Suppose fast — how a lot does a top-of-the-line iPhone 15 Professional Max price? In the event you mentioned round $1,600, you’d be proper, however provided that you’re primarily based within the U.S. In Turkey, the identical telephone will set you again virtually $3,000. That hole introduces a incredible alternative for arbitrage — and a vigorous second-hand and refurbished market. Getmobil simply raised $4 million to legitimize telephone refurbishing contained in the nation.
“The Turkish authorities needs to lower the commerce deficit,” explains Mehmet Uygun, CEO and founder at Getmobil. “The federal government needs to create a round economic system. They don’t need the purchasers to purchase model new telephones, as a result of at any time when a buyer buys a model new telephone, the greenback goes in a foreign country.”
International economics and commerce coverage is deeply fascinating, and may trigger some actually bizarre quirks in native cell phone markets. In 2010, for instance, Argentina launched a algorithm that meant that in the event you wished to promote merchandise within the nation, you’d must manufacture there. That had a ton of unusual results; English-language books grew to become virtually unattainable to purchase or insanely costly (I keep in mind paying $65 for a hard-copy of Walter Isaacson’s biography of Steve Jobs in a Buenos Aires ebook retailer — which offered for about $29 within the U.S. on the time). It additionally meant that Apple yeeted out of the market altogether, selecting to not promote its iPhones in Argentina. And abruptly, lengthy after everyone else had kind of forgotten BlackBerry even existed, the telephone model had a resurgence within the nation when it determined to construct an meeting plant there.
The identical factor is going on in Turkey for the time being; Turkey, determined to maintain its GDP inside the nation’s borders, has put a hefty import levy on telephones. It’s not simple to get round these limitations both — in the event you sneak a telephone into the nation, its IMEI might be blocked from the three main networks after 120 days.
The Getmobil group outdoors of its headquarters and restore lab. Picture Credit: Getmobil
Clearly, folks nonetheless want telephones, however, unwilling or unable to pay the extremely excessive import taxes, they search different options. Getmobil had its humble beginnings as a modest telephone restore store, and has since advanced into one of many main e-commerce platforms in Turkey, specializing within the sale of refurbished electronics.
The lead investor, the marginally confusingly named Dutch Founders Fund (DFF), invested in Getmobil’s. “Whereas DFF is predicated within the Netherlands, our focus at DFF lies in investing in B2B marketplaces throughout their seed part,” says Hidde Hoogcarspel, co-founder and managing companion at DFF. “Our portfolio firms usually are not solely situated throughout Europe but in addition in areas comparable to Dubai and Egypt. These marketplaces sometimes function throughout borders and typically even globally.”
The place there’s friction, there’s alternative
Because the Getmobil founders navigated the complexities of the electronics restore market, they recognized a major hole between the excessive price of brand-new units and the buyer’s want for extra economically viable alternate options. This realization prompted a pivot away from merely repairing units to refurbishing and promoting them, thus laying the groundwork for what would develop into Getmobil’s core enterprise mannequin.
In placing up excessive tariffs, the Turkish authorities created a gray market: Individuals have been promoting and shopping for telephones with money, none of which was reported to the federal government. The nice factor was that the cash stayed inside the nation’s borders, however clearly, no one was amassing taxes alongside the way in which, in order that induced a brand new downside: Sure, the cash was round, however none of it was leaking into the nation’s tax coffers.
“Turkey is an absolute outlier refurbished market. The value of a brand new iPhone in Ankara is way larger than in another place on this planet. The federal government has created a singular and far-reaching regulatory framework and incentive scheme, and imports are restricted,” explains Hoogcarspel. “The formal refurbishing sector in Turkey remains to be in its early levels; the casual commerce is prospering and is estimated to surpass your complete market dimension of $7 billion for brand new gadget gross sales. Tens of 1000’s of retailers function inside this casual section.”
