Secondary Market

As the demand for new smartphones drops by 3-4% in India this festive season, the refurbished smartphone market is seeing a notable surge. Industry experts and market analysts reveal that consumers are increasingly trading in older models for premium devices, contributing to the growth of this sector. Refurbished smartphone sales are growing in the high single digits, a trend that reflects the changing preferences of Indian consumers. This increased demand will most definitely have an impact on global secondary mobile market as it will influence worldwide supply heavily.

Refurbished smartphones to grow by 8% annually until 2028

According to IDC India, the refurbished smartphone market is projected to grow by 8% annually, reaching 26.5 million units by 2028. Consumers looking for affordable alternatives for remote learning, work, and entertainment are driving this expansion. Many are turning to used smartphones when new models are out of their financial reach.

Improved smartphone hardware, along with rising device prices, is making refurbished phones an attractive option for those looking to upgrade or purchase their first smartphone. "The aspiration to own a quality device without paying a premium is driving demand for used smartphones," IDC stated.

Demand for 5G handsets fuels refurbished market in smaller cities

Increased demand for 5G smartphones, particularly in tier-2 and tier-3 cities, is further driving the growth of refurbished phones. Nakul Kumar, COO of Cashify, one of India’s leading players in the refurbished segment, notes that 5G models now account for 75% of refurbished smartphone sales. These 5G handsets are sold at a higher price point, making refurbished options more appealing in smaller towns and cities.

Despite a slowdown in growth after the high demand of 2021 and 2022, the refurbished segment is still expected to outpace new smartphone sales during the festive season. Many users who bought their first second-hand devices during the pandemic are now upgrading, pushing the average selling price of refurbished phones higher.

Average selling prices rise as second-hand Apple iPhone sales soar

The average selling price of refurbished smartphones, which typically range between €115 and €140 for brands like Xiaomi and Samsung, is increasing due to the rising popularity of second-hand iPhones. Cashify reports that second-hand iPhones are now selling for between €175 and €825, depending on the model and condition, with demand far outstripping supply.

Kumar added that Cashify expects a 30-50% month-on-month increase in sales volumes this November, as more consumers trade in their old devices for premium models. Despite improved supply compared to last year, demand remains higher than supply across all price segments.

Via: Businessfast