Mobile Monster Acquires Gadget Exchange
Mobile Monsters acquisition of Gadget Exchange expected to deliver great benefits to its customers
Leading Australian online phone re-seller Mobile Monster has acquired Gadget Exchange and expects to further boost its leading value proposition for Australian customers.
Launched in 2011, Mobile Monster has demonstrated solid year-on-year growth whilst priding itself on offering its customers the best value trade-in prices on their old phones. The acquisition of Gadget Exchange further consolidates its leading online industry position.
“We have been in talks with Gadget Exchange for a long time,” said company founder & CEO Tim Duggal. “In acquiring their key assets we have a great ability to not only leverage our existing trading base, but more importantly, we will significantly improve our backend capabilities. Gadget Exchange have developed great software, most notably their retail trade-in platform and pricing matrix. The flow on effects for our business model and ultimately our customers, makes this a very attractive acquisition.”
Mobile Monster already offers customers a premium on their old phones. A quick comparison with another leading online competitor clearly demonstrates the value differential:
Mobile Monster Price iPhone 5s 16GB $320 – Competitor Price iPhone 5s 16GB $210
Mobile Monster Price iPhone 5 16GB $220 – Competitor Price iPhone 5 16GB $140
Mobile Monster Price iPhone 4s 16GB $150 – Competitor Price iPhone 4 16GB $45
Mr Duggal confirmed the spike in trades following the release of iPhone 6 in September this year, as well as the iPad Air 2 release. “New releases always correlate with increased trade-in activity. The iPhone 6 release saw our biggest ever peak of trade-ins.”
Furthermore, it has been demonstrated that consumers always look to recoup some value from their old phones in the new year. “Upgrading phones is one of the most common gifts amongst Australian consumers.” Mr Duggal confirmed the seasonal aspect of phone trades and the spike in activity around the festive season. “For the past 2 years we have seen a weighted average increase of 20% compared with the rest of our year’s trading.”
Mobile Monster is passionate about the mobility sector and their pioneering position in the trade-in space has been visionary given the overwhelming growth that smartphones have undertaken. A recent Deloitte Australia Report on mobility in Australia confirms that smartphones have become an indispensable part of our daily lives. Smartphone penetration has risen to over 81% of the population and these smartphone owners are becoming increasingly reliant on their devices.
Google’s own mobility studies also confirm that not only do 65% of Australians access the internet, via their smartphone, everyday – but that most people (77%) never leave their home without their device.
Australia’s infatuation with their smartphones is consistent with the global smartphone penetration rates and usage. A recent Business Insider study showed that US smartphone users spend an astounding 60 minutes every day on their smartphones. Within that hour the average smartphone activities include talk 26%, text 20%, social networking 15%, browsing the web 14% and email 9%.
“The anecdotal saying is that people touch their smartphones more than any other item in their everyday life!”
Monster Mobile aims to continue its growth trajectory, but also ensure it is abreast of new trends and opportunities. “Working on this acquisition with Gadget Exchange has been a real eye opener. They have chosen to focus on software innovation. Their business case and new venture is one of the most compelling opportunities I have come across. Certainly, this acquisition solidifies our relationship with them. We are hopeful of continuing an alignment once they formally launch their new venture.”
In the meantime, Monster Mobile will focus on its customers and its leading position in the second hand consumer electronic market.