Used smartphones and refurbished phones provide an alternative option for consumers who don’t want to get a new smartphone at full price and looking to save money while replacing the existing model.
According to the latest IDC report, the global shipments units of used smartphones including both officially refurbished and the second smartphone is expected to reach 225.4 million units in 2020.
This represents an increase of 9.2% over the 206.5 million units shipped in 2019. IDC projects used smartphone shipments will reach 351.6 million units in 2024 with a compound annual growth rate (CAGR) of 11.2% from 2019 to 2024.
Due to COVID-19, the new smartphone sales get affected in this context IDC predicts that the mobile phone market will decline by 6.4% in 2020.
“In contrast to the recent decline in the smartphone market, as well as the forecast for minimal growth in new shipments over the next few years, the used market for smartphone shows no sign of slowing down across all parts of the globe”, says Anthony Scarsella, research manager at IDC
“Refurbished and used devices continue to provide cost-effective alternatives to both consumers and businesses that are looking to save money when purchasing a smartphone. Moreover, the ability for vendors to push more affordable refurbished devices in markets where they normally would not have a presence is helping these players grow their brand as well as their ecosystem of apps, services, and accessories.” Anthony added
IDC said that most of the expected growth of second-hand smartphones is driven by the fact that the old-for-new policy of mobile phone manufacturers is pushing more and more consumers to use old phones to offset the cost of expensive new phones.
“Although the COVID-19 pandemic has posed challenges for secondary market participants around able-bodied workers and logistics, most of the industry has been able to satisfy the demand for refurbished smartphones. Once the pandemic begins to fade, those that we’re able to invest in technology will be well-poised to prosper during the recovery,” said Will Stofega, program director, Mobile Phones.