The global market for refurbished smartphones is currently estimated to be around $20 billion, and is expected to double to $40 billion by 2025. In developed countries, 150 million of such devices are sold per year. This is approximately 10% of the market for all smartphones.
The process is especially developed in the USA. One in five smartphones sold to Americans in 2018 was refurbished. At the same time, while sales of regular smartphones are falling for the seventh quarter in a row, the market for refurbished devices is growing (data from CounterPoint Research).
But buyers, especially from Russia, are still wary of such offers. Let's look at what such “refurbished” devices actually are, who they take them from, and how risky it is.
What is Refurbished?
Refurbished is the official name for any electronics that has been returned by a previous owner and refurbished for resale. This is the type of sign that users will most often encounter on English-language websites.
The first thing you need to know is that such smartphones are not new, but this does not mean that they have been used at all. In the States, anything that was taken out of the box is considered “not new.” If a person has used the device for at least a couple of hours, that’s it. It can no longer be legally resold as new. The gadget goes into the refurbished category, and loses at least 10-15% in price. For expensive smartphones or laptops this is hundreds, sometimes thousands of dollars.
The average return time for goods in the US is 30 days (depending on the state and store; Walmart and Target generally have 90 days). So an American can use the device for a month, and then, if he doesn’t like something or something newer comes out, return the device to the store and get all the money back. And the product will be sold at a discount in the future.
Can you tell the difference between these iPhone 7 Plus smartphones?
They are both refurbished, the top one is from eBay, the bottom one is from Amazon . Large companies like Samsung regularly hold promotions when new devices are released in America: return your previous Samsung gadget and get a new one at a very big discount. This is how they instill in customers love and loyalty to their brand: when a new flagship comes out, you don’t feel like you were deceived. And the assembled devices end up on the “repaired” markets - although they didn’t even have to be repaired, only diagnostics of the operation of all functions. Many people who join the mobile company’s “family plan” also have similar conditions for updating devices.
It is impossible to understand why the smartphone was returned and how long it spent in the hands of the previous owner. But, by definition, a refurbished device should work like new. It may have abrasions (this is written in the description), but nothing should affect its operation. Before they are put on sale, all refurbished devices are checked and tested by specialists. If the final device does not work like new, then it is not refurbished, and this is a scam.
There is a big difference between "Refurbished" and "Used". In the second case, this means that the device has been used and is being sold in the same condition. For example, this can often be seen in listings on eBay. Such a device has not been rechecked or repaired, and there is no warranty for it (for refurbished devices there is usually a warranty of six months). Devices with the Used tag are sold much cheaper, by 30-40%. But this is buying a pig in a poke. If the seller has a high rating, if it is a respectable store or an old user of the site, you can try your luck. But then there will be no one to complain to.
What device is called refurbished?
Sometimes buyers return the purchased phone within two weeks. The reasons for such an action can be objective and subjective. The first one should include the presence of a defect, and the second one should include a design you don’t like, problematic characteristics, and so on. Therefore, when talking about what a refurbished phone means, it should be noted that these are the devices that are called that way.
Sometimes those smartphones that were deformed or lost their functionality and were subsequently restored in the factory workshop are included in this category. In this case, spare parts are used only from the manufacturer, and repairs are carried out in special service centers. Such devices can be called refurbished.
What they check
A standard smartphone test upon return includes checking the battery (is it charging? holding a charge?), as well as checking the operation of buttons and cameras. The seller also evaluates sound quality and screen responsiveness, and whether the phone connects to Wi-Fi and 3G/4G. Under the Data Protection Act, he is also required to erase all information from internal storage. You don’t have to wait for photos of someone else’s naked butt in the “Gallery”.
Some sellers of refurbished devices also update their smartphone or tablet to the latest version of the operating system that runs on it.
If a smartphone has fallen into water and is in excellent external condition, but the hardware inside does not work, there are times when all its internal parts are replaced. In this case, by the way, the red sticker sensor, which indicates that the phone was damaged by water, is often not replaced. The device will be fully operational, but with a reddened sensor inside. This is useful to know so that there are no warranty issues later.
Broken water sensors
A normal Refurbished smartphone must be tested and cleaned (both outside and, if possible, inside). Any part that may not be working must be repaired or replaced. Most often this is a faulty LCD matrix or a cracked case.
Gadgets are also sometimes given a new battery, although even for older smartphones this is rather rare.
Advantages and disadvantages
Having figured out how to check whether an iPhone is refurbished or not, it’s worth considering the pros and cons of buying the seller refurbished variety.
Such devices have the following disadvantages:
- No manufacturer's warranty.
- Due to the low quality of parts, such smartphones can perform poorly or break quickly.
- The phone may be stolen, and this can lead to problems with law enforcement agencies or blocking of the device's operating system.
