iStore to add more pre-owned stores to broaden access to Apple products

iStore plans to expand both its traditional retail footprint and network of dedicated pre-owned stores as it seeks to make Apple products accessible to a broader customer base, with pre-owned iPhones emerging as an important entry point for aspirational consumers.

The retailer currently operates 42 stores across South Africa and sees significant growth potential in its pre-owned business, which has become a key part of its affordability strategy.

iStore South Africa CEO Chris Dodd said the company plans to open additional pre-owned outlets before the end of the year as demand for refurbished devices continues to grow. “We’ve got plans to do a further few this year, and I think there’s lots more to come,” he said.

The broader store expansion strategy is focused on taking outlets beyond traditional metropolitan locations and placing them closer to consumers in regional shopping centres.

The company now has stores in every province except the Northern Cape, where it is still searching for a suitable location. “We started in the most obvious places, and now we’re branching out a lot more,” Dodd said.

He said iStore aims to offer the broadest possible Apple product range, including older-generation devices that remain available from Apple, alongside refurbished products sold through its pre-owned stores.

That approach is intended to broaden the retailer’s customer base by catering to consumers across different income levels and stages of the upgrade cycle.

The pre-owned business has become central to that strategy. The retailer currently operates four dedicated pre-owned stores, selling devices that have been traded in, refurbished, repaired where necessary and certified for resale.

The shift towards refurbished devices mirrors a broader global trend as consumers seek access to premium smartphone features at lower prices. Beyond affordability, the refurbishment model supports a growing circular economy by extending device lifespans and reducing electronic waste.

Dodd said the pre-owned model allows iStore to maximise the trade-in value offered to customers while making Apple devices available to buyers who may not be able to afford a new iPhone. “It allows us to give the customer the maximum trade-in value because there’s no middleman involved, and it allows us to get the pre-owned customer at a really good price,” he said.

The company views many of these buyers as future customers for newer and more expensive Apple products.

Dodd pointed to the retailer’s Rosebank pre-owned store, where many customers are students entering the Apple ecosystem through refurbished devices. “One day they’ll be our (iPhone) Pro customer,” he said.

The growth of the pre-owned business is closely tied to iStore’s trade-in programme, with the company offering up to R25,000 for qualifying smartphones traded in towards a new purchase. Dodd said about a quarter of iStore sales during peak trading periods are typically linked to a trade-in.

Smartphone replacement cycles are typically between two and three years, with mobile operators now financing devices over 36-month contracts. “If you trade in after two to three years, you’re still going to get really good value for your device,” Dodd said.

Recent sales trends for the new iPhone 18 range suggest consumers remain willing to spend on premium devices when affordability mechanisms such as trade-ins are available.

Dodd said demand for Apple’s latest smartphone range has been strong, particularly at the higher end of the market, with early pre-orders indicating robust interest.

However, he emphasised that iStore’s growth strategy is no longer driven solely by new product launches. Instead, the retailer is focused on creating multiple entry points into the Apple ecosystem through trade-ins, refurbished devices, a broader product range and a wider physical footprint.

“We just want to make everything accessible through affordability options, physical stores and making it closer to people,” Dodd said.