The used smartphone market is booming! With around 309.4 million units sold in 2023, IDC reported that the market for used smartphones is expected to continue growing at a compound annual growth rate of 8.8%, eventually reaching 431.1 million units in 2027.
One in five smartphones sold was a second-hand device, with Apple and Samsung being the leading brands in the market. This is no surprise given the desirable features these smartphones offer. However, the growth of the market is slower than expected due to a lack of supply since consumers are holding onto their devices for longer periods of time.
As consumers are opting for high-end smartphones in order to use them for longer periods of time before upgrading, businesses are following suit. Managing large Apple smartphone fleets will become more cost-efficient with less frequent upgrades, translating into longer replacement cycles.
This change in consumer behavior will also affect the PC and Mac markets. A number of Mac users are extending the life of their devices, indicating that the TCO (total cost of ownership) advantage of Mac ownership is improving. This is a reflection of Apple’s efforts to make its devices more resilient and improve its services business to generate more predictable revenue.
The lesson for Apple here is to capitalize on the second-hand smartphone market. By extending their existing iPhone Upgrade Program to include second user devices, Apple could generate more business at relatively low risk and cost. This would allow them to grab a bigger slice of the buoyant second-user market, especially as sales of newer devices may decline.
In conclusion, the smartphone market is rapidly evolving, and businesses must adapt to these changing dynamics to ensure cost-efficiency in device management.
– The used smartphone market is growing rapidly, with Apple and Samsung leading the way.
– Consumers are holding onto their devices for longer periods of time, leading to a shortage in supply of used smartphones.
– Businesses are following the trend, opting for longer replacement cycles for device upgrades.
– Apple has an opportunity to capitalize on the second-hand smartphone market by extending its iPhone Upgrade Program.
Q: How will the growth of the used smartphone market affect device management for businesses?
A: As consumers continue to hold onto their devices for longer, businesses will need to adopt longer replacement cycles for device upgrades to ensure cost-efficiency.
Q: What can Apple do to take advantage of the second-hand smartphone market?
A: By extending their existing iPhone Upgrade Program to include second user devices, Apple could grab a bigger share of the used smartphone market and generate more business at relatively low risk and cost.