A new cell phone every two years? For many people, that was standard for a long time. Always having the latest model from Apple or Samsung was considered an important status symbol. But the prices for premium smartphones have risen sharply recently - due to high inflation, but also the manufacturers’ margin orientation.

Demand for new smartphones is falling, and market researchers at Gartner expect sales to drop by four percent. Used and refurbished devices are increasingly in demand. The provider Rebuy, for example, sold 430,000 used electronic devices via its platform last year.

The specialist for used electronics refurbished around 121,000 smartphones. The year before, there were not even 100,000. “People have less purchasing power, many are practically forced to look at what alternative there is to a new device,” observes Rebuy CEO Philipp Gattner.

Rebuy is not the only provider of used cell phones where sales are increasing. But consumers can’t be sure of getting flawless devices everywhere.

In a representative survey by the price comparison site Idealo, two-thirds of respondents said they were increasingly turning to used or B-goods because of rising prices. This can certainly pay off: Idealo has calculated an average saving on used smartphones of a good 30 percent compared to new devices. Sales of used cell phones of 67 billion dollars

“In previous years, sustainability was more the decisive argument for buying a used device,” observes Rebuy CEO Gattner. “Today, price is also driving customers to us,” he notes.

This is already clearly reflected in the balance sheet figures. For example, in the past fiscal year, Rebuy recorded sales growth of 13 percent to more than 200 million euros. “The potential is huge, we want to continue to grow with the market and are preparing for further expansion,” says Gattner. The company is active in six other European countries in addition to Germany.

The market is indeed promising. Analysts at IDC, for example, have estimated that in 2023 used smartphones alone could generate global sales of around 67 billion dollars. It is not only cell phones from private households that find their way into resale. Old devices are brought to the market in particular by companies that regularly replace their IT equipment.

The specialist marketplace Refurbed, through which dealers can sell used devices, also wants to profit from this trend. Consumers want to contribute to more sustainability, even despite high inflation, says Refurbed co-founder Kilian Kaminski. “Consciously consuming more sustainably is possible and easy, because there are also low-cost alternatives like refurbished devices,” he emphasizes. Refurbed sees that consumers are increasingly demanding cheaper products or products that can be delivered quickly. Many consumers are becoming increasingly aware that supposed technical innovations when changing models, such as higher display resolution, better battery performance and more storage capacity, no longer justify the rising sales prices. Stiftung Warentest names best providers of used smartphones

Last year, more than one million electronic devices were sold via the platform, he said. The company puts the total turnover generated by dealers via the Refurbed platform at “well into the triple-digit millions”.

The top-selling category on Refurbed is smartphones, with the most popular device being the iPhone 12. On Rebuy, Apple Airpods are the most popular product, while among cell phones, iPhone models 8 and 11 are particularly in demand.

There are many ways to buy used cell phones and save money. The cheapest offers are likely to be found on Ebay or Ebay Classifieds. According to Ebay’s Recommerce Report, 88 percent of users of the online portal have bought used items there in recent months. But on these marketplaces, where many products are sold by private individuals, there is no guarantee that the devices are without defects.

It’s important to note that when buying used or remanufactured devices, consumers may have concerns about the quality and reliability of the products they receive. This is where Rebuy’s elaborate technical procedure comes into play. To give customers peace of mind, Rebuy inspects every product to determine if any damage needs to be repaired or if the device needs to be refurbished.

To ensure customer satisfaction, Rebuy provides a 36-month warranty on all of their remanufactured devices. This is well beyond the standard warranty period offered by most manufacturers or retailers, and it shows the confidence that Rebuy has in their products.

Rebuy uses advanced automation and artificial intelligence to inspect and evaluate products at their logistics center in Berlin-Falkensee. With the help of robotics, they were able to analyze and evaluate 85,000 smartphones automatically in 2022 alone.

By automating their inspection process, Rebuy has been able to maintain a lean cost structure and achieve profitability since 2019. This is a testament to their ability to adapt to changing market conditions and provide high-quality products to their customers.

Despite the competition and challenging economic conditions, Rebuy CEO Gattner notes that the company is well-positioned for continued growth. “Now we can earn the money we need for expansion ourselves,” he says.

Here is Rebuy’s careers page.