July 2017 Lux Special Edition by Wireless Dealer Magazine

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PUBLISHER’S NOTE

Dear Readers,

In analyzing your business, what does the repair industry mean to you? I think that many of you consider the repair business your launching pad, a leg up to starting your own business. Success has brought feelings of excitement, happiness, and monetary rewards for you and your family. Lives are better; the future is brighter. You made the right decision to be where you are at the right time. You are part of the growing repair industry. Marvel that you created your business with bare hands and determination. You have become a business person, a store owner, an industry leader, and repair expert. It’s the place in town where people come to fix anything, unique to every other profession, and do I dare say, even magical to your customers. With every windfall, though, there can also be a waning wind when things slow down. You wonder if you made a mistake. You look around and wonder how it is that some companies still have the wind at their backs, and others the wealth to buy the stores around them. What are you planning to do to stay in the game? How can you move with the wind, move with change and new trends? There's a new third-party repair sector growing. This time there is no glass ceiling and the more you learn the further you will advance in career and business. You won't need to open 15 stores to repair enough phones to be successful. There are places to go that you never dreamed of reaching. Now I am telling you to go there. Now is the time to learn about third-party drone repair. Repair stores are incredibly well positioned to take over a major portion of the drone repair industry. No other industry in the US is even close to taking over a portion of any part of the drone industry. It is your time to step up to the plate and add drone repair to your list of services. You are the pioneer again at the forefront of this booming drone industry. It’s an industry that needs people whose hands already know about repair. It needs you more than anyone -- people who can immediately put drones back to work, in the sky, or under the sea. Fact: There are less than five (5) DJI certified repair stores in the entire United States. Fact: 95 percent of all drone repairs in the 700 to 2500 value drones are currently repaired overseas, with a minimum four (4) week wait time if not longer, and the repairs are done at the same cost and profit margin available to us here in the US. Fact: Larger drones or unmanned vehicles have less repair technicians to work on those class of drones than the smaller class professional drones. Conclusion: The drone repair industry is wide open right here in the US and it is the first significant portion of the drone industry any business here has come close to taking over. How lucky are you? It's your industry, well within your skill set, and here for you now. Let’s not miss this opportunity. Happy Repairing! Kathy Katcher CEO & Publisher Wireless Dealer & Repair Magazine 1-800-862-2609 x701

110,000+ Subscribers Visit other sites Produced by Wireless Dealer Magazine.

THIRD-PARTY DRONE REPAIR

TAKES OFF

A Perfect Fit

for Wireless Repair Experts

By Arlene Hauben

Drones are on the rise, appealing to hobbyists, technology startups, and photographers. Almost every type of company, including real estate agents, farmers, and energy firms, has found uses for drones.

In the can-do wireless sector, phone and computer repair experts are gravitating to drone repair where they see potential for building revenue. Kathy Katcher, publisher of Wireless Dealer Magazine, has watched first-hand how retailers have learned to stay afloat and prosper by adapting their technical skills to new trends and innovation.

In 2008, when Katcher got involved in the ‘repair’ wireless business too, she believed that retail operators had to learn how to repair cell phones as a means of increasing profitability. She believed then, and now,that customers are inclined to bring their phones to trusted and reliable phone repair technologists. Katcher became an advocate for

wireless retailers and computer stores, helping them learn repair skills through her articles, work-shops at her expo's, by connecting them with repair schools, and part suppliers. She watched as phone repair became a solid way to make a living. As repair trade caught on, Katcher noticed that some shops were too focused on repair. These stores were uncluttered, perhaps too stark, with little to nothing displayed in the front. Some owners said they didn’t want to look like a jack of all trades, preferring to be phone repair experts. The challenge continued to be about increasing the revenue stream. Repair retailers need to

integrate new wireless products and services to their repertoire. Besides offering repair, it’s important your store is considered a place customer’s can buy accessories such as cases, speakers, headphones, and gadgets. During the years when a lot of repair retailers were almost solely focused on phone repair, the network continued to grow across the US. Skill levels surpassed the level needed to perform basic phone repairs. Just as Katcher had advocated wireless service stores to provide phone repair, she began to advocate for repair shops to repair more things, like tablets, laptops, smart watches, hover boards, waterproofing devices, and selling their own warranty repair package. What else?

KATHY KATCHER CEO & PUBLISHER OF WIRELESS DEALER MAGAZINE & WIRELESS REPAIR MAGAZINE

‘‘DRONE REPAIR IS A GROUND FLOOR OPPORTUNITY. IT’S A MULTIBILLION INDUSTRY THAT WE ARE TAPPING INTO’’

GETTING IN TO DRONE REPAIR

Then along came a game changer. The FAA lifted the regulation on drone use. Hobbyists and technology start-ups rejoiced when they could use drones commercially without a pilot’s license. They can fly their drones and RC planes without fear of being excessively fined or criminally prosecuted for failing to register.

“Drones had always been on my mind,” said Katcher. “I was convinced the technical ability for repairing drones could lead the repair industry into another higher technical skill level, providing more

vertical opportunities in an industry where just about everyone is a start-up.” After the federal regulation was lifted, there was an audible rumbling for drone repair. “I think the whole drone industry felt that drone repairs were a problem, but first and foremost, it needed a business lift,” noted Katcher. There was an open spot in the drone industry for drone repair, much the same way that phone repair developed from the consumers dependence on smart-

‘‘With drone sales increasing at a staggering rate, it makes perfect sense for these repair operators to take a serious look at drone repair.’’

phones and their livelihood. At one time, it took a week to replace a broken phone, then days, and now hours. Consumer dependence drove the repair industry and changed where, who, and how repairs are provided. “With drone sales increasing at a staggering rate, it makes perfect sense for these repair operators to take a serious look at drone repair. Looking ahead, drone repair could be a significant differentiator for these providers, and a way to keep a step ahead of the industry.”

