Dynamics in memory chip prices have even forced Apple to raise prices on electronics, something the company’s scale has allowed it to avoid for a long time. Last month, the price of the basic iPhone officially increased by 10% in Japan, significantly increasing demand for refurbished smartphones. In addition, the demand for second-hand servers has increased in the corporate sector.
Image source: Apple
According to the Back Market platform quoted Nikkei Asian ReviewFrom July 18 to July 24, second-hand iPhone sales in Japan increased by 140% year-on-year, an increase of 20% from the previous quarter. During this period, Apple announced that it would increase the price of new iPhones in the local market by about 10% as a weak local currency exacerbated memory shortages. Sources revealed that second-hand iPhones on the Japanese market have no obvious signs of use, so they are very popular. In addition, the repaired version of the iPhone 17 with 256 GB of memory can be purchased here for 18% cheaper than the new model, which is $900 based on the exchange rate.
It is worth noting that the most popular Apple smartphone on the Japanese secondary market last month was the iPhone SE launched in 2022. It’s now nearly three times cheaper to buy than when it debuted. In addition, iPhone 14 and iPhone 15 generation smartphones are often discounted. Experts at Fomalhaut Techno Solutions said that last September it cost manufacturers $60 to purchase memory for the iPhone 17, but now these costs have more than tripled to $200. As far as the Japanese market is concerned, retail prices are under pressure from a weak yen because Apple products are imported into Japan. In the first half of this year, local market demand for second-hand smartphones from other brands grew by 10%. If Japan’s smartphone secondary market shipments were estimated at 3.6 million units last fiscal year, growing by 12%, its capacity may increase to 5 million units by fiscal 2029.
Legislative requirements in the European Union and the United States force suppliers of electronic equipment to provide repair conditions at reasonable prices, helping to extend their life cycles. This in turn helps stimulate the secondary market.
In the process, Nikkei also cited an example in which a Japanese cloud provider purchased 500 second-hand memory modules from a U.S. supplier, and the U.S. supplier was prepared to provide an exclusive guarantee for them. In addition to solving the shortage problem, this also allows buyers to save up to 30% of their memory module procurement budget. Japanese companies also install previously used off-the-shelf server systems and assemble them from used components. In one case, the Kyushu Hitachi Systems test site will use 11 such servers. In addition to cost savings, this allows you to meet project deadlines, as long waits are required to deliver new equipment amid memory shortages.
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