On a factory visit to Swappie

Rob Coenraads

Many thousands of iPhones
in the warehouse

According to research agency IDC, smartphone manufacturers shipped more than 11% fewer smartphones in 2022 compared to 2021. That percentage is equivalent to around 1.2 billion smartphones, an unprecedented decline. This was partly due to the uncertain economic climate, mainly caused by the war in Ukraine. Smartphones are also lasting longer, so why would you buy a new (and more expensive?) device? In addition, the software support for a number of Android smartphones is improving: for example, Samsung and Google now offer no less than 7 years of updates for the Android operating system and security updates for a number of smartphones. At the same time we see another trend: refurbished In other words, refurbished smartphones are being sold more and more.

Refurbished smartphones

In the IT world, refurbished is a well-known term and stands for overhauled (renovated) that is checked by a (certified) repairer after use and repaired if necessary. Particular attention is paid to components that are sensitive to wear, such as battery, screen and camera(s). For example, iPhone batteries at Swappie must have a minimum capacity of 80%, otherwise they will be replaced. It is striking that some parties claim to sell refurbished devices, but do not do so: for example, Rebuy calls itself ‘market leader in refurbished devices’, but in reality sells devices that have only been checked. That’s why I visited the head office and a factory of Swappie, which both buys and sells iPhones and also refurbishes iPhones.

Android?

That’s right, only iPhones and no Android smartphones. While refurbished iPhones are flying around our ears, Android smartphones are less offered by parties such as Back Market and Rebuy. This was mainly because Apple has supported its iPhones for a longer period of time, which means they remain reasonably valuable for longer. Even after three to four years, you can often still get hundreds of euros for an iPhone. However, because some Android smartphones now also offer long software support, the difference in supply between iPhones and Android smartphones is becoming smaller.

Refurbishing iPhones is profitable in the long term, partly because it sometimes takes months or years before parties sell their last stocks of a device. Moreover, there are of course countless Android smartphone manufacturers and many more Android devices and therefore different screens, batteries, cameras, etc., and that makes it not yet attractive to enter the market for refurbished Android smartphones on a large scale. But who knows…

Advantages of refurbished smartphones

Buying a refurbished smartphone offers you as a consumer a number of advantages. Firstly, the price of such a device is always lower than if you buy it completely new. You can easily imagine this being around 30% cheaper, without sacrificing performance. This performance and therefore quality is a second advantage for the consumer: apart from scratches, you can use the smartphone for years to come. Thirdly, you are of course doing well in the field of sustainability if you buy a refurbished device. Every phone that comes from such a website only ends up in the e-waste pile much later. Moreover, no new device needs to be produced. This also results in significant savings: according to research agency Deloitte, the production of a smartphone causes CO2 emissions of 80 kg

Visiting Swappie

Swappie is the largest iPhone refurbisher in Europe and I visited their headquarters in Helsinki. There I spoke with, among others, COO Emma Lehikoinen, who is a great supporter of it Right to repair: mandating the possibility for repairs of electronic equipment, including smartphones, even if the warranty has expired. It passed at the end of April European Parliament a directive on this is good and within 2 years all member states must convert the rules into national legislation. She said that 10% of smartphones sold are now refurbished and 10% growth is expected every year. Major refurbished markets are India and South America, while the US and Japan are interesting markets.

Secret location

I also visited one operations center in Tallinn (Estonia) where purchased iPhones arrive. Because there are an average of 17,000 iPhones there, the location is secret. There, the iPhones are provided with, for example, a new battery or new screen. First, an iPhone is charged for about half an hour, during which the condition of the battery is examined, how often it has been charged and what percentage it is charging. The iPhone is then given a scan label so that it can be easily found in the warehouse.

The iPhone is then extensively tested in 52 steps using special Swappie software; The outside of the smartphone is also checked. The battery needs to be replaced most often and Swappie does this when its condition is below 80%. After that, it is the screen and camera that need to be replaced the most. Easy repairs go to the department normal repairwhile difficult repairs often go to the micro soldering training center to go.

Logically, damage to the outside of an iPhone is also carefully examined, because that also determines the value of the device. The final sales value is determined by the employee who does the final check and is specially trained for this.

All in all, the Swappie visit was more than worthwhile and gave me a lot of knowledge and insight into the refurbished market.