As for the advantages of purchasing such an iPhone, the only thing that falls into this category is its lower cost.
Different stages
All refurbished smartphones receive a rating indicating their condition. Unfortunately, there are no independent standards here. Each store has its own ratings, sometimes there are none at all. It doesn't hurt to check the scale before purchasing.
But in general, as a rule, in large online stores, ratings go from A to D and mean something like this:
- A. Perfect condition, practically a new device. Almost always - a smartphone returned before the 30-day period has expired.
- B. Almost perfect, but with a scratch or scuff. Maybe the battery lasts half an hour less than it should.
- C. A few minor flaws. You can see from the phone that they were working on it.
- D. There is some kind of damage or the device looks frankly worn. Most often, for example, the selfie camera or some other part does not work. Not recommended for purchase.
Smartphones in the workshop, with ratings
Also, even more often, there is a division into who specifically worked on the device. There are only two categories here:
- Manufacturer Refurbished. Such a die means that the manufacturer . It is considered a much more reliable option: companies like Samsung, Lenovo, HP, Dell or Apple do not need to sell refurbished smartphones “just to sell”, they are already doing well. If they say that the device is suitable for work, then there is no doubt about it. The warranty for such devices is usually 12 months.
- Seller Refurbished – this means that the device was restored by the seller . That is, a store (or, as happens, even a private master) that has listed the device on Amazon, Newegg, Walmart or eBay. Obviously, it’s important to him that it sells. Quality control is not that high. Damage estimates may be underestimated.
How to distinguish a refurbished device from a used one
Quite often, out of ignorance, a refurbished iPhone is compared with a used device. However, this is not quite true.
- A refurbished iPhone is actually new. Therefore, it does not and cannot bear any traces of use or activation. It is covered with factory protective films and is fully equipped.
- During repairs at the manufacturing plant, faulty iPhone parts are always replaced with new ones. When you open such a device inside, you will not see any traces of soldering, gluing or other repairs.
- This smartphone is covered by a manufacturer's warranty that lasts 1 year. Therefore, if a restored iPhone does not work, it can be sent to an official service center for repairs or replaced within the 14 days required by law.
Your rights
When purchasing a refurbished device, you have the same rights as with a new one. The product must be of adequate quality, capable of performing its intended purpose, and consistent with its description. If there is a problem with it that was not disclosed in the description, you can get a full refund. But if the defect was indicated (for example, it was written “showing signs of wear” = “shows signs of wear”, and you found a couple of abrasions), the seller has the right to refuse a return.
Such refurbished gadgets, especially smartphones, are often ordered through us, Pochtoy.com. In this case, the functionality of the device can be checked upon special request. You make a request through tickets, pay a few dollars, and a warehouse employee checks that the device works. If not, you can always send it back and get your money back. This happens rarely, but the money is always returned; in our experience there have been no other situations.
If the gadget is quite expensive or you have some suspicions (for example, it costs a penny, or the seller on eBay has few reviews) - this is the only option to calm down a little and make sure that everything is in order. Although much more common, for example, is a weak battery. And there is no way to really check this in the warehouse.
In general, the price usually includes, plus or minus, the percentage of defects. Conventionally, if it is 3%, the cost of the device is reduced by 20%. If 5% - by 50%, and so on. But often small or start-up companies working through Amazon or Newegg greatly reduce the price even if the devices are in perfect condition in order to gain reviews and a user base. Also, visual defects in the US reduce the price disproportionately. If there is a noticeable scratch or dent somewhere on a smartphone, they give a discount as if it was working on its last legs.
Two unexpected minuses
- A cable or charger must be included with the repaired device. But other accessories, including even instructions, are not guaranteed. If the original gadget came with headphones, but the description of the restored smartphone/tablet says nothing about them, you can mentally prepare yourself that they are not there.
- You will almost certainly not receive the original packaging. It was already open, the device was already taken out from there. Refurbished gadgets in the USA usually come in simple cardboard boxes or, at best, in boxes with the seller's logo. You won't get that pleasant feeling of unboxing a new smartphone.
How much do such devices cost today?
Having dealt with the main distinctive properties, let’s consider how much a refurbished iPhone 7 costs. According to official requirements, in all its branded stores the price of a “like new” smartphone is 15% lower than an absolutely zero device.
For example, in the USA today the official price for such a device (excluding VAT) is $379 for 32 GB or $469 for 128 GB. For comparison: the new “sevens” with the same parameters cost 449 and 549 bucks, respectively.
In other countries, taking into account import tax, VAT and surcharge, the cost of the devices will be higher. But those 15% difference should remain. This is the policy of Apple and its resellers. Other sellers are free to set their own prices.
For the Russian Federation, today the cost of an iPhone 7 (128 GB), which has undergone restoration, is $529.89. A new one, accordingly, will cost $677.12, that is, the same fifteen percent difference.
