– [Joanna] So you simply traded
in your unclean old phone. (tape zipping).
( bell dinging) It'' s currently component of the$ 64.5.
billion previously owned phone market. In 2022, 73.5 million used and refurbished phones were.
shipped in The United States and Canada alone. It'' s a blowing up service,. and that ' s because phone makers and the mobile service providers. have pressed us all to. – Profession in.
– Trade in. – Trade in.
– Trade it for something new that matches your life now. – However that'' s winning and. losing in this booming market? When I asked the service providers and Apple to show me where the phones go and if and exactly how they make cash on them, they wouldn'' t speak about specifics.That '
s why I came below to a warehouse in the middle of New Jacket. Weekly, this center.
had by US Mobile Phones obtains 10s of thousands of tools, largely Apple from mobile service providers. – So this is 3.
pallets that just can be found in and it ought to be around 3,000 iPhones. – The business after that sells those phones. Some most likely to dealers in various other countries, others obtain tidied up, put via the refurbished.
procedure and marketed to private buyers on websites.
like Amazon or Back Market, a preferred reconditioned phone marketplace. We got an apple iphone 11.
– This'' s a wonderful example '' cause it ' s still sort of dirty. – [Joanna] Yep, I selected.
that 128-gigabyte apple iphone 11 to track the cycle and just how it goes from showing up here with a trade-in worth of $200 to leaving here.
with a price tag of $350. To understand, we need to go.
via the recondition process. The first quit for our apple iphone.
11: information erasure and triage. – We take the phones, we begin.
linking them over here to these computer systems that are.
all running special software application to remove any kind of possibility.
customer details from the devices.
– [Joanna] After that, the.
phone is tested. Well, several examinations. You can'' t offer a phone that doesn ' t work. -[ Sammy] Great and white, no shadows. Now checking the reds. We ' re good condition there, right? So you take a screenshot, now hit the slide switch backwards and forwards. Say cheese. – [Joanna] That clearly.
does not look great. – [Sammy] That'' s ' source of you. We ' re not gon na condemn the phone for that.
Say cheese.( cam breaking) (phone beeping).
– [Joanna] Ooh. – [Sammy] So that was it checking speaker. On the front over below,.
it'' s checking flesh.You see the light on my hands? So you can claim yes, it'' s on. -[ Joanna] I ' m actually not great at this. -[ Sammy] It ' s all right. It ' s day one. You ' re doing respectable. The tools now do a test phone call. -[ Joanna] Success. Our iPhone. 11 passed all the tests. The following action, cleaning.- Tooth brush, plastic secure, microfiber towel, foam.
sponges, hand sanitizer. (serene music) – Looks great and clean. After that, it'' s onto.
grading where someone looks over the tool and designates it a grade so they understand how to value it. – [Sammy] Gon na take a look at the.
front glass, the real estate, the back glass, if there'' s any scrapes. – [Joanna] Success once again,.
our tool got an A. And the final quit, kitting. – We'' re gon na take this.
and place it right into a kit box so that we can get this.
shipped to our consumer.
– [Joanna] US Mobile.
Phones has a sibling company called Back in the Box, which is in charge of offering.
refurbished phones directly to customers on sites like.
Amazon and Back Market. Prior to the phone is delivered,.
the business packages it with a billing wire.
and with great deals of cushioning. – Drop it. Drop it. – I indicate …
– You might drop it. – Our bad phone. (Sammy laughing) (phone dropping) Okay, so currently it'' s prepared. But how much is someone.
going to spend for it? Well, for some context, Apple doesn'' t make the apple iphone 11 anymore but you can still get a.
brand name new 128-gigabyte design for around $500 at some retailers.Back in the Box obviously. needs to undercut that.
– Normally what we like to do is we like to value refurbished items. depending on the quality between 20 to 30% listed below its. retail price and usually
, that gives a good. price cut for the customer and offers us sufficient margin. someplace between 10-15 %to be able to have some money,. have some earnings to after that go and buy more
supply. and support the company.- [Joanna] On its web site,. Apple claims the trade-in value for an utilized, excellent problem. iPhone 11 is$ 200.
Back in the Box told me. it purchased the apple iphone 11 from a carrier for around$ 250. Then after the phone was refurbished, it noted it for $350 on Back Market, which takes a 10 %cut of that sale. Back in package takes home around $65, but that ' s not all revenue.- Put a lots of labor into. cleaning up that gadget. There ' s also a battery charger because. box that we need to pay for.
There ' s additionally a lots of. gadgets that featured that, either had a poor battery or at some other problem that.
we need to cost a loss.So we have to make adequate profit on the great ones to be. able to absorb the appeal the bad ones. – So what did we learn here today? Well, that there are extra victors than losers in this business. The cellular service providers win.
when you trade in an old phone and purchase a brand-new one. Refurbished business.
win when somebody buys a refurbished phone and consumers and the atmosphere win in the process. – The downside is possibly to the supply cost of the suppliers that wan na offer as lots of all new retail items. – [Joanna] Maybe, but also for Apple, if all these phones wind up in the hands of even more people, especially in developing nations, it.
ways expanding market share and more individuals getting right into.
the iPhone circle of life.
( Sammy vocal singing in international language) (Sammy laughing) – That'' s all I got for you. – [Joanna] That'' s extremely great.
