Think fast — How much does the high-end iPhone 15 Pro Max cost? If you said around $1,600, you'd be right, but only if you're based in the US. In Turkey, the same phone will cost you around $3,000. This gap provides a great arbitrage opportunity – and a lively market for used and refurbished goods. Getmobil just raised $4 million to legalize phone refurbishment within the country.
“The Turkish government wants to reduce the trade deficit,” explains Mehmet Uygun, CEO and founder of Getmobil. “The government wants to create a circular economy. They don't want customers to buy new phones, because when a customer buys a new phone, the dollar goes out of the country.
Global economies and trade policy are very fascinating, and can cause some really strange quirks in local mobile markets. In 2010, for example, Argentina introduced a set of rules that meant that if you wanted to sell products in the country, you would have to manufacture there. This had a lot of strange effects. Buying books in English became almost impossible or insanely expensive (I remember paying $65 for a paperback copy of Walter Isaacson's biography of Steve Jobs at a bookstore in Buenos Aires – which sold for about $29 in the US at that time). the time). This also means that Apple has exited the market completely, choosing not to sell its iPhones in Argentina. Suddenly, long after everyone had forgotten that BlackBerry existed, the phone brand resurfaced in the country when it decided to build an assembly plant there.
The same thing is happening in Türkiye at the moment; Turkey, striving to keep its GDP within the country's borders, has imposed a heavy import tax on phones. These restrictions aren't easy to get around either – if you sneak a phone into the country, its IMEI will be blocked from the three major networks after 120 days.
The Getmobil team is outside the headquarters and repair lab. Image credits: Jetmobile
It is clear that people still need phones, but, unwilling or unable to pay incredibly high import taxes, they are looking for other solutions. Getmobil had humble beginnings as a humble phone repair shop, and has since evolved into one of Turkey's leading e-commerce platforms, specializing in the sale of refurbished electronic devices.
The lead investor, the Dutch Founders Fund (DFF), which has a somewhat confusing name, has invested in Getmobil's. “While DFF is based in the Netherlands, our focus at DFF is investing in B2B markets during the seed stage,” says Heidi Hoogkarspel, co-founder and managing partner at DFF. “Our portfolio companies are not only present across Europe, but also in regions such as Dubai and Egypt. These markets typically operate across borders and sometimes globally.
Where there is friction, there is opportunity
As Getmobil's founders navigated the complexities of the electronics repair market, they identified a significant gap between the high cost of brand-new devices and the consumer's desire for more economically viable alternatives. This realization led to a move away from simply repairing devices to refurbishing and selling them, thus laying the foundation for what would become Getmobil's core business model.
By imposing high customs duties, the Turkish government created a gray market: people bought and sold phones with cash, and nothing was reported to the government. The good thing was that the money stayed within the country's borders, but clearly no one was collecting taxes along the way, which created a new problem: Yes, the money was circulating, but none of it was leaking into the country's tax coffers.
“Turkey is quite a refurbishment market. The price of a new iPhone in Ankara is much higher than anywhere else in the world. “The government has created a unique and far-reaching regulatory framework and incentive scheme, and imports are limited,” Hogkarspel explains. “The formal refurbishment sector is still in Turkey is in its infancy; informal trade is thriving and is expected to exceed the entire market size of $7 billion for new appliance sales. Tens of thousands of traders operate within this informal sector.
Eager to get the situation under control, the government has introduced some big changes, including some new regulations, tax incentives and opportunities. In 2021, Turkey introduced a set of regulations that significantly strengthened the refurbished electronics market, creating a more regulated and reliable framework for companies operating in the sector. These regulatory changes are framed as encouraging sustainable consumption practices, enhancing the quality and reliability of refurbished devices and reducing the environmental impact of e-waste.
“[The Turkish government] Provide the renewal center list. They said, “If you build the regeneration center with some specific parameters, we will not take 20% in taxes, we will take 1%,” Oygun explains. In addition, the government has made it possible for vetted refurbishment centers to offer installment payments – rather than having to pay for the devices in full. The founders explain that this is exceptional, because consumer credit is strictly regulated in Turkey. They say Apple can't offer installment plans.
Getmobil's growth trajectory has been remarkable, driven by a combination of strategic insight, operational excellence and a deep understanding of the Turkish electronics and regulatory market. The company's rise is characterized by its ability to provide consumers with high-quality refurbished electronics at competitive prices, thus filling a critical gap in the market. This value proposition has helped endear Getmobil to consumers and position the company as a vital player in Turkey's electronics sector. Presumably, the government is eager to get one step closer to being able to regulate the out-of-control second-hand market.
Winners: Local economy and environment
While there is no doubt that the main driving force behind government regulations is revenue, the imposition of more robust reforms and a second-hand market has a number of positive side effects, such as a significant increase in the usable life of devices, and a significant reduction in e-waste.
Before the regulations, the refurbished electronics market in Turkey was chaotic and fragmented, and the quality and warranty coverage of used devices was highly variable. The new frameworks set stringent standards for refurbishments, including quality checks, warranty requirements and after-sales services. This legislative environment played a pivotal role in achieving equal opportunities. By manipulating government regulations, Getmobil bought itself an advantage – by promising to play by the rules and adhere to high standards of quality and customer service, the company gained a tremendous competitive advantage.
By aligning the interests of the customers (cost and quality), the government (the ability to keep the money inside Turkey, collecting some taxes along the way) and Getmobil, everyone wins. Reusing, repairing, refurbishing and recycling extends the circular economy to a wider user base and means the environment gets a bit of a boost too.
Navigating the complexities of Turkey's electronics market presents a unique set of challenges and opportunities for Getmobil. The team tells TechCrunch that the pervasive black market remains a major challenge: This shadow economy not only drives down prices for legitimate refurbished electronics, but also often results in compromised quality and after-sales service, posing a major threat to consumer confidence. Furthermore, keeping up with and complying with Turkey's evolving regulatory environment adds another layer of complexity to Getmobil's operations.
Depends on organization
Of course, the first step toward suppressing the black market was to find an alternative to it, and that's where regulation and Getmobil's funding round come into play.
For investors, it remains to be seen whether this is a good investment. DFF clearly believes there is a huge opportunity here, but in the process, it is investing in a business made possible primarily by government regulations that suppress cross-border trade. Turkey is not a member of the EU (talks have stalled due to alleged human rights violations committed by the Turkish government), but if it became a member, Getmobil's business model would completely collapse: EU countries cannot impose trade tariffs on the EU. Cross-border imports and exports. Without this, it is easy to imagine the Turkish market being flooded with used and new electronics at prices similar to those in the rest of the EU.
Whether or not Getmobil's future is secure depends on geopolitical events and the direction of the trade tariff winds tomorrow.
