When Steve Jobs introduced the iPhone in 2007, he said, “Every once in a while, a revolutionary product comes along that changes everything.” He was right. The world was never the same. but, iPhone16?Hmm.
The latest model, which hit stores in September, got off to a rocky start. Apple analyst Ming-Chi Kuo expects this to happen in the first weekend. Pre-order sale Compared to the iPhone 15’s first weekend sales last year, it was down nearly 13%. The iPhone 15 also got off to an impressive start this year. From January to March, Apple reported a 10% year-over-year decline in mobile phone sales. Seventeen years after the original launch, the release of a new iPhone has gone from being the biggest tech event of the year to being little more than a cellophane-wrapped software update.
Replacing that hype is a new kind of hype for the old iPhone. According to Counterpoint Research, the global refurbished smartphone market grew by 5% YoY from 2021 to 2022. apple According to market information firm International Data Corporation, they accounted for about a quarter of all new smartphones shipped worldwide in the second half of 2023. According to a 2023 survey conducted by Vodafone and tech purchasing company Recommerce Group, around 43% of people in Europe already own a refurbished mobile phone. Zion Market Research estimates that the US used cell phone market could grow approximately 13% annually through 2032.
Glen Cardoza, senior research analyst at Counterpoint, says several factors are driving the used phone revolution. Thanks to advertising campaigns and word of mouth, people are becoming more aware of refurbished mobile phones. Knowing that your friend has an iPhone 12 and is still the most active member of your group chat may increase your chances of getting a used phone yourself. The quality of repairs and warranties from refurbished cell phone retailers has improved, making buying a cell phone less risky. Some shoppers are concerned Environmental impactbut the high price is the main concern. “As new versions of smartphones are incrementally improved, a growing percentage of consumers feel that refurbished products are better,” Cardoza said in an email. “They don’t mind using a cheap refurbished model that has most of the modern features.”
Seller of remanufactured technology products believes now is the time. back marketThe France-based used technology marketplace has raised more than $1 billion and is on track to become Europe’s first company to turn a profit this year, CEO Thibaut-Hugues de Larose said. At a recent press conference, he revealed that the company served 15 million customers and sold 30 million products. This shows that Back Market has had a significant number of repeat customers over the past 10 years. While most of Back Market’s sales are phones, the company also sells smartwatches, headphones, laptops, video game consoles, and more. Refurbished technology is currently one of the five most popular used categories purchased on eBay.
Hug de Larauze is very bullish about the future of used technology. We predict that within 10 years, 90% of adults may choose to buy refurbished or repair their devices instead of buying new products. “People are really starting to realize that the next product isn’t going to be all that innovative,” he tells me. Consumers are also worried All AI That’s what companies including Apple are baking into their latest devices. “What does it do?” he says. “What will change in your life?” Hug de Larauze likens the used phone revolution to changes in car sales. Cars are expensive, losing value, and innovation from one model to the next is negligible. The idea of buying a used car and repairing it when a part breaks down has become commonplace. If your cell phone investment is similarly meager, why not get something more affordable that gets the job done, even if it means sacrificing horsepower or the latest add-ons?
Refurbished cell phone sellers are also finding a creative wave to counter years of marketing that capitalizes on “neuphoria,” the euphoria people get when they open a shiny new high-tech toy. Backmarket lampooned this idea with an ad last year that showed people wanting to get a new product but mocking the slightest change to a button or charging port. The company also recently promoted its mystery phone. Customers can buy a refurbished iPhone or Android for $249 or €299 without knowing the model. Hug de Larauze said the phones sold out in two hours in France and in just a few days in the United States. Backmarket did not disclose the total number of phones sold during the promotional period, but Hugues de Larose said sales exceeded the company’s expectations. It showed that there are shoppers who care far more about a phone’s price than its model.
Anmol Aros, a 23-year-old IT sales worker in the UK, said he bought a refurbished iPhone 13 Pro two years ago, saving him around £500. He was impressed with the phone, but less impressed with the new features in recent models. He feels that ChatGPT on his phone is sufficient and that he doesn’t need Apple Intelligence yet. Arrows said she also had sustainability in mind, adding that she’s not really attracted to new clothes or new technology because both lose their value quickly. “The second you touch the wrapper, you’re throwing 200 pounds down the drain,” he says. “I’m going to stick with the renovated route.”
Perhaps the biggest factor preventing people from buying more used phones is the manufacturer itself.
Amy Marty Conrad, 34, of the Washington, D.C., area, said she and her husband each purchased refurbished cell phones. She is using a second Samsung Galaxy S21. This was purchased two years ago. She recently replaced the battery and it now has even longer battery life. “I mainly use my phone for calling, texting, work, and the camera,” she says. “A lot of other software innovations don’t really help me.” He is very wasteful and even buys clothing and household goods second-hand.
But perhaps the biggest factor preventing people from buying more used phones is the manufacturer itself. A practice called “parts pairing,” in which replacement parts work only if the company’s software recognizes and approves them, allows tech companies to repair their own phones or send them to third-party shops for repairs. It makes things difficult. If your iPhone screen gets cracked at your local repair shop, Face ID may stop working again. That is changing, albeit slowly. In April, Apple announced that it would begin making changes that would allow some used genuine Apple parts to be installed in other iPhones. Apple did not respond to an email asking for an update on the rollout of this change, but the company has long maintained that the combination of components makes its phones more secure.
In March, shortly before Apple’s announcement, Oregon passed a law banning component pairing, making it the first U.S. state to do so. And while this only applies to devices manufactured after January 1, 2025, it’s a significant change in how manufacturers can make future technology fixes. More and more lawmakers are grappling with barriers to repair, with the European Union introducing legislation this year aimed at making it easier for people to get their products repaired by manufacturers or third-party repairers, rather than being forced to replace them. was adopted.
Tim Cook certainly doesn’t see the rise of refurbished mobile phones as an existential threat. Even though the sales are overwhelming, they’re not overwhelming by Apple’s standards. The company has already sold an estimated tens of millions of iPhone 16s, and that’s before the typical holiday boost and release of Apple Intelligence. But with consumer skepticism about AI and growing interest in second-hand phones, the company sought to reverse the trend of less excitement around the iPhone 17, 18, 19, and 20 with the 2007 Steve It will need to conjure up a glare not seen since Mr. Jobs’ presentation.
Two years ago, I bought a refurbished iPhone 11 from the back market after my iPhone XR’s display suddenly became unusable. It didn’t have an upgraded camera or 5G, but the phone allowed me to text, scroll through social media, take decent photos, and had good battery life. is. In an age of ever-changing technology, sometimes a phone just being a phone is all you need.
amanda huber I’m a senior correspondent for Business Insider, covering the technology industry. She writes about the biggest technology companies and trends.