The Circular Summit 2024, held in London on October 22nd and 23rd, brought together key players and pioneering companies in the circular economy. This crucial event for the industry saw participation from iRepack, a leading company in the used mobile device market in Spain.
Our Manager, Santiago, attended the event, and although he didn’t directly participate in the panel discussions, he took the opportunity to share iRepack’s experience in the secondary market. In particular, he highlighted how our offer of used devices is helping both consumers and the planet.
During the event, the importance of fostering collaboration among market players, such as manufacturers, retailers, and refurbishment companies, was emphasized to ensure a more sustainable life cycle for mobile devices. This collaboration not only helps reduce electronic waste but also allows consumers access to high-quality technology at more affordable prices. The importance of transparency and trust in the supply chain was also highlighted as fundamental elements for building confidence with end consumers.
iRepack’s participation in the Circular Summit underlines our commitment to the circular economy and sustainability, while also allowing us to stay at the forefront of industry trends and challenges.
The Growing Importance of the Used Device Market
The used mobile device market is growing rapidly, and the Circular Summit 2024 confirmed this trend. This market is being driven by several factors that benefit both consumers and the environment. One of the most significant aspects is the increasing concern for sustainability. In fact, according to data presented at the event, 26% of people who purchase used smartphones do so because of the sustainability impact.
Another notable trend is the importance of the organized market, where companies like iRepack play a key role. The organized market accounted for 64% of the total European secondary market in 2023, offering devices with warranties and superior quality compared to peer-to-peer platforms, which make up the vast majority of the unorganized market. This translates into greater trust for consumers, who can access refurbished devices with a guarantee of quality and transparency.
Another relevant fact we took from the conference is the average replacement time for smartphones. In Spain, the UK, and the United States, people use their smartphones for an average of three and a half years before replacing them. In Germany, they use them for close to four years. Furthermore, in Spain, only 30% of people replace their mobile phones before two years of use. The time people keep using their mobile phone has been increasing compared to previous years, which reflects the greater durability of the devices and the fact that new models being launched do not have significant differences compared to older ones, as was the case ten years ago.
The growth in sales volume in the European market for second-hand smartphones is also a factor to consider. In 2023, the market reached 85.9 million units sold, showing growing consumer interest in choosing quality devices at a competitive price.
However, despite this growth in volume, the value of the European secondary smartphone market saw a 5% year-on-year decline in 2023, indicating that while sales are increasing, average prices are dropping due to greater supply and competition.
Challenges and Opportunities in the Market
While the used device market offers great opportunities, it also faces significant challenges. One of the most notable is the need to adapt to technological changes, such as the transition to eSIM in new smartphone models, which presents a barrier for the secondary market, especially in Europe. Additionally, the new EU legislation requiring USB-C adoption, set to come into force at the end of 2024, could impact the supply and pricing of used devices, something market players will need to adapt to quickly.
Nevertheless, the opportunities are numerous and promising. Cumulative sales of used devices are estimated to reach $442 billion between 2024 and 2028, a figure that highlights the market’s potential. Moreover, there is a significant opportunity to educate consumers on the benefits of opting for used devices, not only in terms of savings but also in reducing environmental impact.
iRepack: Leading the Shift Towards Responsible Tech Consumption
At iRepack, we are committed to leading the shift towards more responsible tech consumption. Our participation in the Circular Summit 2024 reflects our efforts to boost the refurbished device market and continue improving our processes to consistently offer the highest quality to our customers.
We believe that the used device market is not just an economic alternative for consumers but also a key solution to addressing the environmental challenges we face. Every refurbished smartphone is a step closer to reducing waste and efficiently using resources.
Take advantage of all the benefits of guaranteed used devices and contribute to a more sustainable future.
To keep promoting responsible tech consumption, we are about to launch our new online store for the B2C market, irepackoutlet.com.
