Gen Zers are increasingly turning to refurbished smartphones rather than purchasing brand new models, citing incremental improvements between phone versions as a reason for opting for cheaper options. Anmol Aroz, a 23-year-old IT sales worker, saved $650 by purchasing a secondhand iPhone 13 Pro model, and expressed a lack of interest in the latest features of new smartphone models. Similarly, Amy Maty Conrad, a 34-year-old Washington, DC resident, prefers refurbished smartphones as she primarily uses her phone for basic functions like calls, emails, and work, rather than for cutting-edge features.
Despite the launch of the iPhone 16 with advanced capabilities, sales disappointed after the first weekend, with a 13% drop in pre-sales compared to the iPhone 15. However, the refurbished phone market has seen growth, with a 5% increase from 2021 to 2022, and projections suggest a further 13% annual growth through 2032. Apple holds a significant share of the resale market, and experts anticipate a shift towards more adults purchasing refurbished models and repairing their current devices instead of buying new ones.
Thibaud Hug de Larauze, CEO of Back Market, a secondhand technology company, predicts that a majority of adults will be purchasing refurbished models within the next decade, emphasizing a trend towards consumers valuing cost savings and sustainability over new features. Back Market, which recently announced its first profitable year in 2024, has amassed a customer base of 15 million, with a significant portion being repeat customers who prioritize savings over specific phone models.
Back Market’s success is highlighted by a recent promotion in which customers were offered a blind box experience to purchase a secondhand iPhone or Android for $249 without knowing the specific model. The promotion sold out within two hours, indicating a preference among consumers for affordable refurbished options over new, expensive devices. The CEO questions the necessity of certain new features touted by tech companies, such as AI integration, and emphasizes the lack of significant changes these innovations bring to consumers’ lives.
Overall, the trend towards purchasing refurbished smartphones reflects a shift in consumer attitudes towards sustainable, cost-effective consumption habits in the tech industry. With growing concerns about electronic waste and the lack of significant innovation in new smartphone models, many consumers are opting for refurbished options that offer similar functionality at a fraction of the price. Companies like Back Market are capitalizing on this trend, anticipating continued growth in the refurbished phone market and a shift towards more sustainable consumer behavior in the coming years.
