Increased Demand for Refurbished Smartphones has Increased Demand for Smartphone Aftermarket Services

 

Smartphone Aftermarket

The smartphone aftermarket is the secondary market of the smartphone industry, which deals with the manufacturing, remanufacturing, distribution, and retailing of all smartphones and their accessories. More than half of the global population own smartphones. Smartphones have substituted technologies such as landline phones, expensive cameras, and desktop computers. Smartphones have become more affordable and the industry has outpaced PCs and consoles as the largest mobile gaming category.  Thus, worldwide smartphone sales have increased.

Over the past decade, the booming smartphone market has created a correspondingly thriving handset repair industry across most countries. In the past few years, smartphone penetration has increased in both developed and developing regions, as well as the smartphone market has reached market maturity in some countries. The rise in smartphone usage has created a rapidly growing smartphone repair industry. Increasing popularity of smartphones with large display has increased the demand for smartphone aftermarket services.

Moreover, increasing demand for refurbished smartphones and lower prices of repair devices has increased the demand for smartphone aftermarket services. Refurbish phones usually have minor defects and sold at lower prices. Increasing internet penetration and technological advancements have also increased the demand for aftermarket. Internet in Japan provides high quality services to more than 90% of the population and almost 100% of medium to large businesses. In Japan, there were 116.5 million internet users in Jan. 2020.

Furthermore, the European Union is working on a proposal to force smartphone vendors to use easily replaceable batteries with their devices. The European Union aims to reduce e-waste by allowing users to replace worn out or malfunctioning phone batteries. However, due to falling smartphone prices and the rapid advancement in technology, consumers replace their mobile devices instead of repairing them. Whereas, in many countries, people prefer to repair and refurbish their mobile devices, which is adversely affecting smartphone aftermarket services.


Location: India

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