B-Stock: price rebound amidst supply shortages

Dube notes that the primary mobile market has been sluggish, with major carriers like AT&T reporting an 8% decline in mobility equipment revenue from April to June. This slowdown has a direct impact on the secondary market, as fewer trade-ins and customer returns mean a reduction in available inventory. Buyers in the secondary market are eager for stock, but their traditional sources—mainly major carriers—are not delivering the volume needed. For Europe this is even worse as more and more companies are looking for CE approved devices that are only available through EU trade in schemes. Although we see an increase in number of initiatives in this field. Europe is still far behind trade in percentages as seen in US.

This scarcity has resulted in relatively stable pricing for pre-owned devices, with some models even recovering value in Q2. The market's reaction to these constraints underscores the importance of supply dynamics in influencing pricing trends.

One significant factor contributing to the reduced volume of new devices is the aftermath of the "supercycle" triggered by the launch of the iPhone 12, the first 5G Apple device. Since then, subsequent models have offered few compelling reasons for consumers to upgrade, leading to prolonged device lifecycles. Launch of new Apple iPhone 16 premium models, with AI capability, might tricker a new supercycle.

Looking ahead

As the industry looks forward there is cautious optimism about the potential for this new AI driven upgrade cycle. However, Dube emphasizes the importance of remaining adaptable to market conditions as the performance of new devices will directly influence secondary market trends.

Another trend to watch is the growing use of automation, offered by companies like Apkudo, Greentech Technology and FutureDial, in the mobile secondary market, including grading software and robotics for processing, repair and refurbishing. This technology not only improves efficiency but also enhances marketplace transparency, enabling more aggressive bidding and faster returns for sellers.