Secondary Market

Refurbished and used smartphone sales in Japan are on track to achieve remarkable growth, as the market anticipates a record high for the sixth consecutive year in the fiscal term ending in March. According to the MM Research Institute, consumer purchases of used smartphones are projected to reach 3.15 million units, reflecting an increase of approximately 420,000 units from the previous year.

Rising market share

The rising demand for used smartphones is underscored by their growing share of total smartphone sales, which is expected to rise from 9.7% last year to 10.8% this year. This trend is primarily attributed to the escalating costs of new devices, as consumers seek more affordable alternatives. The latest models, such as Apple's iPhone 16, are priced significantly higher, with the cheapest variant exceeding € 780 and "pro" versions reaching € 1.300 in Japan.

Practical reasons for demand

Consumers are also opting for used smartphones for various practical reasons. Many individuals are in search of a secondary device for distinct purposes, such as personal and work-related communication. In corporate settings, it is increasingly common for companies to provide smartphones to employees. The employer typically covers the device and communication fees, allowing employees to make work-related calls seamlessly.

Trend among younger people

Moreover, there is a notable trend among younger demographics who desire their own phone numbers alongside the smartphones provided by their employers. These individuals are increasingly leaning toward purchasing used devices instead of new ones. An industry expert highlighted this shift, noting, "Most office workers connect social networking services (SNS) such as Line, Instagram, and X (formerly Twitter) to their personal phone numbers." This behavior indicates a common practice of carrying two smartphones.

Key market players

Major players in the Japanese used smartphone market, such as Belong and Aucnet, are actively participating in this booming sector. Both companies operate trade-in schemes and cater to both local and international markets, further driving the growth of used smartphone sales.

Conclusion

In summary, the demand for used smartphones in Japan is fueled by the high cost of new devices and the desire for secondary phones, marking a significant shift in consumer purchasing behavior.