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The rise of mobile phone recycling companies has changed the way the mobile phone market develops. In the early years of mobile technology, each new model often introduced a design, feature or function that changed how people used their devices.
A few well-known examples show how quickly the market once moved:
However, mobile phones have now been around for a long time. Since the launch of the iPhone in 2007, the pace of innovation has slowed. In today’s market, a two-year-old flagship phone can often look very similar to a newer mid-range device.
As a result, owning the latest phone no longer feels as necessary as it once did. At the same time, mobile phone recycling companies have become much better at restoring used devices to a renewed, and sometimes near-pristine, condition.
Several factors are likely to be contributing to the expected decline in mobile phone sales in 2019. Two of the clearest are the lack of major innovation and the increasing cost of new devices.
People are also holding on to their phones for longer. The average user now keeps a phone for up to 29 months before upgrading, compared with 20 months in 2013.
It is not hard to see why. Even loyal Apple customers may hesitate before paying up to £1000 for an iPhone XS after spending around £700 on an iPhone 8 the year before.
Research by Deloitte predicts that at least 10% of the premium smartphones bought new in 2016 will have three or more owners before retirement. It also suggests those devices will still be in active use in 2020 and beyond.
The used mobile phone market itself grew by 10% in 2018. That stands in sharp contrast to the market for new devices.
In addition, well-known high street retailers such as CeX and Game now offer more professionally refurbished smartphones. Because of that, refurbished high-end phones are increasingly competing with new mid-range devices.
As four out of five UK adults now own a smartphone, the market is likely to be close to saturation, if it has not reached that point already.
As budget-conscious consumers look to replace older devices, many are becoming less swayed by the latest launches from Apple, Samsung and Google. Instead, they are increasingly turning to the refurbished market. If the 2007 launch of the iPhone helped create the idea of the “hero handset”, then 2019 may start to mark the point at which that idea begins to weaken.
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