Phone as a Service: 5G is shaking up the used car market

Despite the reduction in the purchasing power of Brazilians in recent years, the smartphone is a fundamental object

In a society where sustainability becomes ever more urgent, used mobile phones are gaining ground in 2022. One of the bets of the segment is that it will no longer be necessary to buy a new mobile phone to use a top of the range. line device.

In a country that has more cell phones than people, subscription smartphone service becomes a more convenient way to stay up to date. For those who think that the service is too expensive, the price is among the advantages of buying a used cell phone, as you can save up to 60% of the value of a new one.

Another factor driving Phone as Service is the need for devices compatible with the new 5G internet. The cheapest mobile phones on the market today with this technology are the Samsung Galaxy M23 and the Xiaomi Redmi 9, which sell for up to R$1,500. On used product sites, you can find devices with 5G starting at R $ 650, such as Motorola’s Moto G 5G.

In this scenario, the expectation is that the revenues of the used smartphone market in Brazil will reach BRL 2.8 billion in 2021, with the potential to reach BRL 5 billion in 2024, according to research by IDC.

Of the more than 40,000 mobile phone listings on the OLX sales platform, half are already 5G-capable smartphones and the value can be up to 38% cheaper than new devices, for example.

The smartphone is still a key element

Despite the reduction in the purchasing power of Brazilians in recent years, the smartphone is a fundamental object. It is no exaggeration to say that cell phones are the extension of people today.

Almost everything in our life can be made or improved by devices. From chatting with friends and family, to shortening distances, to changing a global work system that today is increasingly based on the home office, passing through banking, entertainment and culture, smartphones are everywhere.

The growth trend in the sales of used cell phones is also linked to the national situation. The Brazilian doesn’t have enough income to buy a new smartphone, but he has found that there are even better alternatives.

How Phone as a Service works

The As a Service model, so common when it comes to technology, is just starting out in telephony, and henceforth, people can get access to cutting-edge mobile phones every year as the country evolves.

The proposal is to bring the benefits of the sharing economy to a segment thirsty for an innovative business model: the subscription of used smartphones that undergo a recertification process.

Furthermore, the format allows the user to access various additional services, such as insurance protection and technical assistance. It is not just a question of “rental” of equipment, but of the possibility of having a complete product in hand by paying a fixed and convenient monthly fee. The proposal is precisely to facilitate the population’s access to equipment that they would not normally be able to acquire.

Stephanie Peart is an entrepreneur and head ofLeapphone

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Source: Terra

Camila

Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.