The secondary market for mobile devices has matured significantly in the last 5 to 7 years.
In the earlier days of smartphone technology, secondary market vendors entered and exited the market quickly, mostly capitalizing on demand for used iPhones. Now, $479 million worth of mobile device trade-ins are processed every quarter in the United States. And it’s not just smartphones—accessories and wearables like the Apple Watch and Samsung Gear are playing roles as well.
Supporting the secondary market is no longer just about optimizing logistics. When consumers are spending upwards of $1,000 for a new iPhone X, secondary market vendors have to focus on maximizing value.
To maximize value, vendors have to make sure they’re delivering the right devices to the right niche segments. And our detailed device grading system helps make that happen.
5 Mobile Device Grades to Maximize Value
HYLA has transacted over 50 million devices. And while data clearing is standard across all devices, we’ve developed a grading system that gives our buyers a deeper understanding of the smartphones, accessories, and wearables they’ll deliver to customers.
Units that come through our TAP Center could be given one of the following device grades:
- Buyer’s Remorse, A (Like New): Buyer’s remorse equipment (BRE) is typically returned within 14 days of purchase. We give devices an “A” grade when they have pristine, like-new cosmetics and all major functions are fully-operational.
- Buyer’s Remorse, B: Not all BRE devices achieve an “A” grade. We assign a “B” grade when devices show some signs of wear or the unit fails one or more functional tests.
- Functionally Tested Products (FTP): These devices pass all key functionality tests—power, volume, charging, keypad. FTP devices must also be free of any cracks to the screen and body, too.
- Powered-on, Tested, Good Screen (PTG): This grade applies when a device powers on and off and the screen is free of cracks/functional issues. PTG devices may have dents or cracks on the body, damage to the backing, or even minor burn-in/bruising.
- Powered-on, Tested, Cracked Screen (PTC): These devices also power on and off. However, the screen may be bruised, have missing pixels, or have burn-in. As our lowest-graded devices, PTCs aren’t guaranteed to be free of LCD/body dents or cracks.
These grades give channel buyers the information they need to fill their supply chain more effectively. One buyer might exclusively sell high-end devices from BRE programs whereas others may deal specifically with PTCs devices.
However, more and more, we’re seeing buyers become more sophisticated and serve multiple market segments. This information about device functionality/appearances (in addition to details like device make, model, color, capacity, etc.) gives buyers the best opportunity to maximize their pricing.
Device Grades You Can Trust
Over the years, our diverse customer base has helped us gain a better understanding of the different secondary market segments. After 50 million transactions, we’ve been able to develop an analytics system that gives us insight into both market trends and device functionality.
Our deep experience in the secondary mobile device market are what have helped us build trust with buyers. Trust is everything for us as we assign grades that help buyers maximize resale value for each device.
The secondary market will only continue to evolve as mobile devices of all types become more sophisticated (and expensive). Whether you’re a carrier, retailer, enterprise, online vendor, or any other secondary device buyer, you need the tools and insights to maximize values in this sophisticated market.
If you want to learn more about HYLA’s device grading system and how we can help you maximize device/accessory values, get in touch with us today.