Every second refurbished phone sold is an iPhone, research shows

Counterpoint Research’s market tracker has revealed that global secondary smartphone sales grew by 5 per cent year-on-year in 2022, compared to the 12 per cent drop in new smartphone shipments for the same period.

The rise in secondary smartphone sales indicates a preference among cost-minded consumers for refurbished phones as new phones experience rising component prices and inflation.

Apple was the largest player in the refurbished smartphone market, with a 16 per cent growth in sales, capturing 49 per cent of the market in 2022, up from 44 per cent in 2021. Samsung followed with 26 per cent of the market.

Counterpoint's Senior Analyst, Glen Cardoza, stated that while supply bottlenecks limited the supply of refurbished smartphones, consumers were holding on to new smartphones for longer, causing a decline in refurbished smartphone sales in most emerging markets, including Latin America, Southeast Asia, India, and Africa. Nevertheless, due to a 17 per cent decline in China's refurbished smartphone sales, India became the largest refurbished smartphone market in 2022.

Cardoza also observed that refurbished smartphone players across countries were expanding their domestic market, which could reduce China's imports and exports of refurbished smartphones.

As 5G-capable smartphones gain popularity worldwide, refurbished 5G smartphones will increase, leading to declining demand and a higher inventory of 4G refurbished smartphones.

Despite these market trends, IDC forecasts that global used smartphone shipments would reach 413.3 million units in 2026, with a CAGR of 10.3 per cent from 2021 to 2026, thanks to trade-in programs and device premiumization.