CRASH AND REPAIR

When it comes to damage control, phone repair professionals fit right into the drone universe. After all, there’s no question that drones will crash – and need repair.

Katcher’s clients had started to ask how to expand into the drone sector. Compared to what is shipped back overseas for repair, there is very little third-party or OEM drone repair performed in the US.

Up until recently, a repair retailer who wanted to become a certified OEM drone repair service provider must agree to sell new drones, commit to a monthly buying contract for new drone sales, and fly overseas for a 5 to 10 day repair class. Typically once those OEM goals are accomplished and sales commitments are met you can repair drones as a certified OEM repair service center. Currently, there are less than 5 DJI OEM certified drone repair stores in the United States. Katcher responded to the demand for drone repair by creating a hands-on course teaching third-party drone repair (specifically for the third-party repair industry). She partnered with the

GLENN WILKINS CERTIFIED DJI DRONE REPAIR TECHNICIAN ‘‘PHONE REPAIR EXPERTS HAVE THE INFRASTRUCUTRE ALREADY IN PLACE. NATURAL PROGRESSION IS FOR THEM TO GET INTO DRONE REPAIR’’

Houston College and close to 40 other colleges nationwide to teach her course. She hired a DJI certified drone repair technician to teach (DJI) OEM best repair practices. The course is centered around how to repair the top five most popular drone repairs customers will bring to your store and how to overcome issues such as sourcing parts, firmware, and drone upgrades/accessories. Drone Repair University is the first third-party drone repair school for independent repair retailers & technicians in the US. **This course in not for beginner level or start up repair technicians.

There are more than 15,500 repair stores in the US that could prepare to provide drone repair services. The profit margins per repair after parts on most drones are $99 to $165. Meanwhile, the phone repair profit margin is diminishing compared to the early days of the industry. Brad Lovell, regional sales manager at Mobile Defenders, said that third-party drone repair makes perfect sense. “We believe there will always be a need for electronic repair. That is a need that cannot always be fulfilled by the OEM. ROBIN TOBIAS

Why should you have to take your car to the manufacturer to get a belt changed when the locally owned shop down the street can do it faster and for the same price or less, and will stand behind their work? The same applies to drones, phones and any other electronic device. Mobile Defenders can provide a turn-key solution for all repair avenues. Wireless repair and replacement parts is what Mobile Defenders is known for at its core, but they realized that they must grow and evolve with their customers. Most repair shops will repair just about anything from wireless devices to computers and even gaming consoles. Drones are a natural extension for the repair community to diversify their revenue streams. Drone sales in 2016 have doubled from 2015. The projected value of the drone industry by 2025 is $90 billion, according to DMR Stats. Lovell said that drones will begin to diversify into different fields. As they grow in popularity, we can fully expect the technology to improve and the price point to drop. As this adoption increases, the number of accidents will increase, which will also make the repair industry more lucrative.

PRESIDENT, THE PREPAID EXPO ‘‘WIRELESS REPAIR STORES ARE CONTINUALLY SEEKING NEW AVENUES TO PROFITABILITY. ON OUR SIDE OF THE INDUSTRY, WE ARE SEEING PREPAID WIRELESS PROVIDERS ADDING REPAIR SERVICES TO KEEP UP WITH CONSUMER DEMAND.’’

TO LEARN MORE ABOUT REPAIRING DRONEs VISIT DRONEREPAIRUNIVERSITYCOM OR CALL

1 800 862 2609 EXT 1 DRONE REPAIR UNIVERSITY AND DRONE REPAIR EXPO ARE PRODUCED BY WIRELESS DEALER MAGAZINE

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GHOSTEK SMARTPHONE CASES THAT ARE WATER-PROOF, DURABLE, AND BARELY-THERE

A UNIQUE BRAND AND

AN ESTABLISHED TRACK RECORD Ghostek has been around for five years and recently started branding their cases two years ago. Since they started, they’ve found success and remain popular on Amazon, consistently getting good reviews from customers. But perhaps what makes them so unique is their branding. There’s a theme behind the company’s products— a fun and creative way to attract customers. They treat each customer as if they were agents , like James Bond or a part of the CIA, and the buyers need to find the perfect accessory to protect their phone to maintainan “air of undetectability” while they’re on a mission.

WHERE YOU

CAN FIND

GHOSTEK The company’s products are available on their website,

GhostekProducts.com, and on Amazon and eBay. They are also aggressively expanding their brand. Right now, they are available in the U.K., Mexico, Canada, and Asian countries such as Korea and Japan, but they are also trying to get into stores. They hope within the next year or so their products will find their way into retail.

GHOSTEK SMARTPHONE CASES THAT ARE WATER-PROOF, DURABLE, AND BARELY-THERE

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THE TOP SELLERS Ghostek sells three models of cell phone cases: the Cloak, the Covert and the Atomic series. Both the Cloak and Covert are smartphone’s unique style. The Atomic series is waterproof. They are coming out with new cases all the time for warranties ranging from one year to lifetime limited. outside of cell phone cases. They sell chargers and book bags, which were, at one point, ranked in the top 20 and 50 on Amazon under the bag/outdoor categories. Ghostek also sells the NRGbag. By September This backpack is water resistant, contains a rechargeable battery pack, and includes USB cables for charging any device including laptops, iPads and smartphones. The next NRG bag will include a solar panel for recharging purposes. It’s a great item for those who love the outdoors.

