The used cell phone market in the United States is on the verge of breaking out into something very significant. The next 5 years are expected to be particularly important for used cell phones as the demand for them is set to explode. Let’s look at the facts.
According to estimates made by market experts from Sanford C. Bernstein, the used smartphone market in the United States is estimated to grow from 53 million to 257 million units over the next five years. In fact, analysts predict that by 2018, used cell phones will cannibalize 8 percent of all new smartphone sales, up from just 3 percent in 2012.
This is significant news for the used phone market in the United States, which is led by Amazon and has the likes of the Miami based Stopoint.com offering great service as well. There is a lot of awareness among cell phone users about the trade-in programs offered by carriers and cell phone resellers. The cell phone resale market is a major player today, with resales on consumer marketplaces such as eBay higher than ever before.
A vast majority of US smartphone users expressed interest in getting their smartphones upgraded through a trade-in program recently. The move has the potential to reduce the dominance of retailers and carriers and shift the consumer’s loyalty towards resellers such as Stopoint.com.
But did you know that most used phones that are collected in the United States are resold in emerging countries such as China, India and Malaysia? There is a huge demand for iPhones in these countries. Even in the US, iPhones are the most popular used smartphone brands and command a premium over used Android devices such as the Samsung Galaxy handsets.
The huge demand for iPhones in the used cell phone market is because of the fact that iPhones are very expensive and not everyone can really afford a new iPhone. iPhone users are also known to upgrade more regularly than users of other smartphones such as Samsung Galaxy Note or Samsung Galaxy S series. By trading-in their iPhones, iPhone users can reduce the cost of the upgrade by a lot.
In fact, even broken iPhones are worth something, while broken Android phones are practically useless. So an older used smartphone can be sold at 33 percent of its initial price, with a one-year old phone selling for 50 to 66 percent of its original price. These phones are worth more in the international market than in the domestic market.
Many carriers offer a premium for used smartphones provided they are locked to a contract offered by a competing carrier. AT&T may offer $70 for a used iPhone that is in decent working condition if it owns the contract as well, but it is likely to offer more, say, $130, if it is locked to a competing carrier as that would compel the smartphone users to charge their carrier.
The upside of this is that the smartphone replacement cycles are shorter than ever before, which has had a real effect in carrier smartphone plans and cycles, bringing them down a bit. So this is definitely great news for the consumer.
This information has been brought to you by Stopoint, which is a Miami based reseller of high-end electronics such as MacBooks, Tablets, and Cell Phones. At Stopoint.com, we offer a simple and yet elegant select-ship-and pay system to our customers. We really do understand the true value of your electronics and offer a guarantee that you’ll be funded within 24 hours after we receive your product. So, instead of throwing away your old electronic device, send it to us. We’ll pay for it!