At 48 million units, pre-owned smartphones<\/a> would constitute 23% of the total smartphone sales in 2020, while refurbished smartphones will contribute 9.1% of the total smartphone sales.
Pre-owned smartphones are essentially devices<\/a> exchanged or sold to individuals and organizations for resale purposes. These are categorized into refurbished and second-hand smartphones. While second-hand smartphones are sold on an as-is basis, refurbished smartphones are inspected, tested, repaired, quality checked and packaged for reselling purposes.
Platforms selling refurbished smartphones also, offer value-added services like warranty and financing options.
In an exclusive note shared with ET Telecom, techArc said that refurbished smartphones are becoming increasingly acceptable among consumers and is poised to drive the pre-owned smartphone sales growth.
“With online platforms popularising refurbished smartphone sales, consumers get an assured level of service and quality. At the same time, these online platforms have made the entire process of exchange user-friendly and is operated right at the door steps of such consumers,” Faisal Kawoosa<\/a>, founder analyst at techARC said.
As per the note, 85% of the pre-owned smartphones are sold under Rs 10,000 making them preferred choice for first time smartphone users as well as entry-level users looking for better specs within that budget.
Amazon<\/a>, Flipkart<\/a>, and Cashify<\/a> among major platforms driving refurbished smartphone sales, techARC study showed. togofogo, PreLoved and budli.in are some of the other brands active in this space.
Kawoosa said that pre-owned, especially refurbished smartphones will propel feature phone to smartphone journey of users. “…lack of availability of quality smartphone options ‘sweetened’ with innovative selling models will only increase the significance of pre-owned smartphones at the entry level,” he added.
As per the study, display, battery and USB port among main components of a smartphone changed or repaired in refurbishing.
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