Apple is starting to sell refurbished iPhones. © Camelot / Shutterstock
Will reconditioned products be subject to new European regulations? While the universal charger will finally become an obligation in France from December 28, 2024, the reconditioned sector will have to adapt.
The market entry ban for phones without a non-USB-C port has severely limited second-hand manufacturers’ chances of getting iPhones overseas. However, the refurbished market is currently alive thanks to sales of mostly Apple phones that are a few years old and often acquired overseas. Quite clearly the type of mobiles targeted by the new directive.
And if Apple soon has to comply with the legislation by withdrawing its iPhone 14 from circulation, the iPhone 11, 12, 13 and 14 will continue to be sold under backmarket, re-commerce, smart and other conditions. Will be able to keep. off
USB-C, refurbished equipment savior or gravedigger?
For a phone to fall within the scope of the law, it must first see life on the European market before the December 28 deadline. Products bearing famous markings”AD“So France will always have the right to citizenship, even if they don’t have a USB-C port.Put on the market“Phone without universal port, but no”Wrong again“By a reconditioned player in the market.
Basically this means that products collected in Europe can be sold on second-hand platforms as if nothing happened. However, it would still be a setback for the industry, according to Eric Corden, CEO of Quill Bone Plan. “Of the 4 million phones sold, only half are collected through European channels. Some structures will have mechanical sourcing issues.“The manager says.”It threatens jobs, our infrastructure, our ability to provide products at attractive prices to consumers.“
For Recommerce, on the contrary, looking sad is out of the question. The reconditioned goods leader in France already gets 90% of its supply through European supply channels and therefore should not be too worried. “Our position has always been to defend a circular economy based on local procurement and repurposing.Founder Augustine Beckett explains. For the company, legislation can clear the market sinceMass imports of products do not help the emergence of a European circular economy.“Which is again asking for commerce.
Dusty phones worth their weight in gold
Would it still be possible to compensate for the drying up of additional European imports to avoid shrinking the reconditioned market? For Augustin Beckett, the answer is a resounding yes. “Everyone is engaged in buying and selling. According to studies conducted with McKinsey, the number of product returns will quadruple between now and 2029.“
Many phones still lie in French people’s drawers. © Ecosystem
According to the founder, increased competition and demand for phones will drive up trade-in prices and perhaps finally convince consumers to pull their old phones out of the drawer. “We’re going to make this circular loop.“, Philosopher, founder of ReCommerce. With Apple banned from selling its old iPhones, refurbishers will also have more latitude in pricing, as there will be less competition from new ones.
VAT fraud = USB-C fraud?
The market still needs to be regulated effectively. And that seems to be where the problem lies. “On major markets, there is clearly VAT fraud that exists despite the rules.“, Eric Corden sighed.”It’s hard to believe that these companies won’t continue to flout the rules, especially on USB-C, which is a less important topic than taxation.“
Same story with Recommerce. “Our fear is that only a small portion of the market will respect this law. We want everyone to respect the issues, otherwise we will once again find ourselves in a two-speed market.“. The private copying tax shock has also been there. And if the industry has grown generously in recent years, it seems particularly so”.Self-regulating“Condemning the tax authorities’ competitors. A model that is not really viable.
They want us to believe that this directive will destroy the sector when the market is already bad.
It is difficult to enforce the law on platforms driven by the globalization of the economy and the race to the lowest price. “On marketplaces alone, we had $6 billion worth of fraud annually in 2019. And since then, e-commerce has become even more democratized with Covid.“Quailbone Plan CEO Noted.”They want us to believe that this directive will destroy the sector when the market is already bad.“, says Augustine Beckett.
Awareness above all else
Faced with issues over which industry players have relatively little control, different companies have different strategies to survive in this jungle. “Today, anyone can sell anything. Traceability, digital passport is being discussed.“, argues Eric Corden.
“Our fear is that there will be misinformation.“Augustine Explains Beckett.”We want to explain to the general public that we can buy and resell products as long as it is done at European level. This law will be covered in a lot of media, so there are a lot of people who will say anything.“A sentence for the wise.
