Everyday Business Case Studies
The Phone Repair Shop: Skills and Spare Parts
How mobile repair shops earn from skilled labour and spare parts, why right-to-repair matters, and how changing phone designs affect them.
India has lakhs of mobile phone repair shops, from tiny stalls to busy shops in electronics markets.
How they earn
- Labour charges for repairs like screen replacement, battery changes and software fixes.
- Margins on spare parts, often sourced from wholesale markets or imported.
- Accessories: covers, chargers and screen guards.
Skills as capital
The main asset is skill. Many repair technicians learned on the job or through short courses. Skilled technicians can charge more and build loyal customers.
Competition
- Authorised service centres offer genuine parts but charge more.
- Other repair shops nearby.
- Phone makers’ policies: some brands restrict access to parts and repair manuals.
Right to repair
The right to repair movement argues that consumers and independent shops should have access to parts, tools and information. India launched a right to repair portal in 2022, where some companies share repair information.
Changing designs
Phones with glued components and proprietary parts are harder to repair. Some brands now make batteries more replaceable, partly due to regulations in other countries, such as EU rules.
Key lesson
Service businesses based on skills can thrive, but depend on access to parts and the design choices of big manufacturers.
A customer's phone screen cracks. An authorised centre quotes 8,000 rupees; a local repair shop replaces it for 3,500 using a compatible part. The shop earns from both labour and the part.
They also sell accessories and parts, and their business depends on manufacturers' repair policies.
- Repair shops earn from labour, spare parts and accessories.
- Skills are their main asset.
- Authorised centres and brand policies affect competition.
- Right to repair efforts aim to improve access to parts and information.
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