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.