Cashify has release its latest survey on the second hand smartphone market. Surprisingly, Apple dominates. In fact, Cashify still sells the iPhone 7, which was launched in 2016, at over Rs 10,000.
India’s second-hand smartphone market is dominated by Xiaomi and Apple, according to the ‘User Sentiment Survey’ conducted by Cashify, best known as a marketplace for refurbished phones. Apple’s dominance is surprising since the tech giant has a very low market share in India compared to other brands. “Every year Apple, while it has only 2% market share in the new phone segment, is number two in the second-hand segment. It has a strong brand pull,” Nakul Kumar, co-founder and chief marketing officer at Cashify India, told indianexpress.com.
He pointed out that the social status attached to the iPhone brand is what makes a big difference. Cashify still sells the iPhone 7, which was launched in 2016, at over Rs 10,000, and that’s something no brand can achieve. “The phone is more omnipresent as a social symbol for today’s generation. I think that’s the reason why Apple remains on the top,” he explained. Another reason why Apple dominates the second-hand smartphone market is that many people can afford to buy its products years later when the prices come down.
According to the survey, while Metro cities such as Delhi, Mumbai and Bengaluru top the list of customers selling their older phones, cities such as Ghaziabad, Ahmedabad and Lucknow are up-and-coming in the segment. The data also shows that OnePlus has also become a popular choice for customers looking to get a premium device at a budget price, and Realme is also growing fast in the segment.
On Xiaomi’s market share, Kumar said this is due to the volume of phones the brand sells. “Xiaomi tends to be in the Rs 8,000 to Rs 15,000 bracket, and the number of devices in the ecosystem is pretty high. People tend to switch these phones in under a year, and then they are available for the second-hand market to consume. Samsung occupies the third position, which also reflects their market leadership in the new phone market,” Kumar added.
Cashify co-founder Nakul Kumar.
Some popular models sold back to Cashify include the Apple iPhone 7, Redmi Note 5 Pro, Redmi Note 4, Apple iPhone 6, and Apple iPhone X. Cashify’s survey also showed that 78 per cent of people who bought a second-hand or pre-owned smartphone had an income of less than Rs 30,000. It estimates that 90 million second-hand smartphones were added to the Indian market in 2021 alone.
According to Kumar, going offline, though they also have an online store, has helped them provide better trust in the refurbished space. “We provide six months warranty. So the ASP is higher when we are selling directly. On average, we sell between Rs 14,000 and 16,000 in the second-hand market. We are also selling accessories with warranty and service guarantees,” he explained.
But he also stressed that the refurbished market is not limited to budget devices. Cashify also claims to have sold phones worth Rs 1 lakh from its store
It claims more users have accepted refurbished phones in the past two years. “More and more people are okay with second-hand refurbished phones because the value it provides from a price point vs specs works for everybody. There is a huge chunk of the population who are still on feature phones and want to upgrade to smartphones, but can’t afford it,” he pointed out.
He stressed that consumers sometimes want a better screen or camera experience, which they can provide. The reason is that some new budget phones (under Rs 8,000) come with poor specifications and experiences. In such scenarios, a refurbished phone does the job better. “While a user’s typical functioning or requirements would be WhatsApp, the screen experience, visibility and touch work better on a refurbished handset,” Kumar pointed out.
Cashify is also selling second hand phones via its offline stores.
In his view, people are willing to pay the extra for Cashify’s edition of warranty and service. Cashify gives a six-month warranty on these refurbished devices, though it plans to offer an extension for up to two years.
Source:indianexpress.com