The European refurbished smartphone market reached record levels of sales and market share in 2023. Despite this growth, the sector has hit a period of stagnation due to declining device availability, shifting consumer habits, and regulatory uncertainties. These trends were discussed at the Retech Day event in Berlin, hosted by Dataxis, where Jan Stryjak from research company Counterpoint shared key insights.
Consumer behavior impacts device supply
A significant challenge is the reduced availability of used devices. Consumers are holding onto their smartphones longer, driven by smaller technological improvements and extended replacement cycles. This trend decreases the trade-in volume, limits refurbished inventory and weakens the market's growth potential. Simultaneously, emerging markets are experiencing rising local demand for refurbished smartphones, diverting supply away from Europe.
Regulatory complexities add to market hurdles
The EU regulatory environment such as CE-regulation and impact of import ban non-USC C devices as of December 2024 across Europe remains fragmented, complicating operations for businesses in the sector. Inconsistent pricing, classification standards, marginal VAT and logistical challenges in sourcing spare parts for older devices are persistent issues. The market’s structure, dominated by smaller companies, further hampers efforts to address these challenges cohesively. Counterpoint estimates that the EU's organized secondary mobile market will reach 27 million devices sold this year. Of these, one-third are imported, a portion that may be influenced by the aforementioned factors.
Sustainability drives demand for refurbished devices
On the positive side, growing environmental awareness is transforming consumer priorities. Refurbished and used smartphones are increasingly appealing as sustainable, cost-effective alternatives to new devices. Rising prices of new models and the slower pace of technological innovation make refurbished options more attractive. Retailers and telecom providers are expanding their refurbished offerings, recognizing this shift in consumer preferences.
Apple and Samsung dominate the market
Apple and Samsung lead the European refurbished smartphone market, with models such as the Apple iPhone 12, iPhone X, iPhone 11, Samsung Galaxy S21, and Galaxy S10 among the best-selling devices in 2023. This reflects the strong brand loyalty and high demand for quality in refurbished devices.
Opportunities lie in technology and regulation
Artificial intelligence and robotizing and automation is improving refurbishing processes, enabling higher-quality products and operational efficiency. Regulatory changes, if standardized across regions, could further boost consumer confidence in refurbished devices. As sustainability becomes a growing consumer concern, the refurbished smartphone market is poised to benefit from this evolving landscape.
Source: Counterpoint/Jan Stryjak at Retech Day
Market
Trade-in
Repair
Refurbishing
