ATRenew's Strategic Positioning in the Pre-Owned Smartphone Market: JD Partnership and iPhone 17 Catalyze Trade-In Demand and Stock Performance

The pre-owned electronics market in China is undergoing a seismic shift, driven by a confluence of strategic partnerships and product innovation. ATRenew (RERE), a leader in the circular economy for consumer electronics, has positioned itself at the forefront of this transformation through its renewed collaboration with JD.com, one of China's largest e-commerce platforms. This partnership, extended through December 31, 2027, and the recent launch of Apple's iPhone 17 are creating a virtuous cycle of trade-in demand, operational efficiency, and stock performance that could redefine the sector.

Strategic Synergy with JD.com: A Foundation for Growth

ATRenew's renewed business cooperation agreement with JD.com, effective June 1, 2024, underscores a strategic alignment to dominate the second-hand electronics market. The partnership leverages JD.com's unparalleled logistics network and user traffic, combined with ATRenew's expertise in pre-owned device transactions and recycling. By integrating JD's technology support and fulfillment capabilities, ATRenew has significantly enhanced its supply chain efficiency, reducing delivery times and expanding its service footprintJD.com Delivers iPhone 17 Series to Over 30,000 Customers …^[1].

A key milestone in this collaboration was the launch of 25 self-operated and 28 franchised stores in May 2025, strategically located in key Chinese citiesRERE.US Corporate Blog – May 2025^[5]. These physical touchpoints not only strengthen ATRenew's brand visibility but also streamline trade-in processes for consumers. The “Old-for-new Service” model, where JD handles online sales and delivery while ATRenew manages on-site trade-ins, has proven particularly effective in reducing friction for customersBusiness Cooperation Framework Agreement by ATRenew Inc.^[2]. This hybrid approach aligns with national subsidy policies aimed at stimulating consumption, further boosting ATRenew's market shareDan Ives suggests Wall Street underestimates iPhone 17 demand^[4].

iPhone 17 Launch: A Catalyst for Trade-In Demand

The September 2025 launch of the iPhone 17 has amplified demand for trade-in services, directly benefiting ATRenew's operations. According to a report by Gizmogrind, trade-in volumes for iPhones surged to four times the same period in 2024 within hours of the iPhone 17's releaseJD.com Delivers iPhone 17 Series to Over 30,000 Customers …^[1]. This surge was preceded by record-breaking pre-sales on JD.com, where iPhone 17 units sold out within minutes of the pre-order window openingJD.com Delivers iPhone 17 Series to Over 30,000 Customers …^[1].

The iPhone 17's advanced features—such as the A19 chip, 48MP triple-lens camera system, and 256GB base storage—have rendered older models like the iPhone 15 and 14 less competitive. As a result, trade-in values for these older devices have dropped by up to 24.1%, creating a strong incentive for consumers to upgradeiPhone 17 Reveal Sparks Resale Panic: Pro Tips to Maximize Your …^[3]. ATRenew, with its extensive network of stores and JD-backed logistics, is uniquely positioned to capitalize on this shift. The company's Q1 2025 financial results, which showed a 27.5% year-over-year revenue increase to RMB 4.65 billion, highlight the direct correlation between product launches and trade-in activityDan Ives suggests Wall Street underestimates iPhone 17 demand^[4].

Financial and Stock Performance: A Test of Resilience

The iPhone 17's market impact has translated into robust financial performance for ATRenew. In Q2 2025, the company reported revenue of 4.99 billion CNY, a 32.16% year-over-year increase, alongside a 777.75% surge in net income to 72.34 million CNYATRenew (RERE) Stock Price & Overview^[6]. These figures underscore ATRenew's ability to convert short-term market dynamics into long-term profitability.

The stock market has responded favorably, with ATRenew's shares rising by 98.18% over the past 52 weeksATRenew (RERE) Statistics & Valuation - Stock Analysis^[7]. This outperformance is partly attributed to investor confidence in the company's strategic positioning. As noted by analysts, ATRenew's forward PE ratio of 9.55 suggests undervaluation relative to its growth trajectoryATRenew (RERE) Statistics & Valuation - Stock Analysis^[7]. The recent $50 million share repurchase program further signals management's commitment to shareholder valueATRenew (RERE) Stock Price & Overview^[6].

Market Dynamics and Competitive Landscape

While the iPhone 17's launch has created a temporary dip in older models' trade-in values, ATRenew's partnership with JD.com provides a buffer against volatility. JD's logistics arm reported an 11% year-on-year revenue growth in Q1 2025, reflecting the scalability of their integrated supply chainDan Ives suggests Wall Street underestimates iPhone 17 demand^[4]. This resilience is critical in a market where competitors like Google and Samsung have also introduced aggressive trade-in incentivesiPhone 17 Reveal Sparks Resale Panic: Pro Tips to Maximize Your …^[3].

Analysts like Dan Ives argue that the iPhone 17's demand is underestimated, with potential to drive Apple's 2026 growthDan Ives suggests Wall Street underestimates iPhone 17 demand^[4]. For ATRenew, this means sustained trade-in activity and a broader customer base seeking to leverage subsidies and recycling programs. The company's plan to expand to 5,000 stores by 2027RERE.US Corporate Blog – May 2025^[5] positions it to capture this demand, further solidifying its leadership in the circular economy.

Conclusion: A Win-Win for Investors and the Circular Economy

ATRenew's strategic partnership with JD.com and the iPhone 17's market impact have created a powerful flywheel effect: enhanced logistics drive trade-in convenience, product innovation fuels demand, and financial performance validates the model. For investors, the combination of operational scalability, market timing, and policy tailwinds makes ATRenew a compelling play in the pre-owned electronics sector. As the circular economy gains traction, ATRenew's ability to adapt to technological shifts—like the iPhone 17's release—will likely determine its long-term success.