Q1 2024 ends with a price increase: what's driving the market?
The first quarter of 2024 concludes with a slight price increase in March, pushing our index to 96.88. This is rather unusual for this time of year. Let's explore the possible reasons behind this rise:
1. Global chip shortage:
The ongoing chip shortage continues to disrupt the production of new smartphones, decreasing supply and increasing prices. According to TrendForce Corporation , chip prices increased by an average of 11% in 2023.
This shortage also affects the refurbished smartphone market, as older model stocks diminish and prices consequently rise.
2. High demand for refurbished smartphones:
The demand for refurbished smartphones has been growing in recent years, as consumers seek more affordable options. The global refurbished smartphone market reached $124.5 billion in 2023, according to Counterpoint Research , and the firm predicts a 17.1% growth for 2024.
This trend has been further emphasized in 2024 with the rising cost of living and inflation.
3. Rising prices of new smartphones:
The increasing price of new smartphones pushes consumers towards refurbished models. The average price of a new smartphone reached €487 in 2023, according to a study by HelloSafe.
This puts additional pressure on refurbished smartphone prices as demand increases.
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4. Apple's policy change:
苹果 relaunched its online refurbished phone store in March 2024.
Apple's policy is to set higher prices for its refurbished products compared to its competitors. SellCell.com analyzed the prices of over 10,000 refurbished smartphones on major online marketplaces. The study revealed that refurbished iPhones were on average 23% more expensive than other brands.
This has had an impact on the overall refurbished smartphone market, as other players tend to align with Apple's pricing.
?? Our price index: a powerful tool for tracking trends
Our price index is a powerful tool that allows you to track the evolution of refurbished smartphone prices sold on Dipli.com. It is calculated using a base index of 100, meaning the starting value is set as 100. Then, prices at each subsequent period are compared to this starting value.
Using a base index of 100 offers several advantages:
Our price index is a trend indicator. It does not predict future price movements.
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CEO @ PrologMobile | Co-Founder, Board
10 个月Great market observations Dipli - “The global refurbished smartphone market reached $124.5 billion in 2023, according to Counterpoint Research, and the firm predicts a 17.1% growth for 2024.”