Smartphones, which are fairly fragile, have been a source of revenue growth for the industry
Los Angeles, CA (PRWEB) March 20, 2013
The Cell Phone Repair industry experienced strong growth over the past five years. Industry revenue is expected to rise at an average annual rate of 10.9%, with 13.7% growth anticipated from 2011 to 2012, to total $1.1 billion. “Much of this growth has been on the back of the rising popularity of damage-prone smartphones,” says IBISWorld industry analyst Nima Samadi. “Moving forward, however, the increasing affordability of cell phones is encouraging more consumers to purchase new cell phones rather than repairing their existing ones.”
Internet-enabled smartphones are more expensive than basic-feature phones and are therefore more likely to be repaired instead of replaced. Smartphones also have fragile LCD (liquid crystal display) screens and touchscreens, inaccessible batteries and other breakable parts that make them more likely to need repair. “Smartphones currently represent more than two thirds of all mobile phone sales and half of all mobile phone users,” adds Samadi. “The rapid market acceptance of smartphones has created a need for more cell phone repair shops to keep up with this growing market.” Over the five years to 2012, the number of cell phone repair shops has grown at an average rate of 6.8% per year to 2,455. The Cell Phone Repair industry is highly fragmented and small operators dominate the industry. There are a large number of small firms in the industry specializing in cell phone repair services that operate independently and are targeted to serve a small geographic region. Industry concentration has remained relatively stable in the past five years.
Over the five years to 2017, the industry is expected to expand at a slower rate than the previous five years due to rapid technology growth, the falling price of cell phones, and rising disposable incomes encouraging replacement demand versus repairs. Smartphone adoption is also reaching its saturation rate. The emergence of 4G wireless technology (and an increasing number of 4G-enabled devices being released) should encourage a more rapid transition to 4G devices, which will discourage customers from repairing older 3G devices. Falling prices have also supported demand for new cell phones and smartphones, providing stronger incentives for consumers to replace their existing cell phones as opposed to repairing them. In addition, an expected rise in consumer sentiment and per capita disposable income over the next five years will encourage more consumers to simply replace their broken cell phones instead of repairing them. For more information, visit IBISWorld’s Cell Phone Repair in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
This industry primarily repairs and maintains cell phones. Some firms may also repair tablets such as iPads or other electronic devices as a secondary business; this activity is also included in industry revenue. Industry firms include brick-and-mortar stores, which allow customers to bring in their cell phones for repair. Some stores also allow customers to mail in devices that need repairs.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.