Where can I get it?
eBay. Until now, most of the “old” devices come to us from here. We don’t even know why – Russians are not indifferent to this site. Well, to be fair, this is the most convenient filter for old devices. You can even specify what type of restoration you want - Manufacturer Refurbished or Seller Refurbished. More than ten thousand offers, there are even phones from the last century.
Amazon. It entered into competition with eBay in this field in September 2017, launching a new section, Amazon Renewed. In general, these are more curated devices, and come with a guarantee from Amazon (90 days from purchase). A lot of categories, not only smartphones, but all devices in general. Save up to 40%.
Newegg and B&H. Top American electronics stores. There are not many offers here, but the prices are lower. Newegg sells both from itself (almost never a problem here) and from third parties. B&H sells only on its own behalf, you can trust the quality, but there are almost always cameras.
BackMarket. A popular store that sells only refurbished electronics. All devices have a minimum six-month warranty. Discounts 40-70%, depending on the condition of the device. Here under each device there is a scale - from “Shiny” (brilliant!) to “Stallone” (Sylvester Stallone, yeah). The higher the level you ask for a device, the more you pay. This is also very convenient for sellers: they don’t have to post a ton of different ads or try to put all devices under the same brush. They simply sort through refurbished devices, and buyers choose what they like best.
MacBook Pro on BackMarket
Apple. The official website also has its own section. iPhone, iPad, smartwatches, laptops and everything else. Full one-year warranty, promise “just like new.” But the discounts are not that big - about 20%.
Samsung. Since 2016, Samsung has directly sold refurbished devices in the United States. The discount on some smartphones is up to 70%, but by default they are connected to one of the American mobile networks.
Walmart. Lots of options for refurbished equipment, repairs from the seller. Mostly smartphones are unlocked, without being tied to any specific network, like Samsung and often Amazon.
Lenovo. The company is actively developing its representative office in the USA, with discounts and promotions almost every day. Hundreds of devices, mostly laptops, are restored by the company itself and sold at a 40-80% discount.
Dell. This American company went even further and opened a separate store to sell refurbished goods. Almost all Dell equipment is sold here, with rare exceptions. Projectors, monitors, laptops, desktops, printers. 100 days warranty. There are even promotions on already cheap goods. A VPN may be required to access the site.
Swappa. Large and curated online message board. The warranty is usually a month or two. The store checks each seller, asking for photos and IMEI on smartphones (to make sure it's not stolen). Payment only with PayPal. The site is popular among repairmen because it is easy to register and does not take a large percentage. Allows you to communicate with sellers, which is what they mainly use: they ask what’s wrong with the battery, clarify the serial number, and bring it to light. Not recommended for first purchases.
When to take
The best time to buy used phones is the next two to three months after the release of a new model. During this time, people just have time to hand over their old device, it undergoes inspection, repair (if necessary), and is put up for sale again. After the release of the new iPhone in October-November, the market is flooded with hundreds of thousands of all previous models of Apple and even Android smartphones.
The second best time is after Christmas, in January. Many people receive a new gadget as a gift, and a few days later they take it to the store to get everything in money (in the USA this is not such a taboo as in Russia). Prices for refurbished devices are reduced, and the quality is much higher.
One of the reasons for the growth of the market for refurbished devices is tech. Companies have recently decided to make software that works even on older versions of gadgets. Apple does this best: iOS 12, for example, runs easily on the iPhone 5S from 2013. If you want to get most of the new features or access to the latest games, you don’t have to buy the most modern flagship; you can buy something several times cheaper.
The rising price of annual new products and the lack of real innovation in them also repels some users. And many simply prefer the previous versions. For example, many journalists used the 2012 MacBook Pro because it had an older-style keyboard that was more responsive and comfortable. And the 2016 iPhone SE was Apple's last "small" smartphone, with a 4-inch screen rather than the 5.8-6.5 inches of the newer models.
Who restores phones?
The manufacturer itself or unknown who (private service centers, Chinese sellers, etc.). Among major manufacturers, only Apple officially sells refurbished phones. This is not surprising: iPhones are expensive, and an “almost like new” iPhone at a reasonable price is a tasty morsel for Apple lovers. Last year, Samsung decided to follow in the footsteps of Apple, but their refurbished handsets are not yet supplied to Russia.
Photo – cultofmobile
An officially restored iPhone 6S 16GB can now be bought in communication stores for 22 thousand rubles. At the same time, new ones are available in dubious online stores for at least 25 thousand, in reputable ones - for 33-34 thousand. The iPhone 7 model already costs almost 40 thousand rubles. The difference for those who want to save money is serious. Refurbished iPhone 7s went on sale only last month and have not yet reached Russia. In the US, refurbished “sevens” are offered for $499 (32GB version), $50 cheaper than the same new ones.
Photo - BGR
