Smartphones are remarkably shaping the world, and mobile phones have formed an integral part of consumers’ lives in the last decade - from supporting communication and engaging in e-Commerce, to supplementing the growth of digital content. Although the recycling rate for mobile products is low in a majority of leading electronic categories since consumers either store or throw away used gadgets, there has been a significant rise in the adoption of used and refurbished mobile phones. In developed countries such as Italy, the U.K., France, Germany, and the U.S., a majority of the consumer base is tech-savvy and prefers advanced and high-end technological equipment. Owing to a short upgrade cycle of several mobile phones, the customers in these countries generally are not willing to spend much on new mobile phones. Due to this, a majority of the population is shifting their interests towards refurbished and used mobile phones with the features they desire and also in low price. As a result, the refurbished and used market is attracting a significant customer base from both developed and developing countries.
Developing nations are expected to exhibit high demand for refurbished and used mobile phones
Emerging economies such as Philippines, Thailand, Mexico, Russia, India, Brazil, and Argentina are turning out to be leading markets for used and refurbished mobile phones. Consumers in these regions are price sensitive and usually prefer purchasing low-cost products, especially when it comes to buying electronics. The market for used and refurbished mobile phones is a highly unorganized one and companies are offering refurbished and used mobile phones at inexpensive rates. The growing customer dependence on gadgets in developing regions has increased the demand for refurbished and used mobile phones in these regions along with others.
Urbanization in emerging economies is impelling manufacturers to enter into untapped market
The burgeoning urbanization and infrastructural development in developing countries such as Indonesia, Philippines, China, and India, among others are attracting numerous mobile manufacturers. Mobile phone manufacturers in these regions are constantly focusing and investing on research and development and are producing high-end mobile devices to meet the growing technological demands of consumers. Additionally, the shift of the economic power to East from West is bolstering urbanization in these countries. This is prompting high demand for refurbished and used mobile phones.
In this regards, the mid-price brand division is becoming a prominent division among all the brand divisions, especially in developing regions. In mid-priced brands, the vendors are providing advanced functions and features in comparatively low prices. In several developing countries such as Turkey, Argentina, China, and India, these brands are gaining high traction owing to their affordability. Moreover, the implementation of government regulations regarding e-wastes and green initiatives in regions such as the Middle East and Africa and Asia Pacific is generating extensive demand for refurbished and used mobile phones. The established as well as new players in the market are focusing on entering the markets of these regions in order to retain their position in the market and also stay competitive at the same time.
Global Information & Communication Technologies (ICT) Sector Outlook along with a Synopsis of the Global Refurbished and Used Mobile Phones Market
The global digital ecosystem has been continuously evolving over the last few years. The worldwide ICT sector has witnessed some key disruptions of late and governments of various economies are devising and implementing smart and inclusive regulations to govern sector penetration and facilitate technology connectivity to all parts of the world. Even as the world of technology prepares for a massive revolution with unimaginable advancements powered by machine intelligence, here are some of the key drifts presently trending the global ICT sector:
Mobile as the new internet accessibility engine: Currently, about three-fourths of internet usage is through mobile phones, with an increasing usage witnessed in low-income and middle-income countries. Yet, over half the world’s population is bereft of mobile broadband internet services. Mobile data providers have accepted this challenge and are targeting niche, unpenetrated markets with high-speed connectivity offerings to increase their customer base.
Cloud computing to shoot beyond the sky: Cloud is a potent catalyst in all technological advances of the 21st Cloud is transforming the way enterprises handle big data, and ICT companies are looking to deploy new mechanisms and tools to “speak to data” and acquire the relevant information capable of impacting cross sector business growth.
Swifter integration of networks and technologies: ICT will continue to disrupt industries and with an increasing shift in focus towards cross-functional platforms that integrate networks, devices, and technologies, a structured integration of communication applications and protocols is fueling new service offerings.
An app-led technology universe: If mobile is at the heart of the ICT revolution, mobile apps are the arteries that pump in the necessary innovation for survival. The rise of start-ups offering a plethora of mobile apps is set to revolutionize the entire paradigm of the global ICT sector.
Cyber readiness is the norm: A rapid digitalization has also upped the risk of cybercrimes and cyber-attacks. Mobile companies are working to build secure ICT servers and networks and cyber readiness is of paramount importance today while introducing new products and services in the global market.
PMR utilizes robust methodology and approach to arrive at market size and related projections. The research methodology for this report is based on 3 dimensional model. We conduct about 45-60 min duration detailed interviews with product manufacturers; apart from this we also collect market feedback from industry experts. To validate this data, we interact with senior panel members having more than 10 years of experience in relevant field. The panel members help in validating the findings and fill the gaps if any. In addition, we leverage on our existing pool of information, paid database and other valid information sources available in public domain. Usually industry interactions extend to more than 50+ interviews from market participants across the value chain.
PMR collects data from secondary sources including company annual reports, association publications, industry presentations, white papers, and company press releases apart from these we leverage over paid database subscriptions and industry magazines to collect market information and developments in exhaustive manner. After being done with desk research, detailed questionnaire and discussion guide is formulated to initiate primary research with key industry personnel; the discussion aims at collecting key insights, growth perspectives, prevalent market trends and quantitative insights including market size and competition developments. Both of these research approaches help us in arriving at base year numbers and market hypothesis.
In this phase, PMR validates the data using macro and micro economic factors. For instance, growth in electricity consumption, industry value added, other industry factors, economic performance, growth of top players and sector performance is closely studied to arrive at precise estimates and refine anomalies if any.
Data Analysis and Projection
Data analysis and projections were made based on proprietary research frameworks and statistical analysis, which was further validated from industry participants. These frameworks include Y-o-Y growth projections, macro-economic factor performance, market attractiveness analysis, key financial ratios, and others.
For public companies we capture the data from company website, annual reports, investor presentations, paid databases. While for privately held companies, we try to gather information from the paid databases (like Factiva) and based on the information we gather from databases we estimate revenue for the companies. In addition, the team tries to establish primary contact with the companies in order to validate the assumptions or to gather quality inputs.
Standard Report Structure
The global refurbished and used mobile phones market has been segmented into: