Not just new, even refurbished iPhones flying off the shelves

NEW DELHI: It’s not just brand new Apple iPhones that have seen sales zoom in 2015 – there’s been a surge in refurbished devices, too. Smartphone refurbishers such as Greendust recorded a 40% jump in sales while Overcart saw a doubling of orders of the iconic devices. Such companies are now hoping that the government gives the go-ahead for the import of second-hand, certified iPhones.

As a highly aspirational brand and mostly out of reach for a large majority of Indian buyers, second-hand or pre-owned Apple phones are highly sought after devices. The iPhone 5 series – 5s and 5c – followed by iPhone 4, 4s and iPhone 6 are some of the most in-demand models that refurbishers say sell out within hours.

“We sold nearly 100,000 units in 2015, a growth of over 40% from 2014,” said Hitendra Chaturvedi, founder of Greendust. “There’s huge demand for iPhone 5 and 5s and even the 4s and the 3Gs as they’re available for relatively lower prices.”
Refurbished iPhones are available on Greendust at discounts of 50% to 75% from the original retail price.

Overcart said iPhone sales on its portal grew 100% on-year, albeit on a small base, making up 5% of its total sales. “IPhones sell like hot cakes,” said Alex Souter, cofounder of the online site that sells unboxed and pre-owned refurbished smartphones.

“Apple is roughly 25-30% of about 400-600 phones we sell a day,” said Soumitra Gupta, founder of TogoFogo.com.

Industry experts said India’s refurbished and unboxed mobile phone market has increased to $3 billion (Rs 20,000 crore) and is set to grow 25-30% in 2016, making the segment a massive opportunity for companies such as Amazon, eBay – which sold about 5,000 iPhones since August 2015 – and ShopClues. Refurbished phones of Samsung, Micromax, Lenovo and Asus also attract strong interest.

Given the consumer interest, Greendust, Overcart, Togofogo, Surpluss and several others are keen to import pre-owned certified phones and some of them are already chalking out plans for supplies.

TogoFogo.com, along with Surpluss.in - which saw iPhone sales contribution rising 30% on-year in 2015 and making up 18% of its turnover in the October-December quarter - would want to begin importing pre-owned iPhones once the ministry of environment and forests approves Cupertino-based Apple’s application.

“We’re already talking to people in the US who sell refurbished phones in Dubai for providing certified phones with warranty,” said Saurabh Rai, co-founder of Surpluss.in.

The price benchmarks for Apple are mostly consistent, compared to various other brands, therefore, it makes sense to import iPhones since the value of the phone, be it any model, will not get diluted overnight, even if what is imported is aging inventory, industry insiders said.

“Unlike the US, the Indian customer may not appreciate refurbished Apple phones being sold through its regular sales channel, hence Apple should join hands with speciality etailers for its sales,” Rai suggested.

To be sure, the environment ministry had turned down a previous application by Apple on grounds that it would add to India’s e-waste.