The global market for used smartphones in 2023 grew by 6.4% to 195 million units – and the demand is coming from emerging and developed nations.
The market was worth US$72.9 billion (A$106 billion) in sales, up 12.4% year on year, according to new data from International Data Corporation (IDC).
And although sales of used smartphones can’t compete in volume with new phones (195 million used units versus 1.17 billion new units shipped in 2023), the growth rate for sales of older phones continued to outstrip new products, despite growth rates for used models slowing over the past few years.
“The growth of the secondary smartphone market continues to outperform the new device market as the volume and quality of used and refurbished inventory across the channels improves over time,” said Anthony Scarsella, Research Director, Mobile Phones at IDC.
“New players continue to enter the market in numerous regions looking to grab a piece of this pie as sales of new devices have been slow to return to pre-pandemic levels.”
Still, growth rates for used models have slowed over the past few years.
“Inventory remains a critical issue as refresh rates continue to get longer in most developed economies, causing a shortage of premium models entering the secondary market,” IDC says.
Trade-in programs continue to “fuel the industry but only make up a portion of the total used inventory”, it says.
IDC Research Analyst at IDC, Diogo Santos, said “the fact that all used devices need to be processed, some requiring more intervention than others, makes this market lean towards higher-priced devices and more established brands”.
“Apple and Samsung dominate this category, accounting for close to 64% of the global used smartphone market. As the used device market matures and becomes more efficient, other brands and lower-priced models are expected to gain a larger share.”
The market for used smartphones is expected to reach 257 million units in 2028, with a five-year compound annual growth rate of 5.7%, according to IDC.
In comparison, IDC’s current forecast for the new smartphone market is a 2.8% CAGR over the 2023-2028 forecast period.
