Preowned tech: market for used devices keeps growing
Preowned laptops and phones are making up a fair share of the market, with buyers and sellers increasing
Apple products reseller iStore plans to open more outlets in malls outside major cities as it ramps up its stock of refurbished devices, which is much in demand from cash-strapped consumers.
In November, iStore opened its first township outlet at Maponya Mall in Soweto.
“We have ambitious plans in retail expansion to get into malls we have not traded in before and expand the sale of preowned devices. We are bullish about the business and expect big growth out of this,” iStore CEO Chris Dodd told the Sunday Times.
iStore has 32 shops and for every new store 15 to 40 new jobs are created, depending on the size of the store.
Dodd said there has been a significant increase in trade-ins of old devices for a discount when purchasing a new device. Those preowned devices, including iPhones, iMac laptops and iPads, are refurbished and sold to customers who can’t afford new devices.
“iStore has seen a growing trend in which customers are moving away from funding their device through a cellular contract, by using iStore’s high trade-in values to buy an iPhone outright. With our new trade-in values, customers can upgrade to the latest iPhone 15 while significantly reducing the financial commitment that comes with a long-term cellular contract.”
Given the tough environment “we particularly need to work hard at keeping the company growing. Customers are finding it very tough on the wallet, and we have to find interesting and creative ways of assisting them in buying what they need.” Trade-ins are up just more than 20% year on year.
“Preowned devices are in high demand and the nice thing is that it opens up the market. For example, students who may not be able to afford the latest iPhone 15 can buy preowned models, and then hopefully in a year or two, once they’ve qualified and got a job, they’ll become the new iPhone 15 [owners]. So I think it’s done a great job of opening up the marketplace and letting people access Apple products in a way they would never have done in the past.”
According to global mobile industry association GSMA, the refurbished mobile device market is expected to be worth more than $140bn by 2030, compared with $50bn in 2020. More than 5-billion mobile phones,
The company ensures that the devices that are traded in are legitimate and not stolen; sellers must provide proof of ownership
currently sitting unused in desk drawers around the globe, are being targeted for reuse or recycling as the industry aims to develop a more “circular” supply chain for smartphones, it said. While demand for new devices remains high, there is evidence of a budding circular economy — 11% of smartphones sold worldwide are refurbished and the market is increasing.
TechMarkit, a local start-up selling preowned phones and laptops, has also recorded increased demand for preowned devices. “We are trying to get people who can’t afford a new computer or cellphone access to those devices at affordable rates. And we want to try to get computers and phones into as many hands as possible in South Africa,” said CEO David Hirsch.
The company ensures that the devices that are traded in are legitimate and not stolen; sellers must provide proof of ownership, he said.
TechMarkit, which started as an online retailer, opened its first store in Rosebank, Johannesburg, in May last year. In September it opened a second store in Menlyn, Pretoria.
It also lends laptops to clients for a refundable amount of R500. Hirsch said some of the refurbished laptops are lent to clients needing them on a temporary basis.
The company’s Laptop Library Programme is part of its strategy to make technology accessible to everyone by removing the cost barrier.
“The Laptop Library Programme is our way of contributing to the community and supporting students who are facing financial difficulties and anyone who needs access to a laptop,” Hirsch said.
The company is not making money out of the programme as the amount is fully refundable upon the return of the laptop, as long as it’s in good condition.