If it ain’t broke, don’t fix it.
Gen Z is taking their frugal obsession to the next level, this time with their smartphones.
The tech generation isn’t opting for brand new iPhones — instead, they’re opting for refurbished ones in good condition for a fraction of the original retail price.
“With incremental improvements between new versions of smartphones, a growing portion of consumers feel that refurbished options are better,” Glen Cardoza, a senior research analyst at Counterpoint, told Business Insider.
“They don’t mind using a cheaper refurbished model that has most of the latest features.”
Anmol Aroz, 23, bought a second-hand iPhone 13 Pro model just two years ago and told Insider he saved $650. The IT sales worker, based in England, said he is unimpressed by the latest and greatest features in new smartphone models, such as AI integration, and lamented the loss of value of personal devices .
“The second you touch the wrapper, it’s £200 [$259.96] down the drain,” he said. “I’m ready to stick to the renewed path.”
For Amy Maty Conrad, 34, the latter features simply aren’t appealing.
The Washington, DC, resident said she and her husband bought refurbished smartphones, with her on her second device, a Samsung Galaxy S21.
“I mainly use my phone for phone calls, email, work and a camera,” the avid second-hand shopper told Insider. “A lot of the other software innovations aren’t doing much for me.”
Sales of the new iPhone 16 disappointed after its launch last month, despite the latest capabilities, according to CNN. Apple analyst Ming-Chi Kuo told Insider that pre-sales of the next-generation iPhone fell about 13% compared to the first weekend of sales for the iPhone 15.
The market for refurbished phones, however, has grown, Insider reported.
From 2021 to 2022, it grew by 5%, according to Counterpoint Research data, and Apple accounted for half of the resale market. Zion Market Research, per Insider, projects that the market for second-hand smartphones could grow by 13% annually through 2032.
Thibaud Hug de Larauze, CEO of secondhand tech company Back Market, told Insider that within the next decade, he expects most adults to buy refurbished models and repair the devices they already own rather than buy new ones.
“People are starting to realize that there’s not that much innovation in the next product,” he said, comparing it to the used car market.
Back Market recently announced that it will turn a profit for the first time in 2024, with a customer base of 15 million, many of whom are repeat customers, according to Insider, and as the company advertises all kinds of refurbished devices , phones are a big part. 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 offering customers a blind box experience with a new phone, where they could buy a used iPhone or Android without seeing the model for just $249.
The devices were sold in two hours.
Hug de Larauze questioned the so-called innovations created by technology companies, such as the integration of AI, that increase the sticker price.
“What do you do?” he asked. “What changes in your life?”
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Image Source : nypost.com