Hardware
Used smartphones to hit $100bn by 2026
The global used smartphone market reached 282-million units last year and is expected to grow by 10% a year for the next four years.
International Data Corporation (IDC) estimates worldwide shipments of used smartphones, with refurbished and used smartphones, reached 282.6-million units in 2022. The unit growth represents an 11.5% increase over the 253.4-million units shipped in 2021.
This growth is expected to continue as it forecasts used smartphone shipments will reach approximately 413.3-million units in 2026 with a compound annual growth rate (CAGR) of 10.3% from 2021 to 2026. The value of the market in 2026 is expected to be just under $1–billion.
Trade-in programmes continue to be the driving factor for the used smartphone market globally. We have witnessed programmes launch successfully across multiple regional markets where trade-in is still a concept for local consumers. In markets from US, Canada, and Western Europe, trade-in continues to play a significant role in speeding up refresh cycles through telco and retail-driven promotions. This has contributed to an increase in trade-in value (TIV), which is when demand for devices is slow. The rise in TIV has pushed prices up in the secondary market due to consumers getting more for their old devices to help drive upgrades.
The increased sale of higher-priced devices in the market has also created a circular effect as many of these trade-in deals feature primarily on premium devices. How long these aggressive trade-in offers last remains a big question for buyers and sellers. The narrow margins will impact the overall profits of the channel, vendor, or perhaps both.
“The used market was able to grow 11.5% in 2022 thanks to the 6.1% rebound we witnessed in the market for 2021,” says Anthony Scarsella, research manager at IDC’s Worldwide Quarterly Mobile Phone Tracker. “Used devices demonstrate more resilience to market inhibitors than smartphone sales as consumer appetite remains elevated in many regions.”
“Attractive price points are critical for growth as cost savings remain the primary benefit. However, a high-end inventory struggle due to elongated refresh cycles in the market has used prices growing over 11% in 2022.”
