The decline in smartphone shipments in 2019 has also affected the segmented refurbishment machine market. According to Counterpoint Research, manufacturers sold 137 million refurbished units (9 percent of total sales) in 2019, down 1 percent from a year earlier. Markets such as Europe, China and the United States fell, while India, Latin America and Africa showed growth.
Jeff Fieldhack, director of research at Counterpoint, said it was the first time in four years that the market for refurbished phones had declined. The trend is changing as many consumers prefer cheap new smartphones, and major markets such as the Us and Europe now have a lot of new phones to choose from. There are also factors such as the economic downturn and the lack of access to proper ecological profits for refurbished businesses.
These types of devices are still preferred in markets with low penetration rates such as LATAM (Latin America), where you can get quality equipment at an affordable price. However, growth in such markets will be severely affected by the new crown outbreak, and sales of refurbished machines in these areas are expected to decline by 2020.
Refurbished smartphones are usually newer devices that are returned due to a malfunction and then repaired. The difference between a refurbished machine and a second phone is that the manufacturer tests it and returns it to factory-standard operation, which is often more secure than the second phone.