Considering Profitability of a Cell Phone Repair Business The cell phone repair sector is an ever-expanding domain and the current evaluation is around $4 bn in U.S., and it s expected that the industry will keep growing this figure with time. The report analyzes the different dimensions of the industry, including market dynamics and business structure based on regional markets.
Market Dynamics
Without a dominant player (no single company holding more than 5% market share) and high independents, the cell phone repair industry is fragmented going forward. Therefore fragmentation has enabled small businesses and independent operators to flourish as they help local communities. With more smartphones being heavily used than ever, and prices for new devices coming higher and higher,it is no surprise their popularity keeps rising as more people rely repairs than replacement.
Business Structure
The majority of businesses in the cell phone repair space are small mom and pop shops or single owner operators. This system not only employs the local economy but creates a healthy competitive market for one-on-one service. The industry is directly employing more than 25,000 people across the country.cell phone repair (ad) On an average, one can visit a cell phone repair shop that has around 3-10 customers walking in everyday; reflecting the consistent demand for services.
Profitability Potential
Cell phone repair business is also a highly profitable one with profit margins being as handsome as 40% to 60%. Much of this profitability can be attributed to lower-than-average overheads that come with running a repair shop over other retail businesses. Since most smartphones users replace their devices every 2–3 years, this leads to continuous repair needs, mainly screen damages and battery changes.
So, in short, the mobile repair business can definitely put you on the map with both time and innovation and the market being somewhat competitive itself. It is a OK choice for small business with bigger customer base and higher margin profit in the tech world today.
