The secondary market is shifting as automation and data drive growth in Europe

Growth is being driven by macroeconomic pressures, limited year-on-year innovation in new devices, and consumers’ increasing trust in the secondary market. The appeal is clear: buyers can access high-quality smartphones at more affordable prices, and many see a two-year-old device as nearly equivalent to a new one.

Apple maintains strong secondary dominance

Apple continues to dominate the European secondary smartphone market with about 70% share. The Apple iPhone holds its residual value far better than Android alternatives, thanks to extended software support, consistent hardware quality, and brand loyalty.

A one-year-old Apple iPhone typically retains around 40% of its original value, compared to just 22% for a Samsung model. This residual value gap incentivizes trade-ins, reinforcing Apple’s grip on the secondary space. Consumers who might otherwise have bought a new mid-range Android model are now choosing a second-hand Apple iPhone, underlining the strength of Apple’s ecosystem.

Samsung looks to close the gap

Samsung has made addressing the residual value gap a strategic priority. In markets like the UK, US, and Korea, initiatives such as Samsung Club guarantee 50% residual value on Galaxy devices when upgrading. By creating a stronger supply of high-quality used Galaxy devices, Samsung aims to improve its position in the secondary market.

Premium models, such as the Galaxy S Ultra range, are already closer in value retention to Apple iPhones, narrowing the gap to around 10-15%. Closing this gap further is critical to Samsung’s long-term competitiveness.

Renewal cycles create opportunity

The European market is currently in a renewal cycle sweet spot. Many consumers who bought devices during the pandemic, four to five years ago, are now ready to upgrade. This coincides with the launch of the Apple iPhone 17, which is expected to drive trade-in activity for a limited three-month window.

Retailers see opportunities not only in selling new models but also in generating conversations around trade-ins and second-hand purchases. Around 40-45% of devices sold in the secondary market are from the last three generations, underscoring consumer demand for relatively recent models.

European market outpaces the US

Data suggests that current and intended adaption of used devices in Europe is higher than in the US, reflecting strong local demand. A quarter of European consumers say they would consider buying a second-hand smartphone, a trend particularly strong among younger demographics fuelled by affordability.

The enterprise sector is also increasingly important, with one in four German businesses already procuring second-hand smartphones or laptops as part of sustainability commitments. Device-as-a-Service (DaaS) and rental models are also gaining traction, ensuring a steady supply of devices feeding into the secondary ecosystem.

However, a persistent challenge is consumer behaviour. Many users still store old smartphones in drawers, where they quickly lose value. Industry experts stress that education is key: devices lose value as soon as they are no longer in use, and trade-ins help recover that value.

Automation becomes essential

Automation is increasingly viewed as the key enabler of efficiency and growth in the European secondary market. Automated grading and processing ensure consistency, eliminate subjectivity, and generate granular data that improves value assessment. Faster processing also reduces time-to-market, helping businesses capture value sooner.

Despite these advantages, only around 15% of devices in Europe are processed using robotic automation, compared to over 80% in the US. The fragmented European market makes achieving scale more difficult, but modular automation solutions are emerging as stepping stones.

These modular approaches, covering tasks like grading, testing, wiping, or polishing, allow companies to introduce automation incrementally and realize immediate benefits. Over time, automation can be scaled and optimized, delivering richer data and supporting better compliance.

Regulation drives data focus

The EU’s Digital Product Passport (DPP), part of the Ecodesign for Sustainable Products Regulation, will become mandatory for all smartphones in late 2027. The DPP will act as a secure digital identity for each device, containing lifecycle information such as durability, repairability, spare part availability, and environmental footprint.

Automation will be crucial in providing the data required to populate the DPP. By building digital records through automated processes, businesses will be prepared to comply with the regulation while also improving transparency and trust with consumers and enterprise buyers.

Rising trade-in and circular goals

Trade-in rates in Europe are expected to almost double by 2030, rising from 9% to 17%. Operators will play a central role by introducing forward buy-back models and standardizing trade-in programs.

Sustainability commitments by enterprises and regulatory pressures are also accelerating circular adoption. With two-thirds of large companies already incorporating sustainability into procurement, second-hand smartphones are becoming an integral part of corporate device strategies.

Takeaways for the industry

The European secondary smartphone market is evolving rapidly, shaped by consumer demand, brand strategies, and regulatory changes. Apple remains dominant, but Samsung and others are fighting to close the value gap. Automation will be essential to address fragmentation and unlock efficiency, while regulation such as the DPP will enforce greater data transparency.

For retailers and operators, the next few years offer significant opportunities. Raising awareness among consumers about the value of trade-ins, educating them on second-hand quality, and adopting automation early will provide competitive advantages in a market that is becoming increasingly data-driven.