Market
13
Oct
2024
3
min read

India’s booming refurbished smartphone market: a key driver for growth and affordability

India’s smartphone market is the second largest globally, shipping 145-150 million new devices annually. With approximately 650 million users, smartphone penetration stands at 46%, presenting still a vast growth potential for all players in the smartphone ecosystem. Despite a modest growth in 2021 due to the demand for remote learning and media consumption, the market has faced challenges in 2022 and 2023. Rising average selling prices (ASP) and economic pressures have extended the replacement cycle from 24 to 36 months, slowing new smartphone sales. However, one segment is in particularly booming according to a latest survey from IDC.

Why refurbished smartphones are gaining traction

The shift in India’s smartphone market dynamics is pushing consumers toward refurbished options. The growing prices and better hardware quality of new devices make them less accessible to the mass market. As a result, many consumers—both those upgrading and first-time buyers—opt for refurbished models to fulfill their aspirations affordably.

The demand for 5G devices is also influencing this shift. Only about one-third of Indian smartphone users currently own 5G-capable devices. Due to the price gap between 4G and 5G models and the limited availability of affordable 5G phones under INR 10,000 (USD 125), many consumers prefer mid-range refurbished smartphones.

According to IDC’s latest research, India ranks third globally in refurbished smartphone volume, following China and the USA. In 2024, the market is expected to trade 20 million units with a 9.6% YoY growth, surpassing the 5.5% YoY growth of new smartphone shipments. In comparison. European secondary mobile market is estimated to be just slightly bigger than India in 2024.

Apple and Xiaomi dominate the refurbished market

The rising consumer aspiration to own mid-premium or premium smartphones significantly contributes to the refurbished market’s growth. Apple leads in this segment, accounting for a quarter of the refurbished market in India, with older Apple iPhone models like the iPhone 11, 12, and 13 being the most popular. Xiaomi, which led the new smartphone market for 20 consecutive quarters, holds the second position, followed by Samsung. Together, these brands make up about two-thirds of India’s refurbished market.

Major players reshaping the market

The Indian refurbished market has traditionally been unorganized, but startups like Cashify, Budlii, Instacash, and Yaantra are changing that. By expanding their online and offline presence, these companies have established trust and reliability among consumers. Cashify, for instance, operates over 200 stores in 100 cities, targeting both metro areas and Tier 2 & 3 towns.

Yaantra, owned by Flipkart and branded as Flipkart Reset, focuses mainly on online sales but also collaborates with Airtel for an offline presence in Delhi and Hyderabad. These efforts are helping organize the market, making quality smartphones more accessible to Indian consumers.

Future outlook: growth and opportunity

IDC projects the refurbished smartphone market in India to grow at an 8% CAGR over the next five years, reaching 26.5 million units per year by 2028. This growth reflects the market’s potential in increasing smartphone adoption, creating new revenue streams for channel players, addressing e-waste concerns, and generating employment.

Interested in the global market for used electronics?

From now on, you'll never miss a thing and can easily stay up to date with the latest developments in the secondary market. Sign up today for the newsletter from secondarymarket.news. It's filled with the latest news, trends, developments, and gossip. Stay informed and don't miss out on anything!

Daily (except on Sundays), you'll receive the latest news from the global secondary market straight to your inbox after registering. This way, you'll always stay up to date with the latest secondary market developments and trends.

Sign up for our newsletter

Thank you for registering for the newsletter

From now on, you'll always stay informed and won't miss out on the latest trends and developments in the global secondary market for used electronics.
Oops! Something went wrong while submitting the form.
© 2024 Secondary Market News. All rights reserved.
Privacy & Cookies