Market Challenges And Opportunities

Factors driving growth of smartphone aftermarket

Increasing adoption of repairing services and refurbished smartphones are major factors that are expected to drive the growth of smartphone aftermarket over the forecast period. Demand for smartphone repair services is expected to grow owing to fragile smartphone screens, short battery life, and other parts that make smartphones more susceptible to repair. Further, expensive smartphones are repaired rather than replaced. The smartphone repair industry is expected to experience growth over the forecast period, owing to rise in adoption of expensive smartphones among users.

Refurbish mobile phones is also expected to drive the growth of smartphone aftermarket. These phones usually have minor defects and sold at lower prices. Several wholesalers are selling their electronic products at low cost, with after sale services and decent warranty periods.

Restaints

However, consumers tend to replace cellphones rather than repairing their mobile devices due to rapid advancement in technology and falling prices of smartphones. Falling prices have supported demand for new smartphones. An expected rise in consumer income over the next five years will encourage consumers to replace their smartphones rather than repair it.

Also, consumers have preconceived notions about the quality of refurbished products and avoid purchasing these smartphones.