• The rising prices of premium smartphones from known brands.
• A perception that mobile phones that are being released are missing innovation already.

This led to longer refresh cycles for older phones and lower sales for the latest models. As a matter of fact, many smartphone owners lately are feeling satisfied with their current device that they aren’t exactly thrilled about handing out a large sum just to get the recent model.

This is why we are seeing more high quality refurbished cell phones today, not only because of the demand, but also the increasing desire for sustainability too.

An Increase in Used Smartphone Market

With these reasons alone, those who haven’t considered getting a second-hand device are now seeing the value. As stated by the CCS Insight director of consumer as well as connectivity, Kester Mann, the used smartphone market is growing. Among the factors that are believed to contribute to the growing demand for such smartphones are:

• Growing value of current mobile phones in the market.
• SIM-only plans that are more attractive to smartphone users compared to locked in periods that carriers offer.
• More options for trade-ins or exchanging current phones with a new one.
• The UK text-to-switch legislation is already making an impact in the market which can lead to consumers switching networks more often.
• UK consumers tend to purchase more online compared to other countries like in the US.
• Retailers are starting to invest in physical stores making them more enticing to customers thus creating a long-term value for them.

Phone Market in the UK is Moving Digitally

Like it was mentioned above, consumers living in the United Kingdom tend to purchase devices online. Based on the research of CCS Insights almost half of smartphone users in the country buy over the internet which is much higher compared to the United States where only 27% make their smartphone purchase online. What this means is that in the US, the mobile carriers there are stronger here since a good number of smartphones bought are conducted in-store. Smartphone users in the UK claimed that there is nothing that will make them visit phone stores more often.

Customers prefer to buy phones online. (photo credit: uswitch.com)

CCS Insights’ Mann further observed that online presence plays a key role when it comes to searching mobile phones in the UK. As a matter of fact, 40% of UK respondents stated that they did their research for a new phone over the internet which is far more than the numbers that were recorded in the US.

If this is any indication, it should tell retailers of refurbished cell phones to actually invest in their digital presence. Being able to provide their target customers a high-end browsing and buying experience can do wonders for their sales.

Does this mean that there will be no future for physical stores for mobile phone retailers? Of course not. Retailers of mobile phones who have brick-and-mortar stores can put more effort in creating a welcoming space for their clients. Additionally, they should be able to encourage potential customers to test out their products especially with the aid of knowledgeable sales representatives to help them figure out which mobile phone is appropriate for their needs and their budgets too.

Worldwide Used Smartphone Market will Boom

According to the International Data Corporation, or IDC, the worldwide used smartphone forecast for 2020 to 2023 is that the shipment for refurbished cell phones will reach up to 332.9 million by 2023 with a compound annual growth rate expected to hit 13.6%. This is due to the following factors:

• A higher demand for refurbished cell phones that can be bought for less the price than the recently released premium mobile devices.
• Mobile companies are having a tough job coming up with innovative smartphones with features that they can justify the high price tags that are attached to them.
• There will be an uptick in trade-ins once carriers roll out their 5G networks where mobile phone users will be sending in their used smartphones to be replaced by those that support 5G.

According to the IDC research manager for WorldWide Quarterly Mobile Phone Tracker, Anthony Scarsella, the rise of used smartphone market across the globe is not going to slow down anytime soon, which cannot be said the same when it comes to the sales for new gadgets these days. He further stated that refurbished cell phones offer smartphone users a cheaper alternative to premium smartphones which is quite enticing given that this means more savings for them.

Yes, there are regulatory compliance as well as initiatives to save the planet that are contributing to the rise of used smartphones these days, getting big savings is one of the most important reasons why plenty are now eyeing getting a second-hand unit instead of buying a brand new one. Will Stofega, Mobile Phones’ program director, stated that one of the keys as to why the used smartphone market will continue to grow from 2020 to 2023 is the chance to be able to trade-in used smartphones to acquire the latest model. The combination of allowing trade-ins to be conducted together with financing plans can contribute to the rapid growth for refurbished gadgets in the years to come.

What are Refurbished Cell Phones?

What are refurbished smartphones? (Photo credit: CellPhones.ca)

All these talk about refurbished mobile phones can be confusing to someone who is just starting to consider getting one. According to IDC, these refurbished gadgets are those that have been turned in by their owners at various collection points. After the device has been tested and deemed qualified for refurbishment it will then be sent to a facility or factory where the refurbishment will take place. Once it has completed the process, it will then be brought to partner retailers to be sold at a cheaper price than a brand new one. Refurbished cell phones should not be considered as these hand me downs that you get from family members or relatives, but rather they have been repaired or fixed until they are almost like-new condition.

Benefits of Refurbished Devices

Refurbished gadgets are typically sold at a much lower rate compared to their original listing since they are no longer deemed as brand-new. A quick refresher here, a brand-new device is one that is sealed in its original box. Mobile phone companies as well as retailers cannot list a returned smartphone as new even if it was used for a few days since they are no longer sealed. What they can do is to refurbish the unit and put it in its factory setting prior to selling and at a cheap price.

There are several benefits to purchasing a refurbished unit these days and these are:

• Big savings. There is no doubt that the major draw for customers to get their hands on refurbished units is the fact that they can get huge savings from them. They are more enticing especially when the prices are compared with the flagship phones that have just been recently released.
• Extended life cycle. Mobile phone users these days are sticking with their old phones because they still suit their needs. This keeps the unit still in circulation and not left in trash cans.
• Safer for the environment. With the demand for mobile phones increasing each year, the more e-wastes or electronic wastes are being produced. This is due to the fact that there are quite a lot of people who simply throw away their old phones rather than recycle them. Nowadays, many are becoming smarter with their mobile phone usage and are more aware of the impact of used phones to the environment that they are willing to do trade-ins or simply sell their old devices for a quick cash while saving the planet.
• Less complicated interface. Premium phones are not only bigger and faster but they have tons of features that can be a bit overwhelming to use for many. This is one of the drawbacks of many high-end smartphones which can be overly complicated especially to the elderly. Refurbished old mobile devices tend to be more appealing to senior customers as well as to those who prefer a simple and straightforward device that they can use on a daily basis.

There is no doubt that the worldwide used smartphone forecast for 2020 to 2023 is pretty accurate, given that there are plenty of tell-tale signs that smartphone users are more inclined to purchase refurbished gadgets over the brand-new ones. This is not surprising as there is a growing disinterest with the new phones since they are missing the oomph that many want in a compact device. Refurbished cell phones, on the other hand promises like-new conditions, and the best part is that they come at really affordable prices which many now prefer on this website.