Think fast – how much does a flagship iPhone 15 Pro Max cost? If you said around $1,600, you would be correct, but only if you reside in the US In Turkey, the same phone will paid you almost $3,000. This gap introduces a fantastic arbitrage opportunity — and a vibrant used and refurbished market. Getmobil just raised $4 million to legalize phone refurbishing 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 brand new phones, because every time a customer buys a brand new phone, the dollar leaves the country.”
Global economics and trade politics are deeply 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 had to manufacture there. This had a bunch of weird results. English language books became almost impossible to buy or extremely expensive (I remember paying $65 a hard copy of Walter Isaacson’s biography of Steve Jobs; in a Buenos Aires bookstore — which sold for about $29 US at the time). This also meant that Apple left the market entirely, choosing not to sell its iPhones in Argentina. And suddenly, long after everyone else had pretty much forgotten BlackBerry existed, the The phone brand made a resurgence in the country when it decided to build an assembly plant there.
The same is happening in Turkey right now. Turkey, desperate to keep its GDP within its borders, has imposed a heavy import tax on phones. It’s not easy to get around those restrictions either — if you sneak a phone into the country, that is IMEI will be banned from the three major networks after 120 days.
The Getmobil team outside the headquarters and repair workshop. Image Credits: Getmobil
Obviously, people still need phones, but, unwilling or unable to pay the incredibly high import taxes, they look for other solutions. Getmobil had its humble beginnings as a modest phone repair shop and has since grown into one of the leading e-commerce platforms in Turkey, specializing in the sale of refurbished electronics.
The main investor, the slightly confused Dutch Founders Fund (DFF), invested in Getmobil’s. “While DFF is based in the Netherlands, our focus at DFF is on investing in B2B markets during their early stage,” says Hidde Hoogcarspel, co-founder and managing partner at DFF. “Our portfolio companies are not only located across Europe but also in areas such as Dubai and Egypt. These markets usually operate cross-border and sometimes even 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 shift from simply repairing devices to refurbishing and selling them, thus laying the groundwork for what would become Getmobil’s core business model.
By imposing high tariffs, the Turkish government created a gray market: People bought and sold phones for cash, none of which was reported to the government. The good thing was that the money stayed within the country’s borders, but obviously, no one was collecting taxes along the way, so that created a new problem: Yes, the money was circulating, but none of it was flowing into the country’s tax coffers.
“Turkey is an absolutely outrageous renovated 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 extensive regulatory framework and incentive system and imports are limited,” explains Hoogcarspel. “The formal renovation sector in Turkey is still in its early stages. The atypical The trade is booming and is estimated to exceed the total market size of $7 billion for new device sales. Tens of thousands of traders are active in this informal sector.’
Eager to get the situation under control, the government brought in some big changes, including some new regulations, tax incentives and opportunities. In 2021, Turkey introduced a series of regulations that significantly strengthened the refurbished electronics market, creating a more structured and reliable framework for companies operating in this sector. These regulatory changes were 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] introduced regulation for the renovation center. They said “if you build the renovation center to certain standards, we won’t get 20% taxes, we’ll get 1%,” Uygun explains. In addition, the government has enabled vetted refurbishing centers to offer installment payments — rather than having to pay for the devices in full. This is great, the founders explain, because consumer credit is highly regulated in Turkey. They say Apple can’t offer installment plans.
Getmobil’s growth trajectory has been remarkable, driven by a combination of strategic foresight, operational excellence and a deep understanding of the Turkish electronics—and regulatory—market. The company’s rise is characterized by its ability to offer consumers high-quality, refurbished electronics at competitive prices, thus filling a critical gap in the market. This value proposition has helped to endear Getmobil to consumers and has positioned the company as a vital player in Turkey’s electronics sector. And, presumably, the government is excited to be 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 driver behind government regulations is revenue, enforcing a stronger repair and used market has a number of positive side effects, including dramatically increasing the useful life of appliances and significantly reducing 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 established strict standards for refurbishment processes, including quality controls, warranty requirements and after-sales services. This legislative environment has been instrumental in leveling the playing field. By playing ball with government regulations, Getmobil bought itself an advantage — by promising to play by the rules, maintaining high standards of quality and customer service, the company gained a huge competitive advantage.
By aligning the interests of customers (cost and quality), the government (ability to keep money in Turkey and 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 little boost too.
Navigating the intricacies 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 underground economy not only drives down the prices of legitimate refurbished electronics, but often compromises quality and after-sales service, posing a significant threat to consumer confidence. Additionally, staying and complying with the evolving regulatory environment in Turkey adds another layer of complexity to Getmobil’s operations.
It depends on the setting
Of course, the first step to cracking down on the black market was creating an alternative to it, and that’s where the regulations and Getmobil’s funding round come in.
For investors, it remains to be seen whether this is a good investment. DFF clearly believes there’s a huge opportunity here, but in the process, it’s investing in a business essentially made possible by a government regulation that clamps down on cross-border trade. Turkey is not a member of the EU (talks ended alleged human rights violations committed by the Turkish government), but if he were to join, the entire business model for Getmobil falls apart: EU countries cannot impose trade tariffs for cross-border imports and exports, and without it, it is easy to imagine the Turkish market being flooded with used and new electronics at the same price as the rest of the EU.
Whether Getmobil’s future is secure or not depends entirely on geopolitical events and the direction of tomorrow’s trade tariffs.
