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Used And Refurbished Phone Market Booms

The market in used smartphones, including officially refurbished units, is booming, with estimates global shipments hit 282.6 million in 2022 – a growth of 11.5 per cent on the 253.4 million the previous year.

International Data Corporation (IDC) suggest this will remain unabated, with used smartphone shipments hitting 413.3 million units in 2026, with a market value of US$99.9 billion, and a compound annual growth rate (CAGR) of 10.3 per cent from 2021 to 2026.

The driving factor for the global new and used smartphone market is trade-in programs, with new programs launching successfully in markets where the concept is still novel to local consumers, as well as speeding up refresh rates through telco and retail-driven promotions in markets such as the US, Canada and Western Europe that are already familiar with the idea.

This has all aided an increase in trade-in value (TIV), usual when demand for new devices is slow.

The rise in TIV has pushed prices up in the secondary market because users are getting more for their old units which helps drive upgrades.

As a result, an increase of sales of more expensive devices in the new market has created a circular situation, with more extreme trade-in deals featuring on premium devices.

Clearly, though, this situation can’t last forever, and narrow margins will eventually impact profits in the channel or for the vendor – or both.

“The used market was able to grow 11.5 per cent in 2022 thanks to the 6.1 per cent rebound we witnessed in the new market for 2021,” says Anthony SCarsella, research manager with IDC’s Worldwide Quarterly Mobile Phone Tracker.

“Used devices demonstrate more resilience to market inhibitors than new smartphone sales as consumer appetite remains elevated in many regions.

“Attractive price points are critical for growth as cost savings remain the primary benefit. However, a high-end inventory struggle due to elongated refresh cycles in the new market has used prices growing over 11 per cent in 2022.”



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