If it ain’t broke, don’t fix it.
Gen Z is taking their thrifting obsession to the next level, this time using smartphones.
Rather than opting for a brand new iPhone, the tech-savvy generation is settling for a like-new, refurbished iPhone at a fraction of the original retail price.
“As new versions of smartphones are incrementally improved, a growing percentage of consumers feel that refurbished products are better,” said Glenn Cardoza, senior research analyst at Counterpoint Business. told Insider.
“They don’t mind using a cheap refurbished model that has most of the modern features.”
Anmol Alloz, 23, told Insider he bought a used iPhone 13 Pro model just two years ago and saved $650. The UK-based IT salesman said he was not impressed with the latest and greatest features in new smartphone models, such as AI integration, and lamented the loss of value in personal devices.
“The moment you touch the wrapping paper, it’s 200 pounds.” [$259.96] “It fell into the drain,” he said. “I’m going to stick with the renovated route.”
For Amy Matey Conrad, 34, cutting-edge features aren’t all that appealing.
The Washington, D.C., resident said she and her husband purchased a refurbished smartphone and are now using a second device, a Samsung Galaxy S21.
“I primarily use my phone for calling, texting, work, and my camera,” the avid second-hand shopper told Insider. “Many other software innovations aren’t very useful to me.”
According to CNN, sales of the new iPhone 16 have been disappointing since its launch last month, despite its cutting-edge features. Apple analyst Ming-Chi Kuo told Insider that pre-order sales for the next-generation iPhone were down an estimated 13% compared to the first weekend of iPhone 15 sales.
However, the refurbished cell phone market is growing, Insider reported.
According to data from Counterpoint Research, it grew by 5% from 2021 to 2022, with Apple accounting for half of the resale market. According to Insider, Zion Market Research predicts that the used smartphone market could rise 13% annually through 2032.
Thibaut-Hugues de Larose, CEO of used technology company Back Market, told Insider that within the next 10 years, the majority of adults will buy refurbished models rather than new ones. and expects people to start repairing devices they already own.
“People are really starting to realize that the next product isn’t going to be that innovative,” he said, likening it to the used car market.
According to Insider, Back Market has a customer base of 15 million people, many of whom are repeat customers, and has announced that it will become profitable for the first time in 2024. The company promotes all sorts of refurbished devices, but cell phones are a high-volume product. of sales.
Hug de Larauze told Insider that customers care more about the bottom line than the smartphone model.
Back Market previously ran a promotion that offered customers a new cell phone blind-box experience, allowing them to buy a used iPhone or Android for just $249 without seeing the model.
The device sold out in two hours.
Hug de Larauze questioned the so-called innovations promoted by tech companies, such as AI integration, that drive up list prices.
“What does it do?” he asked. “What would change in your life?”
