What will the Cellphone Repair Industry be in the Near Future?

There are 3 main factors influencing the industry: rapid-growing demand of smartphone, Technology progress and the industry highly fragmented by small shops.

“Often-fragile smartphones have been a source of revenue growth for the industry”, reported by IBISWorld. What do you think about the cellphone repair industry will be in the next five years? Is there still much profit for the repair shop owners?

The report claims that the cellphone repair industry would have a significant boost because of the growing demand of smartphone. The industry revenue is expected to rise at an average annual rate of 4.9% to total $1.4 billion. The internet-enabled smartphone are more expensive than basic- feature phones. So the customers are more willing to repair rather than replace their devices. Smartphones have more fragile screens and other sensitive parts. These parts need more attention to be protected from breaking or water damages. So around 60.76% of the repair shops offer accessories and smartphone protective stuffs. And as there is still no perfect after-sales service for cellphone, so the smartphone repair shops pricing usually looks tricky and unfair. In other word, the repair shops can get a lot of profit in this kind of market condition.

However, Even though rapid market acceptance of smartphones has created an opportunity for repair shops, a lot of lower price smartphones come out constantly and the falling price of cellphones encourage people to replace rather than repair. There are many choices for customers to replace their smartphones due to the rising disposable incomes and rapid technology change. Who will spend his time and money to fix his phone when there is a brand-new phone that doesn't cost much?

The cellphone repair industry is highly fragmented which is dominated by small shops. Around 68% repair shop owners start their business in less than 2 years in the U.S. Most of them have no related previous experience. 53.16% of repair shop owners run their business by their own, and about 87% of these shops’ employees are less than 5 people. The top four players are estimated to account for less than 10.0% of industry revenue in 2014, indicating a low industry concentration. And who will be the leader in the industry in 5 years? What’s the industry trend will be in 5 years? Let’s wait and see.

  1. BY everv

    So ultimate shall i invest in mobile repairing shop or not ?


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