Apple dominates refurbished smartphone market with 49% share in 2022

Apple’s sales of refurbished iPhones experienced double-digit growth in 2022, strengthening its hold on the global market for returned and repackaged smartphones. According to a report from Counterpoint Research (via DigiTimes), Apple’s refurbished sales grew by 16%, earning it a 49% share of the market last year, up from 44% in 2021. While Apple dominated almost half of the market, Samsung was a distant second with a 26% share, down from 28% the previous year.

The rise in refurbished iPhone sales is a testament to Apple’s efforts to extend the lifespan of its devices while also boosting sustainability efforts. The refurbished phone market is an essential element of Apple’s environmental policies, and it has continued to invest in it by expanding its product range.

India became the largest refurbished smartphone market in 2022, taking over China, which experienced a 17% decline in refurbished phone sales in the same year. Most emerging markets saw limited supply of refurbished devices with consumers reportedly holding on to new smartphones for longer.

Apple’s refurbished iPhones undergo a rigorous restoration process, which involves new batteries, outer shells, and a fresh USB-C to Lightning cable, making them virtually identical to new-in-box iPhones. Refurbished iPhones from Apple are also unlocked and can be used with any carrier, making them an attractive option for many users.

Furthermore, Apple’s warranty policy is a significant factor contributing to the continued popularity of refurbished iPhones. All refurbished iPhones from Apple come with a full one-year AppleCare+ warranty that covers battery and outer shell repairs, as well as the option to purchase extended AppleCare+ coverage.

In general, global smartphone sales were impacted in 2022 by rising component prices and unusually high inflation, leading to increased demand for lower-priced refurbished models across the market, according to Counterpoint. However, IDC suggests that interest in refurbished phones may turn out to be a long-term trend over the next few years, thanks to trade-in programs and device premiumization.

The refurbished smartphone market grew 5% YoY in 2022. However, Samsung was unable to tap into that growth as the company’s share in the refurbished smartphone market went down from 28% in 2021 to 26% in 2022. According to Counterpoint Research, “There was a small percentage shift of Android consumers to iOS in 2022, which affected Samsung refurbished sales.”

Apple was leading the refurbished smartphone space in 2021 with a market share of 44%. Now that a considerable number of people have made a shift from Android to iOS, the company’s share in the refurbished smartphone market has reached 49%. Counterpoint Research reports, “Apple’s iPhones remained the most sought-after smartphones due to the brand perception, high margins, and high inventory turnover ratios.”

Although Apple has eaten up Samsung’s share in the refurbished smartphone market, the South Korean tech giant is still way ahead of every Android smartphone manufacturer in this space. Oppo and Vivo have only a 3% share each, while Huawei stands at just 2%. All the other brands combined contribute only 17% to the refurbished smartphone market.

The supply of refurbished smartphones is one of the significant factors that decide how a company performs in this space. That means Samsung has to increase the supply of refurbished smartphones to gain a share of this market. The company has recently started selling Galaxy S22, S22+, and S22 Ultra through the company’s Certified Re-Newed Store, but it has to offer a wider collection of models to increase refurbished smartphone sales.

The growing trend of refurbished smartphones is not only beneficial to consumers who want to save money, but it’s also beneficial to the environment.

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