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00-WDM Final for Web

How BIG is Repair? Industry Overview, Growth & Big Picture By WDM Staff The cellphone repair industry has changed and grown immensely over the past 5 years. What was once considered a throw away or replacement device has increased in complexity and cost.  What has emerged is an alternative to replacement:  repair.  The device repair segment of the wireless industry is growing dramatically. In fact, according to a recent IBISWorld research report, the cell phone repair industry is a $1.2 billion dollar industry and is quickly growing at a rate of 11-13% per year. According to CTIA, The Wireless Association, current reports, there are 102 active mobile phones or connected tablets for every 100 Americans. We’ve noticed in our work with insurance companies that there is a rate of around 15-20% breakage for every device on the market. We have found this stat is nearly identical for tablets and iPods as well. This means for every 100 cell phones/ tablets on the market, 15 to 20 of them will need repair. In fact, according to a Pew Research Center article, during 2013 tablet shipping estimates are expected to exceed laptop and desktop computers combined. There are a couple trends at work that have helped spur the cellphone repair business, said Nima Samadi, an analyst with IBISWorld. First is the explosion of smartphones. According to a 2012 study by Pew Research Center, 46 percent of American adults have a smartphone, outpacing ownership of feature cellphones. Given the high price tags of those devices, especially when sold without a contract, people are more inclined to repair their smartphone rather than replace them. Beyond consumer demand, there are other reasons that more people are getting into the cellphone repair business. Startup and input costs are relatively low, especially if operators work out of their homes or on the road, many choose this route instead of opening brick and mortar locations. 41 W D M


00-WDM Final for Web
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