Smartphone businesses expand in Japan taking advantage of the legal revision.

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Used smartphone market in Japan


 Used smartphone market is expected to grow further in 2019 because the law related to telecommunications has been revised on October 1, changing the used smartphone market in Japan.

Japanese smartphone market is smaller than other countries although it is gradually expanding.

Unit sales of used terminals have been in the upward trend. The smartphone sold annually is estimated to top 3 million units by 2020.

However compared to new products sales, sales of second-hand smartphones are still small, and it is significantly lower than that of the United States, Germany and France.

It is analyzed that Japanese consumer is not aware of the cost efficiency of the used smartphones that is the greatest attraction of used products.

A majority of consumers of big Japanese telecommunication carriers, namely Softbank, NTT DoCoMo and KDDI pay the terminal charges in monthly installments.

They pay the monthly payment for the terminals with communication charges and call charges.

Since the terminal fee and the communication fee are combined and charged monthly, it is difficult to recognize the exact terminal price.

However after terminal charges and communication charges are separated by the legal amendments this situation will be changed.

Under these circumstances, Geo Holdings, one of major retailer of used smartphones based in Aichi Prefecture is focusing on expanding its sales under the new strategy.
Smartphone businesses expand in Japan taking advantage of the legal revision.

It launched a mobile phone dealership business in 2002 and since then it has expanded purchase and sales of smartphone with the rise of its market.

In 2014 all stores started handling used mobile phones and smartphones. It also started handling of cheap SIMs from April 2015 enabling it to provide both terminals and communication services to take advantage of growing demand for lower priced smartphones terminals.

In addition, it opened GeoMobile, a comprehensive mobile specialty store mainly located in urban areas selling new low priced smartphones and used terminals more than 1,000 units per store aiming to expand its profit.
Smartphone businesses expand in Japan taking advantage of the legal revision.Smartphone businesses expand in Japan taking advantage of the legal revision.

The company may also take advantage of the legal revision mentioned above and grow further.


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