Alternative shopping methods are increasing in popularity, especially for phones. Grey market mobile phones and the refurbished phone market are both growing, as buyers are looking to cut down on costs, importing international products, and becoming more eco-conscious. 

The grey market (or the dark market) refers to when a product is sold outside of the official distribution channels. For example, grey market phones are devices that are sold/obtained without an authorised retailer involved.

It’s estimated that over 30% of all mobile phones traded are grey market phones. It’s also suggested that this figure is only going to grow, especially in many smaller countries that have a limited number of mobile phone models. Most grey market phones are imported from one country to be sold in another, either due to the model being inaccessible or the process being cheaper than buying brand-new through official distributors.

Refurbished phones describe pre-owned phones that have gone through refurbishment, so they are a term used for pre-owned smartphones that have undergone refurbishment so that they can be resold. Refurbishment is a process where the phone is tested and restored so it is fully functional, running “like new”. 

This article covers the difference between phones obtained from the refurbished vs grey markets, what to expect, and which is the better option. It’ll also explore the refurbishing process and how it affects the device.

Refurbished Vs Grey Market Phones

When searching for more budget-friendly smartphone options and deals, it’s common to come across refurbished phones and grey market phones. However, it’s important to remember the key differences between the options.

While both can offer potential savings, especially compared to brand-new devices through official retailers, they aren’t the same. Both markets have their own benefits and disadvantages, so it’s crucial to understand the core differences before making a purchase. 

A big key difference is that refurbished phones are pre-owned devices. They have been returned to the manufacturer or a third-party refurbisher and undergo a strict inspection, repair, and cleaning process. The main goal of refurbishing is to restore the smartphone to like-new condition. Although the specific process differs from business to business, it typically consists of a qualified professional conducting tests and repairs using industry-grade equipment to ensure the device meets specific quality standards. 

Another key difference is that refurbished phones usually come with some form of quality control and warranty. On the other hand, because grey market phones are imported and sold through unauthorised channels, they may not be covered by official or third-party warranty. Due to the nature of the grey market, it’s not always possible to verify the origin of the device. Because of regional differences, it’s also possible for variations in the hardware and software to cause issues, including network compatibility.

Unlike refurbished phones, not all devices obtained through the grey market are pre-owned. Grey market devices can be brand-new, pre-owned or refurbished. ‘Grey market’ just describes how the phone is sold and traded, typically through importing, not the condition.

Which Is The Better Option? 

When comparing the pros and cons of both markets, in most cases, refurbished is the better option. While buying from the grey market can be appealing, especially if you want a model that isn’t available in Australia, it isn’t worth it for phones already available here.

While the grey market can offer good cost savings, you also have to consider the lack of warranty, potential incompatibilities, and uncertainty of origin. It’s possible that when you’re shopping for a new phone on the grey market, you receive a defective or pre-owned one with no way to verify. When you import a device through the grey market, in most cases, there’s no official support available. If you buy a refurbished phone from an official retailer or a reputable third party, it usually comes with some form of warranty and guarantee. With the refurbishment process, you also get a level of guarantee and quality control. You’re ensured that a qualified professional with industry-grade tools and software looks over the device to ensure it is fully functional and running optimally.

If you’re an eco-conscious shopper, buying refurbished is also more sustainable and better for the environment. Refurbished devices cut down electronic waste and greenhouse gas emissions and contribute to a circular economy. On the other hand, devices obtained through the grey market aren’t environmentally friendly. This is because importing devices adds to emissions, and it also goes against the principles of reducing, reusing, and recycling. 

The Refurbishing Process

While there is no universally accepted ‘standard’ refurbishing process, most reputable retailers would have the same core steps. Below, we’ve outlined the usual steps a professional retailer would take in refurbishing a device and putting it up for sale.

Inspection & Assessment

The first step in any refurbishing process is the initial inspection and assessment. This is where a qualified technician examines the phone, evaluating the overall condition. During this, they check that the phone is fully functional (software) and if there is any cosmetic wear, like scratches, that would require fixing.

Disassembly

After the inspection, most companies would disassemble the phone to check the internal components. During this, they check components like the battery, motherboard, and camera and, if required, remove them for repairs or replacement.

Repairs, Replacements & Cleaning

Although the exact order will depend on the company, after the initial inspection and disassembly, any worn or damaged parts are identified and removed. They will then be either repaired or replaced using genuine parts, and then the phone (including the internals) will be cleaned, removing any dust, dirt and residue.

Clearing Data

All previous user data is cleared as part of the refurbishing process. The phone is also restored to factory settings, wiping all pre-existing data and apps off the device, so it is like new.

Software Updates

In most refurbishing processes, after repairing any worn or damaged parts and clearing previous user data, the phone is also updated to the latest firmware and security patches.

Testing

After the refurbishing process is over, clearing data, updating the software, and performing repairs, the phone is tested to ensure it is running optimally. This usually requires industry-grade tools and testing every component, including Bluetooth and network connectivity.

Cosmetic Restoration & Resale

After the phone is tested, evaluated, and repaired, cosmetic restoration, such as minor scratches, is dealt with if needed. In extreme cases, cosmetic restoration may also require replacing frames or screens.

Once the cosmetic restoration is over and the phone has been graded (e.g., like-new, minor wear), the phone is prepared for sale as a refurbished unit. If you’re considering buying a refurbished phone, always keep an eye out for the phone’s condition/grading and information on the refurbishment process.

Any reputable and trustworthy retailer will be transparent about this process. If you can’t find any information regarding the store’s refurbishment process, it is a concerning red flag.

Top-Quality Refurbished Phones at OzMobiles

Instead of risking money on grey market mobile phones, shop for refurbished second-hand mobiles today with OzMobiles. Our range includes devices from leading manufacturers, such as Apple, Samsung, Google, OPPO, and Huawei. 

OzMobiles is a one-stop shop for all your mobile needs. Along with selling refurbished devices, we also sell essential accessories, like charging cables, screen protectors, and cases. We also pride ourselves on offering great deals. So, if you find a better deal elsewhere, we’ll beat it by $10* (terms and conditions apply).

When you shop with OzMobiles, you also get a guarantee the device is high quality and in top condition. All the devices we sell go through a comprehensive refurbishment process by a qualified technician. They ensure the device is fully functional and running like new using industry-grade tools and software.

We also offer peace of mind. The devices we sell come with a free 12-month warranty and a 30-day risk-free return policy. So, if you have any concerns or have a change of heart, you can contact us for support. 

If you have any questions regarding our refurbishment process or require assistance with finding the right phone for you, reach out to our team today. We’d love to support you in any way we can.