The smartphone was once considered a luxury item that only the wealthier segment of society, or those willing to spend large percentages of their limited disposable income, could afford to own. Over the last decade, and especially since about 2010, however, all this has changed.
The Smartphone Industry is Booming
Smartphones have become rather commonplace in recent years, and the smartphone industry is booming as never before, even as prices continue to decline and make smartphones increasingly affordable to the bulk of U.S. consumers.
This, however, is only half the story. There is also a rapidly growing “shadow industry” that specializes in smartphone and tablet repairs and upgrades. Seven important statistics on the current state and future prospects of this mushrooming industry are as follows.
- More than two-thirds of smartphone repair shop owners entered the market less than two years ago, the majority of them having no previous experience specific to the industry. Additionally, the majority of these repair shops are “one-man shows,” and more than three-quarters have fewer than five employees. All this spells an industry that is still in its infant stages and growing rapidly, and indicates it is relatively easy to enter the smartphone repair industry at this point.
- In 2014 alone, $23.5 billion was spent in the U.S. on replacement of broken smartphones. A good portion of that sum was spent because of cracked screens, but the screen replacement industry is booming as well.
When someone buys a new smartphone, someone else usually ends up buying the old one, after it has received a few needed repairs. Thus, even this statistic indirectly shows the potential strength of the smartphone repair business.
- Apple iPhones often retain more than 50 percent of their original value when first re-sold, and iPad devices usually retain 70 percent of their value when they go up for re-sale. The quality, durability, name recognition and relative high cost of Apple® products has caused the Apple pre-owned products market to far outpace the competition. In fact, Apple used products typically sell for six times the price of other brands.
- Despite the high value retention of iPhone devices, Experimac (the leading pre-owned Apple-focused smartphone repair franchise) can afford to re-sell Apple products for as much as 60 percent less than the original price. By taking trade-ins and otherwise getting used iPhone devices at low rates, it is possible to refurbish and re-sell them at prices attractive to customers and beneficial to repair shops as well.
- Approximately 25 percent of iPhone mobile device users have cracked their screen at one time or another, and around half of U.S. households own at least one Apple product (frequently the ever-popular iPhone). This has obvious beneficial implications for the smartphone repair business.
- Around 60 percent of all smartphone repair shops also sell smartphone accessories, especially screen protectors and other “defensive” gear that will help prevent further damage.
- The revenue take-in in the smartphone repair industry is expected to climb by nearly 5 percent per year at least for the next few years and to soon reach to a total of around $1.5 billion. This high sum is made possible by the fact that smartphones have many fragile parts and are expensive enough to be worthwhile to repair.
Invest in a Smartphone Repair Franchise
Business is booming for the smartphone repair industry, and the future looks to be as bright as the present. This is a great time to buy a smartphone repair franchise, which is the quickest (“turn-key”) way to start up your own smartphone repair shop.
Experimac has only been a franchise since late 2014, and yet they already have sold more than 100 locations — a testament to the popularity of pre-owned Apple products. Experimac franchises focus on more than just smartphone repair and pre-owned sales; the franchise has multiple revenue streams. To learn more about starting an Experimac franchise, call 888-251-7693.