WHY CUSTOMERS KEEP COMING BACK Finally, Ghostek’s excellent customer service is one ofthe company’s biggest secret weapons and why people keep returning. They always seek feedback and answer people’s questions and concerns. Consumers consistently praise their customer service.

“We have lots of returning customers. They tell their friends, tell their buddy, the store owner, they buy a case and they love it” Vadim Abramov Sr. Distribution Manager at Ghostek

is what separates us from the competitors” said Abramov.

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GHOSTEK SMARTPHONE CASES THAT ARE WATER-PROOF, DURABLE, AND BARELY-THERE

GHOSTEK IS LIVING

UP TO ITS NAME The cellular accessories manufacturer produces smartphone cases that are waterproof, durable and barely-there. With phones becoming thinner, sleeker and more expensive, finding the right phone case is crucial. Sometimes it’s not enough for people to find a case that just covers their phone— now it has to be slim enough to show off the phone’s style while still protecting it from water, drops and scratches. Ghostek, a manufacturer of cellular accessories, focuses on creating cell phone cases that cover all of the above.

“

We provide cases for the high-end phones”

Vadim Abramov Sr. Distribution Manager at Ghostek

“We provide cases for the high-end phones” said Vadim Abramov, senior distribution manager at Ghostek. “We try to come up with the best design and the slimmest case. Our waterproof cases are the most durable.”

GHOSTEK SMARTPHONE CASES THAT ARE WATER-PROOF, DURABLE, AND BARELY-THERE

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GREAT CASES AT

GREAT PRICES Ghostek puts great emphasis on making sure the look of their cases are slim and attractive. A big part of their focus is working with engineers to come up with a product that customers want to buy. They describe themselves as the source for rugged mobile accessories, built with the toughest materials to protect your smartphones. They use the latest in phone case technology, making them competitive in the hot, overcrowded market. Their waterproof cases use IP68 protection, which shields against dust and deep submersion in water, while their TPU cases

contain a thick, durable frame that makes the phone drop-resistant. They fit all of these features while maintaining a thin, sleek design. The best part? While most waterproof cases in the market sell for over $100, Ghostek keep their cases at a reasonable $50-$65, depending on the phone model.

“

Our goal here is to make sure the customer sees an affordable product that, obviously, looks good and has a nice design, but that’s not too bulky, so it can ﬁt in their pockets. It also has to protect their phones” said Abramov.

Next Level Global Mobile Phone Repair TM Aftermarket-SPIDERTech Model Innovations Create New Value SPIDERMALL MAGAZINE FOLDOUT GATEFOLD INSERT PAGE 1 OF 6

t can be said the smartphone industry is a bit like weather vane for the global electronics industry. We at Spider Technologies LLC have, in the past year, witnessed massive change with in the production techniques for smartphones. This is particularly relevant for the lesser known repair aftermarket. On the one hand, the current global smartphone giants market share growth has continued to slow down, as current industry giants are constantly hindered with significant challenges, and consumer needs are becoming increasingly advanced. On the other hand, Chinese brand development has soared, gaining more recognition in the global market. This indicates that global smartphone competition is about to enter a second phase, stepping away from the majors we are currently familiar with. These indications in the market are closely related to the aftermarket smart phone repair industry. Simply having upgraded specs or the ability to get will not be enough to attract consumers. According to a report from the Internationally recognized data company IDC, published on 27th April,2017; Smart phone companies shipped a total of 347.4 million smartphones worldwide in the first quarter of 2017 (1Q17). Worldwide smartphone shipments grew 4.3% in 1Q17. "The first quarter smartphone sales results further prove that the smartphone industry is not dead and that growth still exists," said Ryan Reith, program vice president with IDC's Worldwide Quarterly Mobile Device Trackers." That is huge news for the repair aftermarket. If within one year 10% of customers needed to repair their phone that would equate to nearly 35 million individuals. If the price of each mobile phone repair is around $50, then the mobile phone aftermarket repair industry can reach more than $1.7 billion a year! This is not including the

share has reached above the 80% threshold within the smartphone and tablet repair market, a 5.2% increase year over year. During this time OEM screen repair accounted for the rest of the market but is down 11% from the previous year. Additionally, with every brand new flagship release, the smartphone and tablets aftermarket industry enters a state of change. Next Level Global Mobile Phone Repair Aftermarket-SPIDERTech TM Model Innovations Create New Value Due to stable supply, quick and flexible solutions with a much cheaper price, the growth of China-Made LCD screen market share shows that the consumer needs of the smartphone users is becoming more diverse.

with tablets and smart watches.

Smartphone and tablet repair is a worldwide phenomenon. Sending your phone to a brand authorized repair center, taking it to the 3rd party repair shop or the good old fashioned D.I.Y. (Do it yourself) are three main different ways of repairing a broken phone. The D.I.Y. (Do it yourself) method has become more popular as the years have gone on. That means, regular consumers, people like you and I, can buy smartphone and tablet parts from the web (mainly digitizers and LCD

With regards to those huge numbers, the China-Made LCD screen market

tablet screens ourselves. With that said, as a repair shop owner, it is time to face

the reality that times have changed trends. It is well known that the Chinese mobile phone market, including the aftermarket, is a key influencer and, to a certain degree, has become a key representation of global consumption needs, According to the 2017 1Q report on the Chinese mobile phone retail market published by globally renowned market research company, IDC, the 2000RMB and up price range for mid to high end smartphone markets represents the key growth segment. Consumption upgrades are the core market drivers. It pushes forward market restructuring in a wellpaced manner, and drives the Chinese mobile phone aftermarket into a value transition stage, especially for the high demand market digitizers and LCD assemblies parts. The current situation faced by Chinese mobile phone aftermarket brands as well as global mobile phone aftermarket brands is a large market capacity, ample room for development, white-hot market competition, and urgent need for diversity. While old trading relationships used by traditional aftermarket manufacturers and suppliers are being challenged the Chinese aftermarket brands appeared on the scene, represented by SPIDERTechTM , a well

