Refurbished Phones Gain Popularity Amid Global Recession
Last Year Refurbished Phone Sales Up 5%, New Phone Sales Down 12%
Instead of expensive new smartphones, affordable and like-new 'repackaged phones' are gaining popularity. The repackaged iPhone 13 series released by KT on the 18th sold out within a week.
As of the afternoon of the 25th, all repackaged iPhone 13 series smartphones sold by KT are sold out except for the iPhone 13 Pro 128GB Alpine Green color.
Repackaged smartphones are devices that were activated at carrier stores but canceled or returned within 14 days, or display models in good condition that have been inspected and sold at discounted prices. There may be minor scratches, but since professionals thoroughly check whether they function properly, there are no functional issues. Because they are genuine devices, if the manufacturer's warranty period based on the activation date has not expired, customers can also receive repair services from the manufacturer.
Although they are like new, repackaged phones are cheaper because they are returned products. For example, the iPhone 13 Pro 1TB, originally priced at 1,661,000 KRW, is sold for 990,000 KRW, and the iPhone 13 Pro 512GB, originally priced at 1,408,000 KRW, is sold for 927,300 KRW, offering up to 40% discount. Even though they are returned phones, the official subsidies are provided the same as for new iPhone 13 series devices. However, it is cheaper to purchase with a 24-month contract discount (25%) on the monthly fee rather than relying on the official subsidy. Assuming a 90,000 KRW monthly plan, the official subsidy is up to 172,500 KRW, while the contract discount totals 540,000 KRW.
A KT representative said, "Since these are not widely sold but offered through a special promotion on the website, we do not disclose the number of units sold or distribution scale." They added, "There is no reason for rational consumers not to purchase."
The popularity of repackaged phones is not limited to Korea. As the global economic downturn continues, demand for returned phones that are like new is increasing worldwide. According to Counterpoint Research, recent sales of refurbished smartphones are rising sharply compared to new smartphone sales. Refurbished smartphones are products repaired from returned or initially defective devices and resold at lower prices. This is a broader concept than repackaged smartphones.
According to Counterpoint Research's 'Global Refurbished Smartphone Tracker,' sales of refurbished smartphones increased by 5% last year compared to the previous year, while new smartphone sales decreased by 12% during the same period. In 2021, refurbished phone sales jumped 14%, whereas new smartphone sales grew by only 5%. In 2020, refurbished phone sales increased by 5%, while new smartphone sales dropped by 12%. Counterpoint Research stated, "If refurbished smartphone sales in China had not declined by 17% in 2022, the growth would have been greater," adding, "The resurgence of COVID-19 and the zero-COVID policy affected the demand for refurbished smartphones in China."
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