With the rise in accessibility of the Internet, the demand for latest mobile phones models is also growing up in India. Around 40 per cent out of the total population purchase handsets and wants to change them within a year, according to the latest study by Quikr Bazaar.
The trend to change smartphones very frequently has also opened a large market for refurbished phones. The study added that there is a conscious decision of buyers for buying refurbished phones as close to 50 per cent people are aware that buying refurbished phones helps save the environment.
Apple and Samsung are the most desirable brands in the Indian refurbished mobile phone market.
The study also pointed out that 75 per cent of people are open to spend above Rs 10,000 on mobile phones while a little 3 per cent spend less than Rs 5,000 on buying refurbished mobile phones.
It pointed out that 55 per cent of people are buying new smartphones to stay updated with latest technology. Besides, some 9 per cent people change their handsets because they are either broken or stolen.
Companies like Ingram and HCL, which have already entered the business, are refurbishing old handsets sourced locally and then sell them in the market.
Ingram Micro is also planning to launch the refurbished handsets under its own brand focused on iPhone. Besides, this will help them bypass government restriction of sourcing old phones from abroad.
As per industry estimates, the market for refurbished smartphones in India is around $3-billion with a year-on-year 35 per cent growth, dominated largely by the unorganised sector. Of late, the returned phones, after service and refurbishment in the factories are finding takers in tier-2 and tier-3 cities.
According to Counterpoint Research report, India is the world’s third-largest mobile phone market after China and the US. Smartphone shipments in India grew 18 per cent annually in calendar 2016 compared to the global smartphone market which grew at 3 per cent.
The development was first reported by ET.