Just Like New: Understanding the Secondary Smartphone Market

Transcription

1 Just Like New: Understanding the Secondary Smartphone Market William Stofega, Program Director, Mobile Device Technology and Trends Anthony Scarsella, Research Manager, Mobile Phones IDC Web Conference 13 June 2017

2 Ecosystem 2

3 Secondary Market Ecosystem IDC Visit us at IDC.com and follow us on 3

4 Refurbishment Process Maintain a steady flow of used devices to process Accurate inspection and testing of each device Data erasure and privacy Proper recycling and disposal handling New packaging and shipping Create a preapproved buyers or reliable marketplace/sales channels IDC Visit us at IDC.com and follow us on 4

5 Major Players IDC Visit us at IDC.com and follow us on 5

6 Consumer 6

7 How Old Is Your Current Smartphone? 4 years or more 3.5 years to 4 years 3 years to 3.5 years 2.5 years to 3 years 2 years to 2.5 years 1.5 years to 2 years One year to 1.5 years Six months to one year Fewer than six months 0% 5% 10% 15% 20% 25% 30% IDC Visit us at IDC.com and follow us on 7

8 What Do You Do with Your Old Smartphone, Once You Get a New One? Recycle it through a munincipal or community recycling program Sell it to recycling such as Gazelle or Glyde Sell it on e-bay Give it to a relative or friend Store it as a replacement device if my new smartphone is lost, stolen or damaged Donate it to a charity or non-profit Dispose of it in the regular trash 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% IDC 2017 Consumer Survey, N = 2,018 IDC Visit us at IDC.com and follow us on 8

9 Price Was Most Important Consideration When Purchasing a New Phone, Followed by Brand Please rank the top features or specifications when purchasing a new phone? Accessory Options Processor Speed Memory Look and Feel Compatibility with Current Carrier Battery life App Catalogue OS Brand Price 0% 10% 20% 30% 40% 50% 60% N= 1286 Price 730 Brand 752 OS 72 App Catalogue 878 Battery life Compatibility with 508 Current Carrier 542 Look and Feel 679 Memory 496 Processor Speed 111 Accessory Options Source IDC U.S. Consumer Smartphone Survey, 2017 Results, 9

10 What Brand Is Your Pre-owned or Refurbished Smartphone? Source: IDC 2017 Consumer Survey, N =

11 Do you own, or have you purchased, a refurbished or pre-owned smartphone? Don't know 2% Yes 16% No 82% IDC 2017 Consumer Survey, N = 2,108 IDC Visit us at IDC.com and follow us on 11

12 Enterprise 12

13 Response Count IT Budget Overview Q. Where is most of your IT budget going today? Where do you expect most of your IT budget will go in 2016? (Please select your top three.) IDC 2016 Commercial Survey, N = 502 IDC Visit us at IDC.com and follow us on 13

14 How Often Does Your Company Replace the Smartphones Purchased for Its Employees? 0% 10% 20% 30% 40% 50% 60% 1 To <2 Years 2 To <3 years 3 To <4 years 4 To <5 years 5 To <6 years 6 To <7 years More than 7 years N=444 IDC Visit us at IDC.com and follow us on 14

15 Forecast 15

16 Worldwide Used Smartphone Shipments, Shipments (millions) North America ROW IDC Visit us at IDC.com and follow us on 16

17 Worldwide Used Smartphone Shipment Share, Shipment Share North America ROW IDC Visit us at IDC.com and follow us on 17

18 Worldwide Used Smartphone ASP, ASP North America Rest of World IDC Visit us at IDC.com and follow us on 18

19 Worldwide Used Smartphone Revenues, ,000.0 Revenue 30, , , , , , North America Rest of World IDC Visit us at IDC.com and follow us on 19

20 Key Forecast Points Beyond the consumer market, we believe corporate IT managers will look to used phones as loaners or replacements. Successful resellers of refurbished smartphones will look to give their retail customers options and clarity when it comes to technology. The secondary ecosystem is highly fragmented with big and small suppliers. However, we expect consolidation to increase in the next three years. OEMs will create or enhance existing programs for secondary device sales. Although concerns regarding impact of the secondary market on sales of new devices are justified, OEMs should look to refurbished devices as a brand introduction strategy that offers services- and brand-specific applications to the customers. IDC Visit us at IDC.com and follow us on 20

21 Key Research The U.S. Smartphone Secondary Market Opportunity, an IDC MultiClient Study, Results Available July 30, 2017 Worldwide Used Smartphone Forecast, (IDC #US , October 2016) U.S. Consumer Smartphone Survey, Results (IDC #US , February 2017) Worldwide Smartphone Forecast, (IDC #US , March 2017). Worldwide Smartphone Market Shares, 2016: Crisis and Recovery (IDC #US , May 2017) IDC Visit us at IDC.com and follow us on 21

22 Questions? William Stofega Program Director, Mobile Device Technology Anthony Scarsella Research Manager, Mobile Devices IDC Visit us at IDC.com and follow us on 22