Refurbished Mobile Phone Market Poised for Further Growth
- CCS Insight’s survey of mobile phone users in the UK and US reveals growing momentum for refurbished devices.
- Multiple factors will contribute to growth, bringing opportunity for new players to gain a foothold in the smartphone market.
- UK mobile phone users are much more likely to buy online than those in the US.
- People switch mobile operator relatively infrequently, but awareness of text-to-switch regulation in the UK is already strong.
London, 22 January 2020: Today, technology analyst firm CCS Insight released its annual survey of how and why people buy mobile phones and service plans. The research revealed fascinating differences between UK and US consumers as the journey to buy mobile connectivity continues to evolve.
Appetite Grows for Refurbished Phones
A significant 60% of respondents in the UK and 56% in the US would consider buying a refurbished mobile phone next time they change or upgrade their smartphone.
This new-found willingness for pre-owned rather than brand-new phones reflects the steep price of many premium mobile phones released in the past two years. It also signals growing acceptance by consumers previously concerned about the condition and reliability of refurbished mobile phones, as well as greater supply of these devices from resellers. One in six people in both markets said they have bought a refurbished phone in the past.
Kester Mann, director of consumer and connectivity at CCS Insight, comments, “The market for refurbished mobile phones is firmly on the rise. Multiple factors will encourage growth, including the growing residual value of mobile phones, wider options to trade-in or part-exchange existing phones and attractive SIM-only deals. This presents opportunities to new retail players to stake a position in a device market still dominated by sales through mobile operators, both in the US and the UK”.
UK Phone Market Continues to Move Online
Nearly half (48%) of mobile phone users in the UK bought their current device online, compared with just 27% in the US. The result is evidence of the greater strength of mobile carriers in the US, where two-thirds of phones in use were bought in a store. In fact, a third of people in the UK said that nothing would encourage them to visit a mobile phone shop more often.
The role of online is even more conclusive when it comes to researching mobile phones. In the UK, 40% of respondents researched devices this way, twice the number that went into a store (20%).
“The trend toward online purchasing highlights the importance for channel players to invest strongly in their web presence. Offering a best-in-class experience could be a huge differentiator,” notes Mann. But it’s not all doom and gloom for bricks-and-mortar stores. “Our survey also identified many factors that would tempt the majority of people to visit high-street phone shops more often. These include a more welcoming environment, better options to test out mobile phones, more-helpful staff and a wider retail presence”, concludes Mann.
People Switch Mobile Operator Relatively Infrequently
Our survey showed low levels of switching in the UK and US. In both markets, 23% of subscribers have never changed their operator and a further 25% only last did so more than five years ago.
The lack of movement is the fruit of strong and successful efforts by mobile operators to retain subscribers considering leaving, some inertia within the market and generally high levels of customer satisfaction.
In the UK, an impressive 34% of people said they are aware of Ofcom’s text-to-switch regulation, which was only implemented in July 2019. Strong marketing campaigns, mostly by challenger brands and mobile virtual network operators, are likely to have boosted awareness. And significantly, about one in three respondents said they would be more likely to change mobile operator within the next 12 months because of this regulation.
Free Webinar Today
Join us today at 3:00 PM GMT as Kester Mann discusses the findings of the survey in more detail in a free-to-attend webinar with a question-and-answer segment.
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Notes to editors
The research into mobile buying behaviour was completed in December 2019. CCS Insight surveyed 2,193 mobile phone users, split evenly between the UK and US, representative of the population by age, gender and region or state.
The survey explored changes in the consumer journey to buy mobile phones and subscription plans. Leading topics include second-hand and refurbished phones, device trade-in schemes, online and in-store purchasing, device financing and payment and SIM-only deals. The report also explores attitudes to retail, future purchasing intentions and mobile switching.
More details of CCS Insight’s extensive mobile operators and mobile phone research services can be found at: https://www.ccsinsight.com/research-areas/mobile-phones/
About CCS Insight
CCS Insight is a global analyst company focussing on current and future trends in technology. It provides comprehensive services that are tailored to meet the needs of individual clients, helping them make sense of the connected world. Follow @CCSInsight on Twitter or learn more at www.ccsinsight.com.
For further information contact:
Tricia May
Harvard PR
Tel: + 44 (0) 020 7861 3945
E-mail: ccsinsight@harvard.co.uk
