06/11/2024
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It's time to dissect the year's hottest data! Our data team, with its in-house expertise, has meticulously scrutinized the trends to bring you the 2024 price barometer.
Knowing what's happening in the refurbished market is crucial to staying competitive. That's why we've gathered, analyzed and interpreted a wealth of data to provide you with a clear and precise overview of what's happening in your sector.
The aim of this blog post ? To show you the nuances of the refurbished market, the quarterly variations and the explanations for these trends. We'll leave you to discover these analyses just below 👇
Our barometer is based on a precise algorithm that takes into account a wide range of data in real time, in order to provide you with increasingly relevant information. Thanks to our internal data on prices observed on our sales and distribution channels, we can provide you with a monthly view of the market and its evolutions.
In October 2024, the price index for refurbished smartphones shows a 3.54 point decline, which can be analyzed as follows:
- Increase in trade-in flows: the impact of new models releases around the back-to-school period continues to drive a higher volume of trade-ins, resulting in an accumulation of stock for devices to be refurbished.
- Preparation for seasonal commercial strategies: with upcoming sales events such as Black Friday and the holiday season, businesses are building up their inventory to meet anticipated customer demand. This increase in available refurbished products puts downward pressure on prices.
Take advantage of the affordable prices in November to prepare your end-of-year inventory and sales. With the Christmas season fast approaching, now is the perfect time to capitalize on these favorable conditions.
In September 2024, the refurbished price index recorded a decrease of 2.66 points compared to August. This decline can be attributed to several specific market factors.
Firstly, the launch of new smartphone models, such as the iPhone 16, has prompted many consumers to trade in their old devices through trade-in programs, thus increasing the number of devices available on the refurbished market. This temporary oversupply creates downward pressure on prices.
Additionally, some commercial strategies aimed at clearing inventory before these new launches may also have contributed to the price drop observed in September.
Moreover, trade-in programs, which are becoming increasingly common, contribute to this rise. These initiatives, particularly popular during new smartphone launches, increase the supply of devices to be refurbished.
Compared to 2023, when our price index experienced an 11-point drop from January to July, 2024 is following a relatively similar global trend with a decrease of 10.5 points.
After an unusually high March and a spring that concluded with a return to normal market seasonality, July marks a stability in the trends usually observed at this time of year.
So, what are the causes?
It is known that stock management among professionals is conducted based on market trends. In this regard, every year, summer marks the preparation for sales occurring at the start of the school year. This is the period when professionals increase their stock to source refurbished smartphones.
This explains why our index decreases by about 3.15 points between June and July, as the pressure of demand vs. stock weakens over the course of a few weeks.
One question remains: will August bring a new surprise, or will the arrival of the school year stabilize the market?
June 2024
June is marked by a significant increase compared to the previous months: we observe a rise of 3 points between May and June. Indeed, the beginning of the summer season is consistently synonymous with a rise in refurbished smartphone prices. What are the reasons for this?
Firstly, demand has not weakened at the start of summer, putting pressure on prices. The number of consumers interested in refurbished products continues to grow, increasing sales and thus reducing stocks.
Furthermore, with prices having dropped over the past two months, it was the ideal time for professionals to restock in anticipation of the back-to-school orders in September. The law of supply and demand dictates that prices are impacted and are experiencing a rise once again.
Seasonality is resuming its normal rhythm, without slowing transactions so far. It remains to be seen whether next month will see an exponential increase or if things will stabilize later this summer. Stay tuned!
This month, we see a noticeable variation, with a 10-point gap between March and April. While the downward trend seems to stabilize between April and May.
This fluctuation reflects the seasonal dynamics of the refurbished market. Whether you're an industry professional, an informed consumer or simply curious about price trends, this analysis offers valuable insights.
Seasonal fluctuations in the refurbished smartphone market are due to new model launch cycles, post-holiday returns, summer preparation and spring promotions. This combination of factors often leads to a drop in prices in April-May, offering interesting opportunities for savvy buyers and companies looking to equip their teams at lower cost.
The arrival of summer often marks a rise in prices, and we can already observe this in early June. Remain vigilant and keep sufficient stocks while prices are still reasonable.
The first quarter of 2024 drew to a close with a small increase in prices in March, taking our index to 96.88. Rather unusual for the season. What could be the reasons for this rise?
1. Global shortage of electronic chips
2. Strong demand for refurbished smartphones
3. Rising prices for new smartphones
4. Apple changes its policy
The price index of refurbished smartphones experienced a slight decrease in February 2024.
In January, the index was set at 100, which serves as the baseline for 2023 and 2024. In February, the index reached 95.43, a decrease of 4.57 points compared to January.
Several factors can explain this trend:
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Seasonality : the prices of refurbished smartphones tend to decrease in February, after the winter sales period.
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Increased supply : the supply of refurbished smartphones tends to increase at the beginning of the year, after the holiday season.
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Decreased demand : the demand for refurbished smartphones can decrease in February, after the winter sales period.
At the beginning of each year, the refurbished market follows a seasonal trend of price variation, marked by a drop generally observed during the months of January and February.
During these two months, you can expect to see prices for refurbished appliances drop across our various distribution channels.
It's important to note that this price drop is not uniform across all product types. For example, high-end smartphones may experience a steeper price drop than other product categories.
This difference can be explained by various factors :
- seasonal demand.
- available stock levels.
- What can we expect in February? 🤔
The fall in prices seen last month continues into December, and in a more pronounced way 📉.
In contrast to the previous year, this is a period of falling prices.
Two hypotheses are possible :
1️⃣ The arrival of new models at the end of the year leads to reduced demand for previous models, resulting in more affordable prices.
2️⃣ The holiday season stimulates demand for new products, reducing interest in refurbished products and impacting prices.
This lower price is great news for buyers, enabling them to make significant savings by opting for refurbished products.
Prices fall in November 📉
This can be explained by three factors:
👉Inflation persists, impacting French budgets and curbing sales.
👉 Simultaneously, an increase in inventories naturally leads to a drop in prices.
👉 The iPhone 15 is selling better this year than its predecessor, so there's a greater flow of trade-ins feeding inventories.
Traditionally, December is marked by a significant rise in prices.
Will this downward trend in prices continue in December ? 🤔
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