You're watching...
Gazelle CEO Israel Ganot talks about how the company is profiting from buying and reselling used cell phones.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
More than half of American consumers on at least two on use cellphones of the trade in value in these use gadgets.
Is 34.
Billion dollars and now we have somebody who is tapped into this gold mine and is profiting off of a multi billion dollar industry joining me now.
This is broken note here is the gazelle CEO president and co-founder is -- good to see you thanks for coming in so how's your business days.
For having me on the show.
I've been the thing great now the re commerce opportunity is as that you just had his massive.
I told driven by the records.
Peso -- -- -- that we've seen mobile devices over the last few years.
Now as it happens the director of the show the guys directing -- show right now just sold to gazelle and old iPhone and iPhone 4450.
Boxes at about an average price that you.
That people sell them for.
Before nine point -- can get about a 150 box for four rest if you upgrade to the five.
You can get my 200 dollars even more -- so to -- how do you make money to own do you sell these sold I -- What you have to start with a premise that the way and that you by the new -- anyway.
You pay about two to 300 dollars for the -- are -- awful when you when you operate but -- inherent -- -- device is much higher than it's closer to a six to 800 dollars.
So when we pay you owed 200 dollars a couple of years off to use the following.
The interest -- fun but if the -- again is just much -- -- -- -- There's plenty of demand both in the US but even more so in emerging markets -- these devices sold.
-- selling to a lot of different regions.
I would say yes Asia is the largest market that was -- took.
As well as Africa and Latin America.
In -- if you think about demand for this phones over the next three years you're talking about.
To a billion units that will be in demand that those markets and -- -- Samsung.
Black period it just can make enough -- the satisfied the demand.
Now we have been hearing of course and Apple's stock has shown this over the past six months or year.
That there is less of a demand there is perhaps of more of an encroaching on the market share at an -- used to have -- their iphones from Samsung.
And other android they're devices are you noticing the same thing is there is or slackening in demand for for old iphones.
We're not seeing that at all and they're really in fact that their intent of the united we -- product.
It's grown substantially.
Over the over the -- here and our business currently.
Growing about.
-- 10200%.
Year over year -- so demand is just massive.
For this product -- last -- that actually -- -- good news that's got to be good news for apple right.
Well it's good news for up well despite the fact that there are not selling directly and used to this consumers -- -- think about it in those markets.
Those consumers that -- the -- cannot afford.
To really -- -- -- -- in Brazil for example it cost over a thousand dollars.
Combined -- lifepoint most people there can't afford to buy new iPhone so -- are at happy.
To buy a 11 and a half year old iPhone.
From an awful perspective they get into the apple is this them to get on iTunes that by music videos and -- -- They get the apple brand in front of this consumers but again otherwise could afford to buy apple.
Now how do you what's your relationship with and with the apple are we understand that you could be increasing their market share in the enthusiasm for rifles by what you do.
But did they tell you that directly do you work -- directly in any -- -- what.
So there are two sites toward business in the US what we collect the devices from consumers and pay consumers.
For this device says.
The role that we play in the apple ecosystem is enabling.
The outlook for the outs to operate more frequently in a when idol and when -- -- five.
Can knowledge can now October about a third of the product that we bought.
The -- -- from consumers.
-- -- -- -- -- -- It's it's an incredible amount of upgrades that -- happening a year after the forest was introduced to -- thing a lot of upgrades.
-- -- the trade -- are driving an awful sharp a lot about.
And as far as the emerging markets again we we provide access to -- -- products in those markets to an audience that otherwise would not have apple products and our homes.
When net net this is good for -- -- frankly it's good for everybody people selling the old phones for you your -- money on it and apple itself.
Israel thank you very much for coming -- please stay in touch -- You want to thank -- have been note from gazelle.
