Contributing factors to the development of the secondhand smartphone market

The purpose of this study is to explore the economic and operational environment factors that are contributing to the development of the secondhand smartphone market. The secondhand smartphone market is a fascinating subject. The market is relatively young, only coming into existence in the last eighteen years after the introduction of the first smartphones. However, it is in recent years that the market has seen massive growth and is considered to hold a great amount of potential for further growth. The case of secondhand smartphones and its growth are intriguing from a circular economy perspective. The example that smartphones represent for product life extension, added value creation and circular flows of consumption via systems of recycling, refurbishing and reselling offer insight into the potential of circular economy frameworks for other industries and product categories. Seeking to understand what factors are contributing to the secondhand smartphone markets development also offers insights for actors, such as businesses, policy makers and academics. Such research enables the various actors to better understand the dynamics of their operating environment. Essentially, understanding what factors are contributing to the market’s development allows actors to make more informed decisions, to develop sound strategy and to allocate resources. This study was conducted as a combination quantitative and qualitative research. A quantitative approach has allowed for the sampling of a population of industry actors and to measure specific concepts, such as economic factors, via a survey. With the procurement of such data statistical analysis has been applied to understand the frequencies, correlations, and significance of the specific concepts under measurement. A qualitative approach has allowed for a more in-depth understanding and context of the survey results or where the survey results have been minimal. The results show a tendency for the business environment to be populated by companies that are vertically integrated, relatively new enterprises and have relatively small annual revenues. Additionally, the results show several clear factors that are contributing to the secondhand market’s development. The factors highlighted include the following: - The price of wholesale stock is not the main point of supply competition. With other sales terms playing such as available volumes, payment terms and stock quality playing a major role in terms of competition. - The improvement over time in the availability of smartphone devices on the wholesale market. - The strong role of relationships and developing long term partnerships. - The low barriers to entry and ease of acquiring secondhand smartphones on the wholesale market. - The growth in business networks and the need for specialization in business acumen and establishing industry wide standards. - Repairability of new models of smartphones is critical to growth and the protectionist position of OEMs. The finding paints a picture of a business environment that has low barriers to entry, generally localized small players.