Japan’s secondary mobile smartphone market reaches new highs as new device prices soar

Growth trajectory to continue until 2028

MM Research forecasts further expansion, with sales potentially climbing to 4.38 million units by fiscal 2028. The firm attributes this trend to rising costs associated with the yen’s depreciation and increased material prices, making new smartphones less accessible for many consumers. Despite the release of new models, such as Apple's latest iPhone in September, Vice President Hideaki Yokota noted that consumers remain hesitant to spend on high-priced devices.

Increasing comfort with usedproducts

Yokota highlighted the growing acceptance of secondhand smartphones, stating that many users find them convenient and functional without the need for costly upgrades. The report also indicates that international visitors, particularly from China, are boosting sales by purchasing used iPhones in good condition during their stay in Japan.

Market share of used smartphones rising

Reflecting their growing popularity, used smartphones are expected to constitute 10.8% of Japan’s overall smartphone sales in fiscal 2024, up from 9.7% in fiscal 2023. Belong Inc., a specialist in used smartphone sales, observed a rise in corporate demand as well, with digital devices being increasingly utilized for inventory management and electronic medical records within the restaurant and healthcare sectors.

Government efforts to support the market

In a bid to further bolster the secondhand smartphone market, an expert panel from Japan’s communication ministry proposed a policy change in September. The recommendation aims to ban telecom carriers from restricting the use of secondhand devices due to previous owners’ unpaid bills, removing a barrier for potential buyers and enhancing market fluidity.