SPIDERMALL MAGAZINE FOLDOUT GATEFOLD INSERT PAGE 2 OF 6

known LCD replacement screen brand. Not only did they break through to the front lines in the domestic market in record time, but SPIDERTech TM have also garnered widespread international recognition. By making use of an eco friendly business model, Spider Technologies LLC brings new ideas to the table and creates a new path for development as it competes in the global smartphone and tablet aftermarket industry. It also creates a whole new way of communication between repair shop owners and their suppliers. Eight years ago, Spidertech’s founder Tuo had been a pioneer in Making the the high quality LCD screen available to the HuaQiangBei ShenZhen, CHINA, the global center of the Chinamade LCD screen supply chain. In combining high-end specs and sleek design SPIDERTechTM could create what buyers might see as the perfect package. But even then, Tuo wasn't satisfied. "Everyone should have access to the best and latest technology in order to have a better aftermarket supply" said Tuo of his efforts, "The reality is no matter not a really well known replacement LCD brand on the Smartphone aftermarket. Also thousands (yes

thousands) of companies have sprung up, moved into the iOS/ Andorid parts arena in China, and produce smartphone and tablet parts of their own. They have a number of techniques ranging from purchasing the new LCDs and glass from outside sources, and putting them together at their factories, to collecting broken screens on smartphones, and separating the LCDs from the glass. They then refurbish them on new assemblies which they manufacture and put together at their facilities". Tuo also mentioned that Most of the LCD glass supply on the market are AUO or TianMa, which are two raw material brands. It was decided that the screen quality should be on the shoulders of the assembly plant and not the Raw material supplier. The current situation allowed for the suppliers to not take responsibility for defective parts, instead blaming it on the raw material suppliers. Old traditional small companies that came before Spider Technologies LLC have already proven that it's possible for them to build an attractive LCD replacement screen at an equally attractive price by using very low manufacturing methods. Whether Spider Technologies LLC can actually build one that'll make consumers

"We will never be different just for the sake of being different. Everything done has to improve the actual user experience in day-today use."

and repair shop owners forget about other untrusted small brands hocking their inferior product on ebay and Amazon is another question. "A lot of the LCD screen for smart phones on the market aren't perfect quality" Tuo says. "This is where our opportunities reside." For years, mobile phone LCD repair service was only a possibility for the Industry insiders, but more and more market participants have begun throwing their hats in the ring to order the China-Made LCD screens. Spider Technologies LLC is the latest in that plethora of manufacturers, and it has a totally different outlook: it doesn't aim to use cheap components, but to cut down on cost by carefully choosing where it spends money. For Spider Technologies LLC, those costs will be cut out by eschewing retail stores for online sales. "The new system has taught consumers that it’s possible to purchase all aftermarket service parts online," Tuo says. "This is good for new comers like us." Tuo has now launched a new brand SPIDERTech TM that aims to make that a reality. Its goal is to create Tuo's dream of a world wide mobile phone LCD repair market. One that marries fast, high-end hardware with equally high-end service. "We will create a more beautiful and higher quality product," Tuo says beaming with pride. Tuo says it is time that the LCD screen manufacturer should stand out. That is why SPIDERTech TM come to take the place of an industry leader. Spider Technologies LLC has currently released all kinds of Apple, Samsung, HuaWei compatible aftermarket products, listed on www. spidermall.com. This includes everything from wearable’s to mobile accessories to tool kits for repair.

SPIDERMALL MAGAZINE FOLDOUT GATEFOLD INSERT PAGE 3 OF 6

Strict quality control system is a key to be excellent one-stop sourcing service success. Under ISO 9001 and ISO 14001 quality authentication, all Spider Technologies LLC workshops are dust-free, and strictly control the process from the materials selection, cleaning, producing, packing and testing to logistics. Especially, from the product itself, all parts should be make full supervision on the products' whole quality inspection process, timely feedback and analysis on the unqualified cell phone parts. All the SPIDERTechTM brand LCD screen should be:

1. Accurate Location

Fit device without deviation and gap. For iPhone LCD screen parts, all are controlled within 2.17-2.25mm for iPhone products, make sure all items

2. Bright Color Backlight

For iPhone parts, the brightness is controlled within the 500-550 lumens spectrum, same as the original. The cold-tone or the warm-tone can be customized. And all parts without static and light-leaking.

3. High and Low Temperature Test Chamber

Via heating system: heat pipe stainless steel heater Refrigeration system: European and United States approved

efficient energy-saving ultra-low temperature refrigeration system (aircooled cooling) to test around 200H from -30â&#x201E;&#x192; to 80â&#x201E;&#x192; to improve the stably.

Using the www.3Dtouchtest.com on iOS products, and the MultiTouch Tester on Andoird products, all the LCD screens are sensitivity tested.

axis dispenser, minimum Production capacity of 1500/10H, strong frame relying cold press process, glass cover and bezel attached together, which creates a perfect fitting phone to solve frame looseness and excessive glue problem. Although it requires more production time, and higher production cost, it will cut down the complaint that caused by bezel and cover separation.

5. Oleophobic Coating

7. Flex Cable Bending Test

4. Sensitive Touch

The glass is covered with oleophobic coating that prevents fingerprints and waterproof.

