How AI will boost secondary smartphone market in Q4

Foxconn preparing for the Apple iPhone 16 Launch

In late July, Foxconn began advertising job openings across major recruitment platforms, offering an increased hourly wage of up to 25 yuan (about $3.40) and bonuses reaching 7,500 yuan (approximately $1,020). This is a notable increase from the 6,000 yuan bonus offered just a month prior, reflecting the factory's urgent need to expand its workforce ahead of the iPhone 16's peak production period.

The August-to-December timeframe is traditionally the busiest season for iPhone shipments, with Apple setting an ambitious target of 90 million units for the iPhone 16—a 10% increase compared to the previous year. For comparison, Bloomberg reported that Apple shipped around 81 million iPhone 15 units in the second half of last year.

The secondary smartphone market's reliance on the Primary Market

The global secondary smartphone market is entirely dependent on the primary market, as the supply chain starts with consumers and businesses trading in old smartphones. Without the consistent release of new models like the Apple iPhone 16, the supply of used or refurbished smartphones would diminish. While this may seem paradoxical, it is the reality. Assuming a global trade-in attach rate (the rate of trade-ins relative to new device sales) of 20%, at least 18 million units would become available for the secondary market from iPhone 16 sales alone.

AI powering the global secondary smartphone market

So, it could well be that AI is not only responsible for record sales of new Apple iPhones, but it will also greatly positively impact volume and revenue of global secondary market for smartphones. A market where has been a major issue for the last years.

Source: Businesskorea.co.kr