Wednesday 28 August 2019

Are refurbished electronics making waves in the consumer tech industry?

The refurbished electronics industry is making a huge leap in 2019.

The world is becoming less fascinated with new flagship smartphones that come out each year. The $1,000 price tag is making everyone think twice about upgrading when they already have a capable mobile.

But there are those who make it a point to get the absolute latest product from their favorite brands. The refurbished route makes it a less expensive, more environment-friendly endeavor.

The global rise of renewed tech
In 2018, the world witnessed an amazing array of next-gen smartphones that ranged from the iPhone X to the Samsung Galaxy S8. It was also the time that smartphones were beginning to be sold at a thousand dollars apiece.

Suffice to say, everybody wanted one, but they couldn't justify the price tag.

The 'renewed' market was then created to boost sales by offering budget-minded consumers a lower-priced alternative to the same smartphone brand and model. A report from Counterpoint mentioned that the refurbished industry in Europe grew 13 percent in 2017, or equal to 140 million new phones which was greater than the new phone sales.

In the United States, Serge Verdoux reported that the figure was 10 times greater than its EU counterpart, which says a lot about the appeal of going 'refurbished'.

Consumer tech gets a nice boost too
The success of refurbished smartphones has made its way to general consumer tech. When people are educated on what 'renewed' really means, then they're more likely to support these kinds of products.

Refurbished TVs, laptops, digital cameras, monitors and other popular goods are also getting a share of the market. Businesses, especially startups prefer refurbished office equipment so they can save more money.

What is the term 'refurbished', really? In simple terms, it means that the item is almost the same as its brand-new counterpart in function and looks. They're repaired, sent back to the shelves after a short return and inspected via standard testing to ensure they work as advertised.

The refurbished option
It's not that difficult to see why people would prefer the renewed products over new items. When they see the lower price tag for the same kind of quality and brand, they'll feel that they're getting a better value on their purchase. Money saved with refurbished products can then be spent on essentials, such as food, clothes and rent.

Mobile phone and tech companies understand that they could make a profit on the refurbished industry to supplement sluggish growth of the new phone market. Governments are also becoming more aware of the value of sustainability and how they could reduce their nation's carbon footprint for a better future.

Refurbished impact on the smartphone industry
In the US and EU, new phone sales have started to taper off, largely because the population already has last year's devices and are hesitant to spend thousands of dollars on new models that offer incremental upgrades. Plus, the fact that new competitors from Asia, Africa and India are emerging. Mobile carriers started lifecycle smartphone programs along with their packages.

Buyback programs and recycling initiatives make it easier for consumers to dispose of their tech goods responsibly. Recycling Sites like Plunc can give you a portion of your money back in exchange for selling old iPads, iPhones, and MacBooks, as well as other second-hand devices including laptops, smartphones, tablets, game consoles, speakers, and more.

The rise of renewed
As of today, the renewed market is still going strong and thriving. People now have a wide variety of options to dispose of their goods, including selling on eBay, Amazon and Facebook Marketplace. More renewed goods mean there's less production of new phone models and less water and gas usage.

The analysts at IDC expect the refurbished industry will grow to $52 billion in the next 5 years. Source- 

With incentive programs from the government and major brands, it's now easier to trade in your old gadget for a new one at a discounted price.

Why buy refurbished?
Greater awareness that there's a renewed option is great for everyone involved- we, the consumers, the tech companies and Earth.

You can now get the latest gadgets at a more affordable price, while knowing that your old devices can be recycled, reused or sold at online marketplaces in exchange for money.

A small percentage may still prefer shiny, brand-new phones every now and then, but the rest can contribute to a greener future by choosing refurbished products.

Refurbished is definitely the future of consumer tech because it manages to hit all the right points in the consumer, smartphone manufacturer and environmental view. When there's a cheaper option, people tend to upgrade because they'll save money and can use that for food and other necessities. Instead of old phones ending up in landfills, they get recycled, reused or repaired and help make the world a better place to live in.

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