After several years of double-digit growth, India’s organised refurbished smartphone market, one the largest globally, is set for its first contraction in 2025. According to CCS Insights, the market saw a 6% drop in sales volume during the January to March quarter compared to the same period in 2024. Volumes fell to 1.3 million units from 1.4 million a year ago, with analysts predicting a full-year decline of between 5% and 7%.
Shift in retail channels affects supply
A key driver of the slowdown is a shift in consumer behaviour. With new smartphone sales moving increasingly offline, fewer traded-in devices are entering the organised refurbished supply chain. Devices exchanged online often flow to structured refurbishers, while those traded offline are more likely to end up in the unorganised market, especially through local stores.
Offline retail thrives in premium segments
“India’s smartphone market is witnessing a fundamental shift as previously online-centric brands embrace offline retail for sustainable growth,” said Sanyam Chaurasia, analyst at Canalys. From Q1 2022 to Q1 2025, offline average selling prices rose from € 180 to € 278, compared to a more modest increase from € 183 to € 226 online. Premium Apple iPhone models and high-end Android devices are increasingly being sold offline, reducing the flow of older handsets to the organised refurbished market.
Supply constraints impact refurbished players
ReFit Global CEO Saket Saurav confirmed the industry is now facing a 30% to 35% inventory shortage, which could rise to 40% depending on demand fluctuations. The impact is most pronounced in the May to July period when online sales traditionally dip. Players are now stockpiling devices earlier in the year and working to source inventory directly from brands or alternative international channels.
Diversification of sourcing becomes necessary
ControlZ, another refurbished smartphone seller, reported a 10% to 15% supply shortfall, especially for Android devices. Counterpoint Research analyst Glen Cardoza noted that “organised players have diversified their supply channels to avoid dependence on any single avenue.” Though the overall market continues to expand, it is doing so at a slower pace than during the post-pandemic boom. The market, analysts say, is now maturing and entering a period of consolidation.
Unorganised channels remain dominant
A major challenge for the organised sector is that most offline trade-ins, unless done via large retail chains like Reliance Digital or Croma, do not enter the formal refurbishment channel. Ekta Mittal of CCS Insights explained, “Offline exchanges through mom-and-pop stores typically fuel the unorganised market, limiting supply for compliant refurbishers.”
Market
Trade-in
Repair
Refurbishing
