Trade-in
10
Oct
2024
min read

Dipli: stabilization of used smartphone prices in Q3 2024 amid price trends from decline to stabilization

An analysis by French trade-in enabler Dipli of the third quarter reveals that used smartphone prices stabilized after a steady decline earlier in the year. In July 2024, prices reached a low of (index) 84.55, continuing a downward trend from earlier months. However, this decline appears to have halted. In August, prices rebounded to (index) 87.90, likely driven by seasonal factors such as consumer preparations for the back-to-school season and a limited supply during the summer. September saw a slight correction, with prices dropping to 85.24 index, yet remaining above July’s figures. This trend suggests stronger demand or market adjustments ahead of new model releases, particularly the Apple iPhone.

Inventory management: preparing for seasonal demand

Retailers typically adjust inventory levels in anticipation of seasonal trends. As back-to-school shopping begins, stock preparation increases in July, leading to temporary price fluctuations as demand and supply shift. This pattern is common in the smartphone market, affecting pricing strategies.

Impact of new releases

The launch of new models, particularly the Apple iPhone 16 in September, significantly influences the refurbished market. Consumers are incentivized to trade in older devices, creating an oversupply of refurbished units. According to American site SellCell.com, there was a 38% increase in trade-in values and a 28.8% rise in trade-in volumes for the Apple iPhone 16 compared to its predecessor. Notably, 27.2% of trade-ins came from Apple iPhone 15 Pro Max users, marking one of the most successful launch periods since the Apple iPhone 13 in 2021. This temporary oversupply can drive prices down, as inventory from trade-in programs floods the market.

Utilizing prix index

Dipli.com offers a robust price index to track the evolution of refurbished smartphone prices. Calculated using a base index of 100, the index allows for easy comparison and visualization of price trends over time. For example, if a product's price rises from €10 in 2023 to €11 in 2024, the price index for 2024 would be 110, indicating a 10% increase compared to the previous year. While the index serves as a trend indicator, it does not predict future price movements.

Conclusion

Overall, the third quarter of 2024 showed resilience in the refurbished smartphone market, with prices stabilizing despite earlier fluctuations. As the market adapts to seasonal trends and new product launches, stakeholders must stay vigilant and adjust their strategies accordingly.

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