For every 100 new smartphones shipped globally in Q1-Q3 2024, 36.1 smart personal audio devices, 15.5 wearable bands, 11.6 tablets, and 20.9 PCs were shipped, according to recent Canalys research. This trend reflects a decade-long shift by vendors toward ecosystem diversification, driven by diverse business models, alternative revenue streams, and enhanced loyalty strategies. The question arises: do these findings also reflect the global secondary market?
Survey results
Apple leads the smartphone attachment ranking, maintaining high attach rates across all categories, including wearables, tablets, and personal audio devices. Its ability to generate strong revenue from connected devices stems from its ecosystem integration and independent success of its devices, without heavily relying on bundling strategies for flagship smartphones.
Xiaomi has also experienced a significant increase in sell-in volumes for wearables and hearables this year. Meanwhile, Google Pixel saw a spike in Pixel Watch 3 sales after its Q3 launch, though this is expected to stabilize over time.
The secondary market perspective
In the secondary market, Apple and Samsung dominate, jointly holding over 78% of the market share, according to Counterpoint. Apple's dominance translates seamlessly from the primary to the secondary market, with users often adapting fully to the iOS ecosystem. This includes purchasing iPads and Apple Watches, though AirPods may be less popular in the used market due to hygiene concerns.
Samsung, by contrast, benefits from the more open Android ecosystem but doesn't replicate the tightly integrated ecosystem that defines Apple's success. This difference is evident in primary market trends and likely extends to the secondary market as well.
Resellers can leverage these insights to enhance cross-selling strategies. Promoting bundles, such as pairing a used smartphone with a refurbished tablet or wearable, could drive sales. Offering discounts or loyalty incentives for repeat purchases within the same ecosystem—whether iOS or Android—might also attract returning customers and boost customer retention.
Understanding consumer preferences and ecosystem dynamics from the primary market provides valuable guidance for the secondary market. By aligning strategies with these trends, resellers can maximize their opportunities and meet evolving consumer demands.
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