Buying and selling used phones and tablets used to be something that happened on a handful of online marketplace sites. But the used and refurbished device market has grown considerably over the past decade, and a new IDC (International Data Corporation) forecast predicts that the used phone market would be worth \$52.7bn by 2023 with a compound annual growth rate (CAGR) of 13.6% from 2018 to 2023. This growth can be attributed to an uptick in demand for used phones and tablets that offer considerable savings compared with new models.
Refurbished and used devices continue to provide cost-effective alternatives to both consumers and businesses that are looking to save money when purchasing one. There are plenty of other benefits associated with the used device market. Used and refurbished devices can be sold with warranties and can also be insured with proof of purchase. Third-party vendors/platforms, such as Verizon, Amazon, etc., provide attractive offers to customers for refurbished devices. Maximizing the longevity of devices through second-hand trade also reduces their environmental impact and helps in recycling and reducing waste. The impact of the COVID-19 outbreak may further boost this segment as consumers cut back on discretionary spending and buy phones and tablets only for immediate needs.
The rising potential of this comparatively under-the-radar market fuels the need for an ML-based solution to develop a dynamic pricing strategy for used and refurbished devices. ReCell, a startup aiming to tap the potential in this market, has hired you as a data scientist. They want you to analyze the data provided and build a linear regression model to predict the price of a used phone/tablet and identify factors that significantly influence it.
The data contains the different attributes of used/refurbished phones and tablets. The data was collected in the year 2021. The detailed data dictionary is given below.
- brand_name: Name of manufacturing brand
- os: OS on which the device runs
- screen_size: Size of the screen in cm
- 4g: Whether 4G is available or not
- 5g: Whether 5G is available or not
- main_camera_mp: Resolution of the rear camera in megapixels
- selfie_camera_mp: Resolution of the front camera in megapixels
- int_memory: Amount of internal memory (ROM) in GB
- ram: Amount of RAM in GB
- battery: Energy capacity of the device battery in mAh
- weight: Weight of the device in grams
- release_year: Year when the device model was released
- days_used: Number of days the used/refurbished device has been used
- normalized_new_price: Normalized price of a new device of the same model in euros
- normalized_used_price: Normalized price of the used/refurbished device in euros