Tech-crazy consumers snub used cellphones

They have long been a common sight at shops in the heartland.

But it seems the popularity of cheap second-hand mobile phones is starting to wane.

Sales of used handsets - especially lower-end varieties - have dropped in the last few years as new models become more affordable, small retailers told The Straits Times.

The decline comes despite customers in Singapore changing mobile phones ever more frequently - as often as every 12 months, according to a study by market research firm GfK.

With each upgrade, consumers hooked on the "mobile lifestyle" are opting for newer, slicker handsets.

In the past, their second-hand phones would have ended up in neighbourhood shops. But with more affordable new models on offer, consumers here are increasingly reluctant to go down the used route.

One shop at Marine Parade Central told The Straits Times that sales of used handsets had dropped "significantly" in the last few years.

Most of the phones traded in by customers here now end up being sold in developing countries such as Indonesia and India, where new models remain prohibitively expensive.

Some second-hand dealers team up with telcos to export their second-hand devices.

Meanwhile, a website called Bounce Mobile aims to help users sell their handsets by handling everything from instant valuations to free home pick-ups.

The newly launched service - the first of its kind in Singapore - says it will save people the hassle of monitoring online classified ads or visiting second-hand shops to check for the best rates.

First, sellers get an instant valuation by typing in the model number. Then, they arrange to have the phone picked up from their home. If the phone is found to be in working order, they will be paid by bank transfer within three days.

Mr Paddy Tan, the chief executive of app developer B-Secure Technologies, said that he will be evaluating the new service to see whether it allows him to save on transport costs.

The 38-year-old buys the latest mobile devices to test his products on, but usually disposes of them within a month.

"Road toll charges and public transportation are getting more expensive these days," he said. More than two million mobile phones were sold between January and July, up from 1.8 million in the same period last year.

And as smartphones grow ever more popular, even blue-collar foreign workers are getting in on the act.

Filipino maid Gemma Sanchez, 37, said her friends use messaging apps such as WeChat and Viber as it is "cheaper and more fun to connect this way".

SingTel, StarHub and M1 also offer pre-paid customers - mostly blue-collar foreign workers and students - limited data services at affordable rates.

For instance, SingTel recently launched a $6-per-month plan that lets pre-paid users send messages on WhatsApp. M1 and StarHub have a seven-day pre-paid data plan that costs $7 for 1GB of data.

itham@sph.com.sg

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