Wanting to get the scenario below management, the federal government introduced in some large adjustments, together with some new laws, tax incentives and alternatives. In 2021, Turkey launched a set of laws that considerably bolstered the refurbished electronics market, making a extra structured and dependable framework for firms working inside this sector. These regulatory adjustments have been framed as encouraging sustainable consumption practices, enhancing the standard and reliability of refurbished units and decreasing the environmental affect of digital waste.
“[The Turkish government] launched a refurbishment middle regulation. They mentioned ‘in the event you construct the refurbishment middle with some particular requirements, we won’t take 20% in taxes, we’ll take 1%,” explains Uygun. As well as, the federal government made it potential for the vetted refurbishment facilities to supply installment funds — slightly than having to pay for the units in full. That’s extraordinary, the founders clarify, as a result of shopper credit score is extremely regulated in Turkey. They are saying that Apple can’t supply installment plans.
Getmobil’s progress trajectory has been exceptional, pushed by a mixture of strategic foresight, operational excellence and a deep understanding of the Turkish electronics — and regulatory — market. The corporate’s rise is characterised by its capacity to supply shoppers high-quality, refurbished electronics at aggressive costs, thereby filling a crucial market hole. This worth proposition helped endear Getmobil to shoppers, and has positioned the corporate as an important participant in Turkey’s electronics sector. And, presumably, the federal government is happy to be one step nearer to having the ability to regulate the out-of-control second-hand market.
Winners: Native economic system and the surroundings
Whereas there’s little doubt that the primary driving drive behind the federal government’s laws is income, forcing a extra strong restore and second-hand market has quite a few optimistic negative effects, comparable to a dramatic enhance in usable lifetime of units, and a major discount of e-waste.
Earlier than the laws, the refurbished electronics market in Turkey was chaotic and fragmented, and the standard and guarantee protection of second-hand units was extremely variable. The brand new frameworks put in place established stringent requirements for refurbishing processes, together with high quality checks, guarantee necessities and after-sales providers. This legislative surroundings has performed a pivotal function in leveling the enjoying area. By enjoying ball with the federal government’s laws, Getmobil purchased itself an edge — by promising to stay to the principles, adhering to excessive requirements of high quality and customer support, the corporate received itself an amazing aggressive benefit.
By aligning the curiosity of the purchasers (price and high quality), the federal government (capacity to maintain cash inside Turkey, and amassing some taxes alongside the way in which) and Getmobil, everyone wins. Reusing, repairing, refurbishing and recycling extends the round economic system to a broader person base and implies that the surroundings will get just a little enhance, too.
Navigating the intricacies of Turkey’s electronics market presents a singular set of challenges and alternatives for Getmobil. The group tells TechCrunch that the pervasive black market continues to be a giant problem: This shadow economic system not solely undercuts costs of professional refurbished electronics but in addition usually compromises on high quality and after-sales providers, posing a major risk to shopper belief. Furthermore, staying abreast of and compliant with the evolving regulatory surroundings in Turkey provides one other layer of complexity to Getmobil’s operations.
Depending on regulation
In fact, step one towards suppressing the black market was creating another for it, and that’s the place the laws and Getmobil’s spherical of funding is available in.
For the buyers, it stays to be seen whether or not it is a good funding. DFF clearly believes that there’s an enormous alternative right here, however within the course of, it’s investing in a enterprise that’s primarily made potential by a authorities regulation that suppresses cross-border commerce. Turkey isn’t a member of the EU (conversations stalled out over alleged human rights violations perpetrated by the Turkish authorities), but when it have been to develop into a member, your complete enterprise mannequin for Getmobil falls aside: EU nations can’t impose commerce tariffs for cross-border imports and exports, and with out that, it’s simple to think about the Turkish market getting flooded with used and new electronics priced the identical as in the remainder of the EU.
Whether or not or not Getmobil’s future is safe relies upon solely on geopolitical occasions and the course of tomorrow’s commerce tariff winds.