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Home ยป Rising Tariffs Drive Demand for Refurbished Phones, Laptops

Rising Tariffs Drive Demand for Refurbished Phones, Laptops

Joan Aimuengheuwa by Joan Aimuengheuwa
April 14, 2025
in Gadgets and Appliances
0
refurbished Phones market -
Refurbished Phones

Refurbished Phones

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As escalating U.S. tariffs on technology imports send shockwaves through global supply chains, South Africaโ€™s IT Asset Disposition (ITAD) and refurbished IT sectors are emerging as strategic lifelines for cost-conscious enterprises.

With new hardware costs surging amid international trade tensions, local businesses are increasingly turning to highโ€‘quality, refurbished technology to contain IT spending and maintain operational resilience.

Recent U.S. policy changes have imposed significant tariffs on imported technology components, prompting key Chinese and Vietnamese manufacturers to raise prices on critical partsโ€”such as memory chipsโ€”by up to 15%.

This global price inflation is compounded domestically by a 0.5% VAT increase and a weakening rand, which fell 3% in early April alone, further squeezing IT budgets.

Wale Arewa, Xperien CEO
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Wale Arewa, Xperien’s CEO

โ€œAs businesses grapple with rising operational costs and currency volatility, many CIOs are extending IT asset lifecycles, delaying refresh cycles, and exploring refurbished alternatives,โ€ says Wale Arewa, CEO of Xperien. โ€œThis positions ITAD not just as a sustainability function, but as a strategic business enablerโ€”delivering both financial and environmental dividends.โ€

He said the refurbished IT market offers a compelling value proposition amid these economic pressures, such as

  • Cost Savings: Enterprises can achieve up to 70% savings compared to the purchase price of new equipment, freeing capital for innovation and growth.
  • Sustainability Impact: Extending device lifecycles reduces electronic waste and contributes to significant carbon footprint reductions, bolstering ESG performance.
  • Broad Accessibility: Refurbished solutions open doors for SMEs, educational institutions, and remote workers who may be priced out of the newโ€‘tech market, ensuring continuity and competitiveness across all sectors.

With South Africaโ€™s consumer base under increasing financial pressure, refurbished IT is more than a stopgapโ€”it is a vital enabler of digital inclusion and productivity.

By partnering with Xperien, organisations gain access to rigorously tested, enterpriseโ€‘grade devices backed by comprehensive dataโ€‘sanitisation, warranty support, and flexible lifecycle management services.

โ€œGlobal supply chain uncertainties are unlikely to abate soon,โ€ adds Arewa. โ€œBy embracing ITAD and refurbishment today, South African businesses can transform disruption into opportunityโ€”securing reliable technology at a fraction of the cost while advancing their sustainability goals.โ€

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