Magyar Telekom expands used smartphone options with Recommerce 

Source: welcometothejungle.com

Second hand and refurbished smartphones are gaining ground despite the challenge of getting stock

Deutsche Telekom-owned Magyar Telekom has expanded its relationship with French used smartphone trading company Recommerce Group, which began last October, and will see the operator offering a wider range of used products to customers. The companies have claimed success in their joint efforts and marketing so far and the telco is enthusiastic about expanding its offers.  

“By expanding our already extensive range of devices to include refurbished phones, we can offer people the best-in-class devices at a reasonable price, while taking another step towards our sustainability goals,” Magyar Telekom chief commercial officer Zoltán Pereszlényi told Telecomnieuws.  

“It may seem like a small step, but small steps add up and lead to big changes. Since launch, sales of the refurbished devices have doubled compared to our original targets, meaning thousands of our customers can move forward digitally with a quality refurbished device,” he added. 

Analysts International Data Corporation (IDC) estimate worldwide shipments of used smartphones, including officially refurbished and used smartphones, reached 309.4 million units in 2023. The unit growth represents a 9.5% increase over the 282.6 million units shipped in 2022. In addition, IDC projects that used smartphone shipments will reach 431.1 million units in 2027, with a compound annual growth rate (CAGR) of 8.8% from 2022 to 2027. 

IDC says that one of the biggest issues hampering growth in the used smartphone market is that users are holding on to their phones much longer meaning inventory is scarce. Refresh rates for new phones in most developed markets have extended past 40 months, which has caused a shortage of available inventory for the secondary market. Trade-in programs continue to fuel the industry but only make up a portion of the total used inventory. 

As a result, the analysts said the total secondary market has been pulled down around 2.7% as longer refresh rates and weak consumer spending continue to dampen both the new and used markets. Of course, market growth of almost 10% despite this pressure – versus an IDC-estimated market decline of 3.5% for new smartphones – suggests it is still a market that MNOs are paying attention to – and why the likes of Recommerce can grow so rapidly. 

Spreading in Europe 

Recommerce’s Budapest office was its tenth in Europe and third country in Central-Eastern Europe after kicking off in Romania with partner Fenix in 2021. The company recently hit €150m in revenue and since Romania, has expanded to Bulgaria, Croatia, Greece, Hungary, Moldova, Slovakia and Slovenia, with more countries to come.  

CEE general manager Hector Destailleur told Telecomnieuws the company was “eager to collaborate with renowned and powerful retailers such as Magyar Telecom who share our passion for growth and consumer interests, as well as environmentally friendly values.” 

He added: “We believe that enabling investments from other companies in the circular economy is the fastest way to spread and develop the remanufacturing market in the area.”  

The company sold more than 30,000 refurbished smartphones in the CEE region and is planning for at least 30% growth in 2024. Across the wider company, it has diversified its product range to include refurbished iPads and video game consoles alongside smartphones. In the B2B space, it is signing partnerships such as its deal with home improvement and gardening retailer Leroy Merlin, where it is procuring refurbished smartphones for that company’s local employees. 

Recommerce now counts Orange, T-Mobile, Vodafone, Carrefour, Auchan and Flanco as its main partners in the CEE region.