As yen tumbles, gadget-loving Japan goes for secondhand iPhones - Reuters

TOKYO, Nov 8 (Reuters) - For years Japanese shoppers eagerly shelled retired for the latest gadgets, but present a tumbling yen has enactment caller iPhones retired of scope for immoderate and sparked a increasing secondhand commercialized successful a large marketplace for Apple Inc (AAPL.O).

The Japanese currency's autumn to a 32-year debased against the dollar has squeezed consumers and accelerated a broader spending displacement successful the world's no.3 economy. Industry watchers accidental Japan's shoppers person go much unfastened to buying secondhand, acknowledgment successful portion to the emergence of online auction sites.

In July, Apple hiked the price of the entry-level iPhone 13 by astir a fifth. The basal iPhone 14 aboriginal debuted astatine 20% more than the iPhone 13 did, adjacent arsenic the U.S. terms stayed level astatine $799. While the dollar has surged against planetary currencies this year, the yen has been peculiarly hit, dropping 22%.

Salaryman Kaoru Nagase wanted a caller telephone but couldn't warrant the terms of a iPhone 14, which starts astatine 119,800 yen ($814). Instead, helium bought a utilized iPhone SE 2 successful Tokyo's Akihabara electronics territory for little than a 3rd of that.

"At much than 100,000 yen the iPhone 14 is excessively costly and I conscionable can't spend it. It would beryllium good if the artillery lasted for 10 years," helium said. The iPhone SE 2, released successful 2020 but without the dual rear camera of the iPhone 14, was a "good balance" of outgo and features, helium said.

Apple declined to remark for this story. But successful an yearly regulatory filing past month, it said Japan income fell 9% successful the twelvemonth ended September 24 owed to the yen's weakness.

Apple Chief Financial Luca Maestri besides acknowledged to analysts past period that the beardown dollar had led to terms increases for its products successful immoderate countries, but income had inactive grown by treble digits successful Indonesia, Vietnam and different markets facing currency challenges.

Sales of utilized smartphones grew astir 15% successful Japan to a grounds 2.1 cardinal successful the past fiscal twelvemonth and are apt to scope 3.4 cardinal by 2026, according to exertion marketplace probe steadfast MM Research Institute.

100,000 YEN BARRIER

Taishin Chonan bought a utilized iPhone 13 aft the surface cracked connected 1 of the 2 devices helium carries for idiosyncratic use. The replacement has higher solution and a amended artillery and camera than the iPhone 7 helium had been using.

"Up until present I'd lone ever bought caller phones, this is my archetypal clip buying used," the 23-year-old said. "The caller models are expensive."

Even aft the terms hikes, the iPhone 14 sold successful Japan is the cheapest among 37 countries erstwhile taxation is taken into account, MM Research Institute said successful a September survey. More yen weakness could punctual Apple to rise prices again, the probe steadfast said, perchance denting its hefty 50% stock of Japan's smartphone market.

The latest iPhones are present priced supra the 100,000 yen level that is simply a "major intelligence barrier" for galore shoppers, said Daisuke Inoue, main enforcement of Belong Inc, a portion of trading location Itochu Corp. (8001.T) that sells utilized phones and tablets online.

Average income connected Belong's Nicosuma e-commerce tract person trebled since Apple raised prices successful July compared to the mean implicit the erstwhile 3 months, Inoue said. At Belong's operations centre extracurricular of Tokyo, shipments of utilized phones were unboxed and sorted earlier being inspected, graded and cleaned by rows of workers astatine agelong tables.

The phones were past photographed from aggregate angles for merchantability online. Belong uses Itochu's planetary web to assistance it root utilized devices some successful Japan and overseas, depending connected wherever the champion prices are, Inoue said.

Some of the devices are bought from businesses, specified arsenic tablets antecedently utilized for payments successful cafes oregon displays successful taxis, helium said.

Many Japanese person traditionally been wary of secondhand items, including electronics, but that is changing.

Marketplace tract Mercari has seen beardown maturation successful income of utilized smartphones, portion income of location appliances and electronics person besides grown, a Mercari, Inc (4385.T) spokesperson said.

With Japan unfastened again to overseas tourists, the secondhand iPhone marketplace is getting different boost.

Retail concatenation Iosys Co Ltd has seen a surge successful overseas tourists buying utilized iPhones successful the past 2 months.

"The yen conscionable keeps weakening," said Iosys enforcement Takashi Okuno. "That inclination of visiting Japan and buying an iPhone is coming back."

($1 = 147.1200 yen)

Additional reporting by Kohei Miyazaki successful Zama, Japan and Paresh Dave successful San Francisco; Writing by David Dolan; Editing by Lincoln Feast

Our Standards: The Thomson Reuters Trust Principles.