[Kaiyuan Overseas | ATRenew] How to understand the impact of storage price increases on second-hand 3C products?

English summary

Storage price increase transmission chain: storage price rise → new device cost and selling price increase → consumers extend replacement cycles/turn to second-hand → increased demand for second-hand phones; at the same time, trade-in decreases, second-hand phone supply tightens → second-hand phone prices rise. # Second-hand phone prices are affected by two core factors: (1) Whether new phones raise prices, with the core anchor being whether Apple and Huawei high-end lines raise prices (the company's revenue is 70% from Apple and 15% from Huawei high-end lines); (2) Market supply and demand, which is highly correlated with promotion-driven replacement cycles such as 618 and Double 11. At present, iPhone prices have been stable in H1, and from a supply chain perspective, iPhone new models released in Q3 and Q4 this year may raise prices. During this 618, the company's price control strategy was steady, and recycling prices did not fluctuate sharply. There is a misinterpretation that 'changes in storage prices directly affect inventory value'. The company's inventory is complete phones, not memory chips themselves. The value of a complete phone is determined by the new device selling price, brand and model, supply-demand dynamics, condition, and product life cycle. Therefore, when new device selling prices are stable, storage price increases do not directly change the company's inventory value. ...