Apple has increased its global sales of refurbished smartphones by 16% in 2022., compared to last year, suggests a new report by the analyst company Counterpoint Research. As a result nearly half of the refurbished smartphones sold worldwideand for one year, already are iPhones.
Analysts at Counterpoint estimate the smartphone aftermarket to grow 5% year-over-year in 2022. The increase could have been more substantial if sales of refurbished smartphones in China hadn’t fallen 17%, mainly due to outbreaks of coronavirus infection and the strict policies of local authorities aimed at limiting the spread of the disease.
The decline in sales in the Chinese secondary market of smartphones allowed India, where this segment grew by 19% in a year, to come out on top in the world ranking. It is followed by Latin America, where the secondary smartphone market grew by 18% during the reporting period.
By the end of 2022, Apple captured more than 49% of the secondary smartphone market, becoming the fastest growing brand in the segment of used and refurbished devices. A year earlier, the share of the American company in this segment was 44%.
High demand for refurbished smartphones is affecting sales of new iPhones and Apple’s service revenue in many markets, analysts said.
Apple has long sold refurbished iPhones through official channels and offers a full one-year warranty on the battery and case, making such devices very attractive. In addition, the company implements various environmental initiatives aimed at sustainable development and regularly updates the software even on older iPhone models.
In contrast to Apple, the South Korean company Samsung’s aftermarket smartphone sales have declined from 28% in 2021 to 26% in 2022.
Analysts believe that the trend will continue this year due to the fact that a small percentage of Android device users will switch to using the iPhone. The share of 5G smartphones in the secondary market in 2022 is 13%.