Science and Tech

Mexico boosts the second-hand phone market in Latam

Mexico boosts the second-hand phone market in Latam

Why do users buy second-hand smartphones?

The second-hand mobile terminal industry has been promoted thanks to factors such as environmental awareness, where people seek to make the most of an electronic device before throwing it away, added to the economic factor in which inflation has generated greater challenges. to acquire a latest generation phone.

Mexico has not been left out of this trend. Of every 100 phones that are purchased, 10 already correspond to the second-hand market, thanks to They are up to 40% cheaper compared to the latest generation, which increases the growth expectations of this industry in the country.

Jorge Palacio, CEO of Clevercel, a company dedicated to the sale of reused devices that operates in Colombia, Peru and Mexico, revealed that this year he expects to bill 30 million dollars from the sale of used phones, which implies more than doubling the 13 million dollars that it registered in 2023. In fact, the country would be the key market to achieve its objective.

For example, the iPhone 13 costs 13,999 pesos in a MacStore, but in a second-hand store it is possible to purchase it for 7,890 pesos.

“In Mexico there is an increasing interest in accessing a second-hand phone because it has a more affordable price compared to new ones. There is a large part of the population that economic issues limit them to buying a phone, even if it is a low-end one,” said the Clevercel manager.

In Mexico, 5.2% of the population still has a 3G phone – which only allows sending messages and making calls – due to the economic pressures that the country still faces due to inflation, according to data from ENUTIH 2022. Chiapas is one of the entities that face the greatest challenges in acquiring a smartphone, since to buy a mobile device from the most economical range, they would have to invest up to 72% of their income.

According to Clevercel data, 30% of its sales come from Mexico City and the State of Mexico, while 70% come from the rest of the entities in the country.

Alliances with large telephone operators

The second-hand telephone market is nourished thanks to the alliances that are forged between telecommunications operators and companies in this field. Clevercel, for example, said that it has agreements with Apple, Telcel and other mobile telephone operators to acquire their second-hand phones, through the exchange or buyback programs for used cell phones.

Telcel, AT&T and Telefónica have schemes that allow users to exchange their mobile devices as a financial bonus to purchase a new phone with 5G technology. Apple also has its Apple Trade In program for users to get a credit for the value of their current device and use it to purchase a new one. Another example is Samsung, which also exchanges smartphones for other brand products or a new phone.

The Clevercel manager assured that before marketing the devices in its e-commerce, the company makes sure that they are in good condition, from the battery to the operating system, to offer a guarantee on the equipment for up to 12 months.

“Thanks to these agreements, every week we have new inventories available for sale, and it also gives us the possibility of selling the equipment with interest-free financing on a fortnightly basis with Kueski or Mercado Pago,” said Palacio.

But the second-use telephone industry still faces challenges to increase its penetration in the country and in the world. One of the main barriers is generating trust in users, since many still consider these types of objects as stolen or with technical problems.

“Mexico, as in Latin America, is where distrust of second-use phones persists the most, but we try to combat this through transparency of their origin and the guarantee. I think it is important that people think more about this type of phones as an option to help reduce the carbon footprint and environmental impact,” said the Clevercel manager.

In addition to the Clevercel option, there are other platforms such as Amazon Renewed where phones are diagnosed to be reconditioned and then sold in e-commerce.



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