6. Strong Glass Cover & Bezel

As the LCD is thinner and thinner, the traditional hot press process can not adapt to this. So, with the three-

bear 30 times resistance to bending test. Fix the test machine with the mobile phone chassis, set the clamshell angle and frequency. At least every 10,000 times after they remove the product for an electrical test to check the disconnection.

SPIDERMALL MAGAZINE FOLDOUT GATEFOLD INSERT PAGE 4 OF 6

Through the last test if the product does

In July 2017, www.spidermall.com

spidermall.com website, says that the

not fail then the product is considered

also showcased the newest version of

SPIDERTechTM ecosystem model is an

good Guided by leading global values,

its online mall, a breakthrough foray

integration of vertical industry chains

principles and a strict quality system,

into user interaction. Tuo has put up a

and horizontal cross-industries. It is

Spider Technologies LLC created

forum site which you can access on www.

a transition from a device-centered

the SPIDERTech TM brand and www.

spidermall.com. He says that he wants

model to a user-focused one. It is an

spidermall.com and within 2 years sold

to know the crowd's opinion on what the

all-around, full-process, multi-level,

almost 10 million units cumulatively,

aftermarket phone repair shop owners

and multi-dimensional innovation.

setting a series of records, including the

care about. Which kinds of services do the

“These innovations are inspired by

fastest sales volume breakthrough to

repair shops need most. Head over to the

real repair shop owner needs” Tuo

1 million, fastest to 10 million. Spider

forum and give Tuo the information he

says, “in the future, the eco-model

Technologies LLC has facilities in Hong

seeks, namely, what would a smartphone

will be a guiding factor for many

Kong, ShenZhen and Los Angeles and

aftermarket need to have for you to

industries.”

has attracted many positive reviews and

consider it perfect. In addition, faced with the

recommendations from main stream According to China’s ARPU rankings,

complexity of the globel market,

SPIDERTech

brand are the #1 selling

t h e S P I D E R T e c h TM o p e r a t i o n

Since its rebirth in 2015, Spider

professional brand in the LCD screen

model utilizes multi channel

Technologies LLC have provided users

aftermarkets, which was spidertech's

cooperation tactics, which means

media, both domestically and abroad.

with a more complete aftermarket mobile lifestyle experience for repair shop owners

not only cooperation with major 1. In phase 2. the aim is to achieve swift

by including supply, recycle, financial

local aftermarket repair brand. But also placing importance on carrier

and eco-services. This can be obtained

up high-quality user acquisition globally,

partnerships offline. Internationally,

by the end user via www.spidermall.com

achieving both volume and efficiency.

Spider Technologies LLC established

, the vertically integrated platform one-

Spider Technologies LLC will continue to

a strategic partnership with mobile

step supply chain. This transforms the

create value for service repair shops and

aftermarket leaders, in the future,

aftermarket from a static sell-buy trading

users.

Spider T ec hnologies LLC w ill

relationship into a dynamic access point

continue with its multichannel,

to an entire ecosystem, opening the door

Tuo, president of Spider Technologies

multi-dimensional strategy and work

to the eco-world for the Chinese market

LLC holdings and president of

with partners to create a mutually

and people around the globe.

SPIDERTech

brand and www.

SPIDERMALL MAGAZINE FOLDOUT GATEFOLD INSERT PAGE 5 OF 6

As a local U.S. brand the forefront of

These trends have started to take shape

report that in 2017-2020 global

the global industry, Spider Technologies

as customer feedback in the U.S. this

smartphone market share is estimated

LLC knows a few things about the

past year.

at $30 billion. Which will undoubtedly make it a focal point for global mobile

mobile phone aftermarket trends and can provide quite a bit of foresight.

During the professional high quality

phone aftermarket LCD screen

According to a rsearch report on mobile

LCD screen listed on www.spidermall.

manufacturers, turning back to the

phone repair aftermarket about LCD

com. SPIDERTechTM brand served as the

present, the smartphone industry is

screens published recently by GFK, U.S

smart key that activated a new species,

undergoing major changes globally.

repair shop owners demonstrate one of

a wide array of interactive experiences,

Consumption is rising to the next level

the highest acceptance rates in regards

bringing science fiction to life. From

and the quality to price era is going to

to China-made high quality LCD screen

this we can see that SPIDERTech

be dead, while a value-centric era is

products. Spider Technologies LLC will

will bring a whole new personalized.

release a new strategic product equipped

And interactive ecosystem experience

with 100% fit. The new high standard

to users, and will also drive industry

Mobile devices repair aftermarket have

compatible LCD screen parts will also

development.

evolved into the adjustment phase.

help SPIDERTech

This change in the mobile phone repair

to provide repair

shop owners with the best eco-services.

emerging from the ashes.

The IDC claimed in its most recent

aftermarket is not a much a result of

consumption needs but rather a gradual change of lifestyle for consumers

we will then This is a game changer for

around the world. In the face of fierce

both the consumers and the repair shop

market competition, SPIDERTech

owners. A revolution is coming . Get

have held fast to the all the listed

ready.

models, their user- centric vision, their superior technology and complete

Spider Technologies LLC owns the

ecosystem development principle. This

SPIDERTechTM brand and all the listed

may be the key to success for the next

items via www.spidermall.com.

level of competition in the mobile phone aftermarket, and may bring about all-

Take a risk free trail by going to www.

new value for the industry around the

spidermall.com

world. SPIDERMALL MAGAZINE FOLDOUT GATEFOLD INSERT PAGE 6 OF 6

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Spring Editorial

Sourcing trade in devices for resale?

