'New Car Market Doubles' Like Used Cars... Is the Trend Used Phones? [Curiosity Lab]

Consumers Tired of Hollow Innovation Turn to Used Phones
"iPhone 16, 17 Lack Innovative Features"
Used Phone Company CEO: "90% of Adults Will Use Used Phones Within 10 Years"

"The iPhone 16 and iPhone 17 lack innovative new features, and their artificial intelligence (AI) capabilities are also limited. Achieving the 5-10% sales growth that the market expects will be difficult," said Jefferies, a US investment bank, in a recent report evaluating the iPhone.

Customers visiting the Apple Store in Myeongdong, Jung-gu, Seoul, on September 20, when Apple's first AI smartphone, the 'iPhone 16,' was released in Korea, are looking at the product. Photo by Jinhyung Kang aymsdream@

The evaluation of the iPhone 16 in the United States is not favorable. After the disappointing start of the iPhone 15 this year, the first weekend sales of the iPhone 16 decreased by 13% compared to the iPhone 15. Now, 17 years after the original model was released, the launch of a new iPhone has fallen to the level of a cellophane-wrapped software update at this year's major tech events.

US Business Insider, in its assessment of the iPhone, analyzed that people have "decided to use a used iPhone instead of a new one," and that "used phones will replace them." Instead of buying new products, people are repairing their existing phones or using used phones. According to Counterpoint Research, the global market for such used smartphones grew at an annual rate of 5% from 2021 to 2022. Apple accounted for half of the used phone market in 2022. According to one survey, 43% of people already own a used phone. There is also a forecast that the used phone market in the US could grow at about 13% annually until 2032.

On September 20, when Apple's first artificial intelligence (AI) smartphone, the 'iPhone 16,' was released in Korea, buyers lined up at the Apple Store in Myeongdong, Jung-gu, Seoul. Photo by Jinhyung Kang aymsdream@

Back Market, headquartered in France, has attracted over $1 billion in investment and is expected to turn a profit in Europe for the first time this year, said the company's CEO Thibault Hug de Larauze. At a recent press conference, he stated that the company has served 15 million customers and sold 30 million items. Most of Back Market's sales are mobile phones, but it also sells smartwatches, headphones, laptops, and video game consoles.

Thibault Hug de Larauze said, "Within 10 years, 90% of adults will either buy used products or repair their devices instead of buying new ones," adding, "People are actually beginning to realize that there is little innovation in the next products." He compared the revolution of used phones to the used car market. In the US, the used car market is more than twice the size of the new car market. Business Insider reported, "Apple CEO Tim Cook does not see the rise of used phones as an existential threat," but also noted, "Consumer AI skepticism and interest in used phones are growing. Apple failed to recreate the global excitement of Steve Jobs' 2007 presentation, and it will need to regain enthusiastic support through the iPhone 17, 18, 19, and 20."