Used and refurbished mobile devices are back!

While the smartphone market stagnates after a decade of major growth, it’s the refurbished mobile market’s turn to rise. HYLA Mobile says that the secondary smartphone market is set to grow to over 55 million units in 2020. “According to a recent IDC report, the U.S. used mobile phone market is set to grow from 15 million units in 2015 to over 55 million units in 2020—a nearly 30% compound annual growth rate in line with the height smartphone market growth.” There are 4 key reasons why the secondary smartphone market will continue to grow despite near-static smartphone penetration moving forward:

Mobile Phone Demand in Developing Markets: The United States isn’t alone in its increasing attachment to mobile phones. In some low and middle-income countries, access to mobile devices has become more prominent than access to electricity and water. This correlates to increased access for low income areas within the United States as well, providing a distribution opportunity for higher end (yet affordable) used devices.

Growth in Mobile Device Insurance and Warranty Programs: When the average price of a smartphone in the United States is over $550 (and even higher if considering a high-end iPhone or Android device), consumers are expected to invest in insurance plans to protect their investments. And yet, accidents will happen and insurance claims will rise. Growing warranty and insurance claims will call for more high-end refurbished mobile devices.

Emerging Certified Pre-Owned and PreOwned Market: The market segment is young, but major players are starting to make their presence felt. Best Buy, Walmart, Apple, and Target are providing customers with alternative means of purchasing devices—even if they have credit issues and can’t purchase equipment in installment plans.