Not all B2B sales channels are created equal

Continuous technology upgrades combined with the explosion of cell phone buyback, trade-in and refurbishing programs have created a robust secondary market for wireless devices. Consider this: the average person upgrades their phone every 22 months, most likely leveraging one of the thousands of cell phone trade-in programs available. Whether traded in to a mom-and-pop shop or sent back to a major wireless carrier, the majority of these devices will end up being sold in bulk. This presents a great opportunity for wireless retailers to obtain quality secondhand devices for resale.

But not all B2B sales channels are created equal and buyers who source bulk

quantities of returned, excess, overstock or refurbished devices should do their from a liquidator or wholesaler can involve hours of negotiation, product poaching and price mark ups before you even have access to the inventory. Luckily this old-school way of doing things B2B channel involving technologybased platforms, many of which, cut out middlemen and negotiations. So, as a buyer, how do you navigate through the endless secondary market sales channels to successfully get to the good? Here are some tips on what to look out for when sourcing returned, excess, and refurbished wireless merchandise.

www. sourcing. bst ock. com

Spring Editorial

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Itâ&#x20AC;&#x2122;s best to buy directly

from the source By purchasing directly from the retailer or manufacturer you can assume that there is no middleman involvement and no price mark up. small to medium sized buyers to buy this type of inventory directly from large retailers and manufacturers; however, today there are new, manual work otherwise required for them to sell to larger buyer groups.

Leverage online auction platforms

Online auction marketplaces provide a level

inventory and they enable a direct relationship with the source via a transparent platform. Because they eliminate all negotiation over price, it is just as easy to have thousands of buyers involved as it is to manually sell to just a handful. wireless devices online including: greater product availability, detailed product descriptions, bulk

a quick sales cycle. The key is to make sure you are buying from a known brand, or use a site that has a seller rating system, so you know you are buying from a reputable seller. Purchasing through these online auction marketplaces can be a great, cost-effective way to secure inventory because youâ&#x20AC;&#x2122;ll see what others are bidding and never pay more than you want. w w w. s o u r c i n g . b s t o c k . c o m

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Spring Editorial

Understand what you are purchasing

It always pays to be detail oriented, especially when sourcing on the secondary market. Most credible B2B sales platforms will provide you with a full manifest of the inventory. If that’s not available, make sure you have as much available detail on the devices as possible before you buy, including: conditions, thorough descriptions, actual image(s) of the inventory, shipping dimensions and costs, and technical information.

Make sure you have access

to a constant supply of product

www. sourcing. bst ock. com

It’s important to have enough product(s) to satisfy the needs of your customers. Make sure that the B2B sales channel you are sourcing inventory from has a continuous supply of the models and accessories you need. By purchasing directly from the retailer or manufacturer – especially one that operates in the wireless space and/or sells the product – you are guaranteed a constant supply to keep your customers happy.

Spring Editorial

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Purchase via a credible platform

Know exactly what you are buying and whom you are buying from. A credible auction marketplace will provide thorough product descriptions, images, accurate condition codes, real-time bidding updates and a direct line between buyer and seller.

B-Stock powers the largest network of B2B liquidation marketplaces from Fortune 1000 retailers and manufacturers, including two of the nationâ&#x20AC;&#x2122;s largest wireless carriers. For a look at B-Stockâ&#x20AC;&#x2122;s network of private-label B2B marketplaces or to start sourcing returns and overstock merchandise including mobile devices, consumer electronics and wireless accessories, please visit our B-Stock Sourcing Network (http://sourcing.bstocksolutions.com/).

67 www. sourc ing. bst ock. com

PYRME: WHAT COMMUNICATION PROCUTS WILL END USERS NEED NEXT?

What communications products will end users need next?

By Dave George

Every day, new messaging and management mobile apps appear in almost every business sector to that support them on networks with reliable connectivity. For many, these app technologies also make communicating more affordable, encouraging even more conversion and hardware purchases.

Consequently, the demand for specialized mobile applications is driving device augmentation and evolution in the race to capitalize on this trend. Weâ&#x20AC;&#x2122;ve all witnessed how pushto-talk over cellular (PoC) applications has impacted wireless communications and hardware development, such as Bluetooth

PYRME Editorial

What will end users want next?

1. Although new mobile applications are popping up daily, the trend toward consolidation and acquisition of software companies will continue to expand, as demonstrated by Motorola’s recent purchase of Kodiak’s PTT platform. Even so, app developers will introduce fresh programs faster than others are absorbed, thus it’s extremely important for manufacturers like Pryme to be nimble and react quickly to stay relevant. 2. Because law enforcement still seems somewhat uncomfortable with substituting smart phones for two-way radios, devices that look and feel exactly like radios on the outside, but are really 4G phones on the inside, may soon become commonplace. In fact, Pryme has recently been in development on its own versions—Speaker microphones with internal 4G boards and radios with a plug-in sim cards that allow users to talk to anyone in the world. In effect, it’s all just repackaging. 3. Soon, there will also be hardware devices that control multiple communication outlets at once, yet are smaller than ever before. Multi-purpose smart watches are already in use among consumers. Who’s to say this technology won’t evolve among private sectors as well? Pryme is already working on a ring-sized BLTE button that controls everything, including PTT radio, phone, channel selection and even music programs. 4. As the mobile app trend matures, every public safety duty will have dedicated applications,

PYRME: WHAT COMMUNICATION PROCUTS WILL END USERS NEED NEXT?

