Mobile Source Group


Buying D and E grade phones can be a profitable business strategy for a retail store, but it requires careful planning and execution. Here are some ways that a retail store can make money from buying D and E grade refurbished phones:

  1. Lower acquisition cost: D and E grade phones are generally sold at a lower cost than A and B grade phones. This means that a retail store can acquire these phones at a lower cost, allowing them to offer lower prices to customers and increase their profit margin.
  2. Sell at a discount: Since D and E grade refurbished phones have a lower value, a retail store can sell them at a discount compared to new phones. This can attract customers who are looking for a more affordable option and increase the store’s customer base.
  3. Buy to replace: D and E grade phones can come with their own issues however most of the time some parts are salvageable. This means instead of buying a specific part to refurbish another phone you can buy a D or E grade phone at a lower cost and reuse working parts to refurbish and possibly create an A or B grade phone.
  4. Offer value-added services: In addition to selling refurbished phones, a retail store can offer value-added services such as warranties, repairs, and insurance. This can increase the perceived value of the refurbished phones and help the store differentiate itself from competitors.
  5. Focus on niche markets: D and E grade phones may not appeal to all customers, but they can be attractive to niche markets such as students, low-income earners, or people who are looking for a temporary phone. By focusing on these markets, a retail store can create a loyal customer base and increase sales.
  6. Sell online: Selling refurbished phones online can expand the reach of a retail store and allow them to tap into a global market. Online marketplaces such as your own website, eBay, Amazon, or Facebook Marketplace can provide a platform for selling refurbished phones and reaching a wider audience.

If your client is in the market for a new phone, they may not be looking to spend $1,000 or more. They may love the idea of getting the latest iPhone 14 or Google Pixel 7. A refurbished phone might be the right choice for them and if you don’t stock refurbished equipment, you could lose the opportunity of a sale.

All refurbished phones will have been tested and inspected before it is put back on the shelf.

Our first tip is this… Only buy through a trustworthy retailer. Doing that will help to ensure that you will get a product that still functions well. There are several classifications of mobile phones. We are going to look at Category D and Category E only.

What identifies a category D refurbished phone?

Severe Use which looks like:

  • May have functional faults and or visible signs of damage. Needs repair.
  • May have cracked front glass/screen.
  • Defective or Non-functional display which might include flickering or streaking.
  • May have a cracked back cover and/or camera lens.
  • May have unlimited scratches, chips, dents, or cracks on the front glass.
  • May have unlimited scratches, chips, dents or cracks to the back cover and/or frame.
  • May have customised or aftermarket parts installed.
  • May have an “important, can’t verify genuineness” message activated on IOS.
  • May have minor faults. Perhaps faulty face id, true tone, etc.
  • May contain functional faults which could include a lack of reception or no touch screen.
  • Up to 50% screen burn is acceptable for a category D refurbished mobile. Medium to heavy discoloration (pink) is allowed too. The LCD might display white or black dots. Bad or blown pixels. It is important to note that the LCD will not bleed.
  • May have missing or damaged parts which could include the sim tray, buttons or stylus.
  • May show signs of liquid ingress.
  • Data erased and free of all locks.
  • The battery should be functional.

What identifies a category E refurbished phone?

Parts will be non-functional. Category E phones will need repairs in order be operational. They may also have visible signs of damage. Some of the faults might include:

  • Might not be able to power on.
  • May have missing parts or is incomplete.
  • May show signs of liquid ingress.
  • Data might not be erased and therefore require this action to be completed.
  • Might be locked so access may be required (iCloud, FRP, Blacklisted etc).

With these identifiers in place, it is up to you to then decide whether this is an area of business that you are open to. Many more people are seeking out refurbished mobile phones. It is definitely a growing industry and one that can help increase your revenues and profits.

At Mobile Source Group, we have access to refurbished products. Our buying power helps you to stay one step ahead of your competitors! Our network is vast and extends internationally so you know you are in great hands when you work with us to source your refurbished mobile phones!

Please reach out to us to discuss your needs and how we can help. We can talk you through the process and will make the whole experience as smooth as we can. You can email us at or telephone (07) 3139 1559.

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