There has been increased interest in the company over the last few months. The stock has doubled this year, and has multiplied more than 3 times compared to its 52 week low. The volumes have also been pretty good. There is greater awareness about the phenomenal growth prospects of the used phone market. One article on the Guardian had mentioned that the used smartphones will increasingly cannabalize the new phone sales over the next 5 years. In five years, 8% of the new phone sales will be cannabalized by the old smartphones against the existing figure of 3%. Even other used electronics devices / gadgets can be monetized. Companies like Usell are attempting to take advantage of this expected boom. For example, used smartphone market is poised to multiply nearly five times from 53m to 257m units over the next five years. Apple products' resale value is a competitive advantage which is not easy to replicate. Used iPhones get a good price. The process at Usell is hassle free and the price discovery is believed to be better. Usell works with nearly 40 sites that purchase used phones and other devices. Usell may also enter into the used jewelry / watches market to expand its activities. Even the manufacturers are trying to get the used handsets so that they can recycle them for sale in other markets. This is likely to increase the market size even further. As per Usell management, the traffic tripled at usell.com after Apple announced its reuse program and the launch of new version recently. So it is highly likely that the topline will grow at a good pace, but what is important is that the company should keep the costs under check to improve the bottom-line. Dr. Frost's support and interest in the company can help it immensely.
