Apple seems to have begun selling refurbished iPhones from its U.S. online store just in time. The refurbished phones are available at the company’s Certified Refurbished site along with Macs, iPads, and iPods.
A new forecast from International Data Corporation (IDC) estimates that the market for used smartphones will grow from 81.3 million devices in 2015 to 222.6 million units in 2020, representing a compound annual growth rate (CAGR) of 22.3%.
“The demand for refurbished smartphones is already becoming constrained in countries such as the United States. Mobile operators are the most constrained given the need for replacement devices for customers who have purchased device insurance plans. In addition, used handsets provide an additional option for customers with subprime credit making them ineligible for equipment installment plans. With the average selling price for a used device expected to be $136 in 2020, the total market value for used devices in 2020 will be an estimated $30 billion,” says Anthony Scarsella, research manager for IDC’s Mobile Phones program.
