According to data by the International Data Corporation (IDC), used and officially refurbished smartphone shipments hit 282.6 million units in 2022, representing a rise of 11.5 percent unit growth compared to the 253.4 million units shipments recorded in 2021. It was also estimated by the IDC that the growth will further increase to 413.3 million units in 2026 with a compound yearly growth rate (CAGR) of 10.3 percent from 2021 to 2026. It estimated the market value of the shipments at $99.9 billion.
The agency elaborated that the new and used smartphone global market continues to be driven by trade-in programs. Several new programs have been witnessed across multiple regional markets where Trade-in is still a new concept for local consumers. Moreover, IDC noted that trade-ins are also contributing significantly in developed markets such as America, Canada, and Western Europe towards accelerating refresh cycles through telecommunications and retail-driven promotions. In return, this has contributed to a rise in Trade-in value (TIV), which is typical when demand for new devices is slow.
Nigeria spent $2.35 b on telephone importation in three years.
Conversely, rise in TIV has pushed prices up in the secondary market owing to consumers getting more for their old devices to help drive upgrades. The International Trade Centre (ITC), an organization that focuses on countries’ inclusion and sustainable growth of trade, reported in 2022, shows that Nigeria spent $2.35 billion on telephone importation in a span of three years. ITC noted that Nigeria spent $807.95 million on importation of phone sets in 2019; $765.57 million in 2020 and $772.25 million in 2021. The imported telephone sets included: smartphones, facsimile machines for line telephony, teleprinters, parts of telephone sets, and more.
International Data Corporation (IDC), further noted that the increased sale of higher-priced devices in the new market has also established a circular effect as many of these aggressive trade-in deals featured majorly on premium devices. However, it’s been a questionable scenario for buyers and sellers on how long these aggressive trade-in offers will last in the market. Long prevalent Trade-in offers eventually narrow margins will impact the overall profits of the channel, vendor, or perhaps both.
Used devices show more resilience to market inhibitors.
Research Manager with IDC’s Worldwide Quarterly Mobile Phone Tracker, Anthony Scarsella attributed the 11.5 percent increase in 2021 to the 6.1 percent rebound experienced in the new market for 2021. Scarsella explained that used devices show more resilience to market inhibitors than new smartphone sales as consumer choices remain elevated in many regions. Attractive price points are critical for growth as cost savings remain the primary benefit. However, a high-end inventory struggle owing to elongated refresh cycles in the new market has used smartphone prices to rise over 11 percent in 2022.
On the other hand, Apple Inc., American multinational technology company, revealed that app developers marketing product and services on the Apple store earned over $320 billion as income on their apps in the last 14 years, since the platforms inception in 2008. As contained in Apple’s review of the app store performance for 2022, marks another year of record earnings. Also, this considerable number represents just a fraction of the overall commerce the app ecosystem facilitates. The earnings were paid to the developers between 2008 and 2022.
Apple’s services evolvement recorded in 2022.
The App Store connects developers of all sizes, from emerging sole creators to large international teams, with more than 650 million visitors across 175 regions each week. Throughout the year, new apps and games deliver fresh ways to connect. While speaking on other services, the technology company said 2022 was a big year for Apple Music, which now features over 100 million songs, representing nearly the entire history of recorded music. Apple Music sets a new quality bar for music streaming, giving fans a deeper and more immersive experience than ever before.
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