B-Stock and IDC: Rising demand for used devices reshapes global mobile market

High prices for new premium models and the growing demand in emerging markets are driving much of the expansion. With flagship devices like the Apple iPhone reaching prices above € 1,000, consumers increasingly turn to refurbished and pre-owned models. Shortages of high-end new devices, particularly iOS models, have also reinforced the strength of the secondary channel.

Forecasts show rising used phone share

In 2024, one in seven phones shipped worldwide was a used device. IDC forecasts this share will exceed 16% by 2025. Growth hotspots include emerging markets such as India, Nigeria, and the Middle East, where affordability is crucial, as well as Western Europe where regulations are pushing for quotas of used devices in circulation.

Average selling prices and residual values are rising thanks to higher refurbishing standards and OEM-certified renewed products. The Samsung Galaxy S23, for example, retains more value than its predecessors due to better refurbishment practices. Importantly, the gap between B2B and B2C pricing is narrowing, with secondary prices occasionally surpassing retail for new models.

Tariffs and supply chains reshape markets

Tariff disputes between the U.S. and China continue to affect the market. Inventory once intended for the U.S. has been redirected to free trade zones such as Hong Kong and the UAE. Suppliers are also shifting production to India and other countries. These disruptions have pushed up average selling prices and caused stockpiling of components.

At the same time, environmental regulations are pushing manufacturers toward circular economy initiatives and standardisation, such as the wider adoption of USB-C. The used device supply chain has proven more flexible compared to the longer lead times of new device production.

Trade-in programs influence inventory

Carrier trade-in and upgrade promotions remain vital in supplying the secondary market. However, aggressive campaigns, including offers that do not require trade-ins, have shifted traditional flows. This has boosted new device sales while impacting the quality and source of used inventory.

Nonetheless, trade-in programs continue to feed premium pre-owned devices into circulation, particularly in North America, Western Europe and Asia-Pacific. Industry observers expect trade-in activity to accelerate further in anticipation of the Apple iPhone 17 launch later this year.

Upgrade cycles driven by Apple iPhone

The upcoming Apple iPhone 17 is forecasted to trigger a significant upgrade cycle, with a modest price rise of around € 50 on premium models. Apple maintains around 53% market share in North America, underscoring its dominance in the region.

Premiumisation continues to define the market, with more than 70% of new shipments in high-end price categories. Used Apple iPhone devices are vital in making iOS more accessible in emerging markets at affordable price points.

Foldable devices face challenges

Foldable smartphones represent a growing segment but remain a challenge in the secondary market. High repair costs, particularly for hinge issues, lower consumer confidence. Still, refurbishers are developing stronger repair capabilities, slowly improving residual values for foldables.