The global computing memory shortage is causing headaches for smartphone and PC makers, affecting sales as most are forced to raise prices due to soaring costs. But that pain is playing into the hands of electronics recycler ATRenew Inc. (RERE.US), whose latest earnings report shows it recorded some of its strongest revenue growth in years during the second quarter, as consumers increasingly eschewed new products in favor of trade-ins and lower-cost used ones.
At the same time, ATRenew showed that China’s export machine isn’t just for new products, as it detailed a roadmap for exporting recycled Chinese smartphones and other electronics to the rest of the world. As that effort gains momentum, the company hit a milestone in June when its monthly overseas sales passed the HK$120 million ($15.3 million) mark.
ATRenew’s development follows a typical pattern for Chinese companies, which often start in focused product areas before expanding their scope and sales networks, first domestically and later globally. The company was founded in 2011 with an initial focus as a middleman buying smartphones and other electronics for sale to others, mostly merchants. Along the way it discovered it could earn better margins by refurbishing models rather than simply reselling them as-is. It has also found higher margins by selling directly to consumers compared with other merchants, and has been emphasizing that part of the business in recent years.