just as they do in many other

the bill for every environment, so we are already seeing major manufacturers coming up with in some categories, and expect many more! 5. The Internet of Things (IoT) has been the impetus behind most wireless innovations and will continue to be until another network technology surpasses it or, as some may fear, it reaches maximum capacity. WiFi beacons and nearcommunicate with smart phones or other devices at strategic access points are increasingly deployed in a variety of settings to target individualized messages. Similar sensors also exist in Bluetooth technologies, so it’s not inconceivable that government and

ways to incorporate these in future

communications. This kind of location information might end up playing a role in emergency response, as well as enterprise. Of course, this will mean more apps and new hardware to

support it. Luckily, if there’s suddenly a need for products to optimize this direction, Pryme’s puts us in the unique position to deliver just about anything. 6. At the rate things are changing, one of the only ways manufacturers will be able to stay relevant and meet end user requirements is to align with other companies to achieve a joint solution. The trend toward synergistic partnerships has expanded rapidly in recent years and, as new software and technologies arise, sharing the load will be an even greater necessity. Another growing entry point for manufacturers are systems integrators, which allows vendors to compete in new arenas. PoC is a perfect example of the rising partnership frenzy—PTT app companies, network providers, LMR radio and smart phone makers now work together to keep up with end-user mandates. For now, software applications are calling the shots. As the saying goes, “There’s an app for that.” I say, “Where there’s a new app, there’s new hardware.”

PYRME Editorial

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Righting the Balance

in Cell Phone Repair Ed McKinley

Ed McKinley is a Senior Writer for The Prepaid Press, an online publication for the prepaid services industry. To learn more about the relationship between prepaid and repair services, and meet the players, attend The Prepaid Expo, produced by The Prepaid Press: August 22-23, 2017, Planet Hollywood, Las Vegas. Visit www.theprepaidexpo.com to register.

weird imbalance prevails in the cell phone business. On one side of the equation, the stores founded to sell prepaid minutes also repair phones. But on the other side, the shops launched to specialize in repairs usually don’t sell minutes. of prepaid stores now double as repair shops, while perhaps 10 percent of the nation’s 15,000 or so repair centers are selling minutes, according to Avi Yosopov, CEO of PhonePartsDistributors.com, a wholesaler of repair parts and used cell phones. Despite their resistance to selling minutes, the repair specialists have been growing in number for the of MaxBack, a company that buys and sells used electronic devices, including phones. That growth shows little sign of abating, he says. Meanwhile, however, the repair marketplace get into the business, says Lee Terkel, vice president of sales and marketing for cellhelmet, a phone accessories supplier. “Things are juxtaposing in all sorts of odd and strange ways,” he observes. The fragmentation of the market also includes incursions by small shops selling that specialize is selling barely related products – like battery stores, notes Matt Roldan, chief customer and repair parts to the cell phone industry.

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In addition, some repair people regard the retail side of the business as a lower-end pursuit that’s poorer parts of town, Yosopov says. “They think of a cluttered, non-corporatelooking store with a thousand different banners in front of it from a hundred different companies,” he maintains. “A lot of people take a step back from that.” Instead, lots of repair people aspire to opening shops in white-collar areas and catering to consumers who have postpaid accounts, Yosopov says. “Do I agree with their decisions?” he asks rhetorically. He answers himself by saying no. Combining repair with selling minutes and accessories makes more sense, Yosopov contends, adding that those who fail to bring together all the elements of the business will be left behind by competitors.

Whatever the volume and whatever the shop chooses as its replacing a lot of cell phone screens, says Roldan. In fact, screen repair accounts for about 80 percent of the repair business, he says. Remember that it’s mainly component-level repair, cautions Heydari. Hardly anyone in the cell phone stores or repair shops is changing out chips or modifying circuitry, he

says. Ninety percent are module changes – either a speaker or microphone – big components, he contends. Replacing major components that way usually requires 30 minutes to an hour, Heydari estimates. If the shop tells a customer a repair will take longer, it’s just because the shop has a backlog of work, he notes.

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Starting a repair shop

eople who aspire to launching their own repair shops often have a computer background and start by repairing phones for friends and family, Yosopov says. Then they see the demand, scrape up some capital and open a shop, he says.

Inventory should include screens, charging ports, earpieces, buttons and lots of other small parts, Roldan notes. And the parts vary from model to model. “You need to have a few of everything just to make sure,” he says.

Some computer-repair shops simply branch out into cell phone repairs, notes Roldan. Then there are the phone repair-stores that begin working on computers, too. “There

Besides inventory, repair shops should have marketing plans, Roldan emphasizes. “You have to know how you’re going to acquire customers,” he advises. His company provides ways of marketing online, he says.

However, it’s easier to enter the phone repair business than the computer repair industry because computers come in a wider variety of models and thus require a larger parts inventory, Roldan says.

Perhaps 20 percent or 30 percent of repair people choose to become franchisees, although no one really know the true numbers, notes Roldan. Of those who do take franchises, some remain low-level with just a few locations while others operate hundreds of franchised shops, he says.

The investment in parts varies for phone repair shops, Roldan continues. It’s tough to say how much inventory the business requires because it differs depending upon location and marketing, he contends. The parts bill for typical repair shops ranges from $2,500 to $5,000 monthly, he says.

A Google search yields numerous franchisors, many with names that conjure medical images. In no particular order, they include CPR, Cellairis, DrPhoneFix, LifeLine, Staymobile, iCare and uBreakiFix. Some entrepreneurs have grown their businesses into regional operations with multiple stores.

