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Medium Market Sizing

iPhone X-Change

#Technology #Consumer Goods

Practice this intermediate market sizing case interview question from LEK in the Technology sector. Includes detailed problem prompt, clarifying questions, structured framework, and expert recommendation. Part of ProHub's 835+ consulting case library.

ProHub Comment

This is a structured market sizing case using a bottom-up methodology. Candidates must calculate TAM across three device verticals (phones, tablets, laptops) plus an 'Other' category by multiplying volume sold, proportion used, proportion U.S., and ASP. The case emphasizes clear quantitative analysis with straightforward inputs provided by the interviewer.

Estimated Time 25 minutes
Difficulty Medium
Source Duke
31 / 100
Our client, Electronics Co., is a U.S. based distributor of secondhand consumer electronic devices, i.e., phones, tablets, laptops, etc. Electronics Co. would like our help to analyze the total market size of various used consumer electronics verticals to provide them an outlook of their total market opportunity.

Clarifying Information

  1. Objective: Electronics Co. would like to understand the market size for secondhand electronic devices
  2. Model: Electronics Co. purchases used electronic devices from consumers and then sells them via their online, DTC platform
  3. Geography: Electronics Co. operations are based in U.S.
  4. Timeline: ASAP
Mock Interview
Interviewer

Our client, Electronics Co., is a U.S. based distributor of secondhand consumer electronic devices, i.e., phones, tablets, laptops, etc. Electronics Co. would like our help to analyze the total market size of various used consumer electronics verticals to provide them an outlook of their total market opportunity.

You

Thanks. Before analyzing, I'd like to clarify a few key questions...

Interviewer

Good question. Let me provide some background information...

You

Based on this, I suggest analyzing from these dimensions...

AI Score
Structure Analysis Communication Business Sense Quantitative
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Practice this case with AI Mock Interview

Electronics Co. seeks to understand the total addressable market for used consumer electronics. Through systematic market sizing across phones, tablets, and laptops using provided volume, usage rates, geographic penetration, and pricing data, the TAM is determined to be $2.1B, representing a sizeable market opportunity with geographic scalability and strong environmental value proposition.

Key Insights:

  1. Market sizing methodology: Start with U.S. population, filter by age and purchase behavior, apply repurchase rates and used goods adoption, then apply ASP to reach TAM
  2. Phones represent the largest market segment at $1.25B, with 20% used goods adoption and $50 ASP
  3. Geographic scalability and environmental benefits of reusing electronics are key market drivers for conscious consumers
  4. Business risks include quality control at scale, supply chain constraints, customer retention, and obsolescence of product support from legacy manufacturers

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