Despite the Spread of 5G Services,
iPhone LTE Models Sell Well
[Asia Economy Reporter Cha Min-young] Despite the global spread of 5G services, older LTE version iPhone models remain popular.
According to the recent "Smartphone Refurbished Market Report" by global market research firm Counterpoint Research on the 15th, the total market size in 2020 grew by 4% compared to the previous year. The refurbished market, which had somewhat slowed in the first half of last year, rapidly grew in the second half due to the impact of COVID-19.
Refurbishment or refurbished products refer to so-called "reconditioned products." These are initially defective or used products that have been restored to a like-new condition and resold.
By brand, Apple was by far the most popular. In the second half of 2020, iPhones held a market share of 44%, and the average selling price (ASP) was more than three times higher than other brands. Even as 5G phones become widespread, demand for Apple's refurbished LTE models continued. Counterpoint analyzed that this phenomenon contributes to increasing Apple's installed base users.
By country, the Latin American and Southeast Asian markets showed somewhat slower recovery, but in regions such as the United States, Europe, and India, the refurbished market grew, and supply and distribution became active. However, China's refurbished market is gradually shrinking.
Counterpoint Research pointed out, "In China's case, although demand remains high, the cost of key components has risen, and due to the risks of the US-China trade war, buyers are reluctant to purchase." As a result, refurbished demand is expected to shift to Africa, China, India, and Europe. New refurbished companies are also moving to these regions.
The smartphone refurbished market growth trend is expected to continue this year as well. Counterpoint stated, "Demand to purchase premium brand flagships at lower prices continues," offering this outlook.
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