A recent GSMA digital penetration report reveals that 60% of Kenyans now prefer used and refurbished smartphones as the price of new devices becomes increasingly prohibitive. According to the report, affordability remains the key driver behind this trend, particularly in low-income areas, where buyers can access phones with desired specifications at a fraction of the cost of new ones.
Growing market for used and refurbished smartphones
As smartphone prices soar, refurbished phones have become a popular option for many Kenyans. The GSMA’s report, launched on Tuesday, highlights a survey in which over half of the respondents indicated they prefer used phones. 60% of the survey respondents indicated preference for used and refurbished phones, enabling them to access their preferred phone at a lower cost, compared to acquiring a new phone with similar specifications, the report states.
This trend shows that even though low-end smartphones have been introduced to boost accessibility, they have not completely resolved the low uptake rates in Kenya. The study focused on how social, economic, and cultural factors influence customers' decisions to adopt smartphones, with respondents from rural, urban, and semi-urban areas providing a representative sample of smartphone adoption dynamics.
Key factors driving used and refurbished smartphone purchases
Besides affordability, 48.8% of the respondents indicated that they value the reliability of reputable local or international brands when purchasing used and refurbished phones. Warranty periods ranging from six months to a year also play a significant role in buyers' decision-making.
Smartphone accessibility in rural areas
The report further notes that rural areas in Kenya face unique challenges in accessing smartphones. Distribution costs make phones more expensive in these regions compared to urban areas, reducing smartphone ownership by 28% in rural areas. Vendors in these areas often resort to stocking low-end phones to maintain affordability.
Future developments
Sales of used and refurbished devices are soaring in Africa, with countries like Nigeria, Kenya, and South Africa leading the way. Although overall unit volumes remain relatively low, there is significant room for growth. With a smartphone penetration of around 46%, similar to India, Africa is quickly catching up in terms of active smartphone users. As the cost of living heavily influences the ability to purchase new devices, used and refurbished smartphones present a viable and strong alternative for driving further digitization across African nations and their economies. Experts predict that Africa could become the second-largest secondary mobile market after Asia by 2030.
Via: Star
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