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The imperative of accessorizing A

lthough repairs shops often exhibit a reluctance to sell minutes, most show enthusiasm for selling accessories, says Terkel. “You walk into a well-heeled repair shop today, and you will see all of the ancillaries that are sold in wireless,” he says. Customers often wait in the shop for an hour or so for a phone repair, giving them plenty of time to peruse whatever accessories the repair shop chooses to display, Terkel notes. At the same time, prepaid retailers are attracted to the accessory business because their margins are squeezed on activations, renewals and devices, Terkel says. “The business is becoming more and more paramount,” he declares. What’s more, prepaid retailers are going upmarket with the accessories they offer as their clientele becomes more middle class as families learn they can cut their wireless expenses by switching from postpaid to prepaid, Terkel maintains. “Chargers, tempered glass – those are going to be their opportunities,” Roldan says of accessories. “The No. 1 upsell in the industry is tempered glass,” he notes. For consumers, a $30 tempered glass shield protects a screen that could cost $90 to $300 to replace. For repair or retail shop owners, the margin comes to 90 percent, he says.

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Refurbished phones R

etailers and repair shops alike can

phones with replacement housings and components, observers agree. But getting into that business can prove problematic because suppliers sometimes insist upon large-scale purchases, says Yosopov. Before becoming a parts and used phone distributor, Yosopov entered the industry by opening a repair shop. He wanted to augment his repair business by offering used phones for sale and soon discovered he had three options. First, Yosopov could buy used units from a wholesaler who charged nearly as much as the phones brought on eBay or Amazon and required a purchase of at least 200 devices. Second, he could buy the ten or 20 phones he needed but would have to pay the wholesaler more than the devices cost online. Third, he could simply buy them on eBay or Amazon.

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For distributors, used phones pose risks because they might not sell in time to avoid depreciation, Yosopov repair shops are buying phones one or two at a time, he notes. It’s also of used phones available in their differing brands, models, colors and data storage capabilities, he says. Meanwhile, many of the used devices in the U.S. are shipped abroad for sale in other countries, says Yosopov. “If you’re able to unlock them, they’re worth a lot more there,” he notes because so many consumers get new phones here. Buy-back schemes provide one way of acquiring old phones in the U.S. and at the same time can subsidize the cost of repairs, says Roldan. For example, a consumer might go repair to an iPhone 7 costs $250. The shop can offer that customer $100 for an old iPhone 6 and thus reduce the

cost of the iPhone 7 repair to $150, he notes. them to consumersor sell them online or to wholesalers, Roldan says. Some of the old phones they receive are in good enough condition to resell without repairs, he notes. Providing used phones is becoming a core competency of some repair shops, and Sourcely provides an online platform to expedite buying phones from consumers, he says. Meanwhile, companies that specialize in used electronics equipment see an impending opportunity in secondhand cell phones, says Michaels. Until now, most of the equipment his company has handled has been has been in good enough shape that it didn’t need repair. But that’s changing as carriers become more aggressive in their efforts to compel consumers to turn in old phones, Michaels says.

Sometimes they’re offering $200 for trade-ins, for example, which could be more than the market value of the phones, he observes. It’s the carriers’ attempt to gain market share or retain subscribers, he notes. Whatever the goal, that pricing increases the number of phones traded in, Michaels says. But carriers don’t really want to deal with the large numbers of phones that need repairs that will come in as part of the new trade-in policy, Michaels continues. That provides his company with an opportunity to step in and buy the then make the repairs and sell the With all this emphasis on selling used phones in repair shops, it might seem likely that a move into selling new ones could take hold, too. But repair shops seldom offer new phones to their customers because they’re expensive to buy and to sell Rolden says.

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The importance of repair R

egardless of the approach that repair specialists choose – franchised or not, offering minutes or not – their numbers are continuing to grow and that trend appears likely to continue, Roldan says. “There aren’t any real barriers to entry,” he says. “Anyone can be in cell phone repair.” Even with easy access to the market, repair remains a great, mostly untapped source of income for repair specialists and cell phone stores alike, in Heydari’s view. “These channels

And the skills of the repair specialists constitute an invaluable asset for the industry, Heydari says. “They’re pretty intelligent, savvy people – they’re more than just clerks,” he concludes.

A special thank you from the Publisher & CEO of Wireless Repair Magazine, to all of the repair stores around the world. – Kathy Katcher The Prepaid Press extends its appreciation to Kathy for her assistance with this editorial.

www.WirelessRepairMagazine.com

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Wireless Repair Magazine Staff CEO & Publisher | Kathy Katcher Kathy@WirelessDealerMagazine.com COO | Laurette Veres Laurette@WirelessDealerMagazine.com CMO | Wayne Oâ&#x20AC;&#x2122;Niel Wayne@WirelessDealerMagazine.com Art Director | Thomas Vela Thomas@WirelessDealerMagazine.com Advertising & Sales Deputy | Amanda Pagan-Glass Amanda@WirelessDealerMagazine.com Research Analyst | David Katcher Lydia@WirelessDealerMagazine.com WDM News Anchor | Chelsea Rogers Chelsea@WirelessDealerMagazine.com Director of Finance | Jessica Hiatt Jessica@WirelessDealerMagazine.com Contributing Authors & Writers Meghan Lafferty Greg Murphy Dan Mieczyslaw Arlene Hauben | Professional writing services. Articles, content and marketing communications. Email: Arlene.hauben@gmail.com 305-206-4488 Wireless Repair Magazine is published quarterly as an independent, wireless industry publication in Houston, Texas. Written materials and requests may be mailed to: WirelessRepair Magazine, 1217 Prince Street, Houston, TX 77008 [not responsible for any unsolicited materials] For advertising or subscription inquiries, please call toll free 1

(800) 862-2609 or visit WirelessRepairMagazine.com

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