Apple has surpassed Samsung and dominated the used smartphone market thanks to its different policy compared to its competitors.
Apple and Samsung are two manufacturers currently leading the used smartphone market. In 2023, the number of used smartphones sold is a record 309.4 million units, an increase of nearly 10% compared to 2022. In particular, Apple products dominate the market with absolute dominance. about 82% of the used equipment market.
According to leading market research company IDC, the used smartphone market will exceed 430 million units by 2027, with a market value of 109.7 billion USD.
The popularity of used smartphones is increasing because it is an economical and environmentally friendly option. Users can save a significant amount of money when buying used smartphones instead of buying new ones. In addition, reusing used smartphones also helps reduce the amount of electronic waste and protect the environment.
Instead of upgrading devices on average every 2 years, most organizations and individuals using a large number of Apple smartphones will switch to an upgrade cycle every 3 or 4 years. This is not limited to smartphones, but is also similar to Macbook computers.
A longer replacement cycle will make it difficult for manufacturers to expand production scale as well as introduce new equipment models and optimize technology. However, Apple is taking advantage of its disadvantage to create a new lucrative business segment.
Realizing that the need to repair and restore the operation of devices is increasing, Apple has actively invested in developing this business area, creating more predictable revenue. The company has begun researching closed production processes and has made public statements that it wants customers to use iPhones for as long as possible.
Apple has quietly expanded its presence in the aftermarket, an extremely lucrative market over which it can wield absolute dominance.
Analysts also note that more and more genuine Apple-branded repair shops are appearing in many countries. This clearly shows Apple’s different strategy compared to other technology competitors.
In addition, the success of the iPhone in the used smartphone market is also a result of Apple’s trade policy. Apple allows resellers and retailers to resell used products at prices better than retail prices. This helps customers save a significant amount of money as well as helps Apple retain its customers.
