India’s second-hand smartphone market is growing fast

India is the world’s second-largest smartphone market, driven by its massive population and growing digital adoption. Despite this, total smartphone sales only increased by 2% in 2024, with feature phone sales continuing to decline. The slow growth of new smartphone sales is offset by a booming secondary market. India has now become the third-largest market for second-hand smartphones, following China and the US. In 2024, the country’s organized secondary market grew by 10%, with 5.7 million devices shipped. The demand is driven by affordability, financing options, and better value for money, according to a report from CCS Insight.

As in every market affordability is a key driver

The significant price gap between new and second-hand smartphones plays a crucial role in consumer decisions. Many used devices are priced 50% lower than their brand-new counterparts, making them attractive to a broad demographic. Even young consumers who seek premium smartphones at lower costs are turning to the secondary market.

Market remains largely unorganized

Despite its rapid growth, 85% of India’s second-hand smartphone sector remains unorganized. However, platforms like Flipkart, Cashify and Amazon are stepping in to improve consumer experience, offering warranties, financing options, and structured trade-in programs.

Trade-ins and local sourcing fuel growth

E-commerce giants such as Flipkart and Amazon are promoting “buy with exchange” programs, making trade-ins more accessible. Meanwhile, local sourcing of devices, combined with anti-dumping laws, is fostering a circular economy, further strengthening the second-hand market.

Brand leaders in the secondary market

Xiaomi remains the dominant player in India's organized second-hand smartphone market. However, Apple is gaining traction in the refurbished segment, driven by strong demand for premium smartphones at lower prices. The availability of used iPhones provides Apple with an alternative path to expanding its presence in India while also generating revenue and high margins through iOS services offerings at the same time.

Challenges persist in the refurbishment sector

While the market is growing, challenges remain. The limited availability of 5G smartphones, complex manual grading processes, and inconsistent spare parts supply hinder progress. Companies like ControlZ are addressing these issues by integrating automation into testing and grading, improving efficiency and quality.

The impact of the Apple iPhone 16e

A key development to watch is the launch of the iPhone 16e. With flagship performance at a lower price, it directly competes with refurbished Apple iPhones, potentially lowering prices for older models and pressuring the refurbished segment.

Outlook for India’s secondary market

The organized second-hand smartphone market is projected to grow at an 8% compound annual growth rate from 2024 to 2028. Continued investment in technology, consumer education, and trade-in programs will drive expansion, opening new opportunities for brands and consumers alike.