How Phone Stores Make Money
A cell phone store can bring good profits if handled well. Margins range from 20% to 40%. But phone makers limit margins on new phones to 3-5%. Used phones allow over 10% margins. Wholesale profits depend on what resellers control. Samsung aims for 8-10% but models and markets affect this. Accessories bring 15% to 30% margins. Overall, cell retail, repair, and accessories have big earning potential.
Profit Insights for Phone Companies
Retailers are fortunate to get 3-5% margins on new phones. High prices and manufacturer control limit margins. But used phones allow 10% or higher margins, although prices are 65-75% lower than new. Profits in wholesale depend mostly on what the reseller controls. Samsung wants about 8-10% profits but specific models and conditions affect that. Accessory margins range from 15% to 30%. "Accessories bring good profits for phone companies."
Opportunities in the Phone Case Business
A phone case business can do well. The $10 billion phone case market in 2020 should grow 7.5% yearly, reaching $35.5 billion by 2025.