Three Financial Reasons Why Refurbished Devices Are On The Rise

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To a lot of people who are focused on their budget and making the most of their money, it’s common sense to look at the potential for preowned and refurbished devices, instead of rushing out and buying a new computer worth hundreds of dollars to haul around in your pocket. It might take a bit more work up front, but for most of us, its well worth it – at least that’s what we hear from people all the time. 

These days, more people are turning to used and refurbished devices for a number of reasons. Here are three reasons that the trend is likely to continue in the coming years.

The Global Chip Shortage

You may have heard of the global microchip shortage, and then again, you may not have. Essentially, global manufacturers are scrambling to get their hands on enough small microprocessors to put into everything from gaming consoles to automobiles.

There are a number of reasons why the chip shortage happened. First there was protectionism by certain consumer nations who thought that producers were going to be able to use microprocessor products to spy on other countries. Then there was also the coronavirus pandemic that throw a wrench in production. Through all of it, the stakeholder companies just didn’t plan well – they didn’t factor in, for example, the skilled work that goes into etching on nanoscale carbon wafers, and all the rest. A handful of producers became the only game in town (for example, TSMC) and then everyone woke up to the problem. 

Anyway, these types of trends are going to have an impact on whether people can afford to buy a brand-new smartphone every year or not.

Inflation

Some blame the rampant printing of money during coronavirus, and others suggest that we are in for a natural inflationary cycle.

Either way, we’ve seen the value of certain goods rise – and we’re likely to see that with smartphone devices as well. That makes pre-owned an excellent solution. 

Rising Wages

For workers, rising wages are a good thing. People need to be paid adequately for the work that they do. Giving people money in their paychecks also stimulates the economy.

It is true, however, that in some ways that additional cost makes its way into product and service plans. So you may see additional upward financial pressure on goods and services and that might lead more people to consider a used or refurbished smartphone that can work as good as a new one, but cost hundreds of dollars less!

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