The International Data Corporation (IDC) has said that the global used smartphone market is growing fast and is expected to be worth $110 billion by 2027 and register 431 million unit sales that year.
IDC noted that the increasingly important sector would grow even faster if more second-hand inventory was available.
According to it, inventory of used smartphones depends on consumer uptake of new, premium models developed by the likes of Apple, Samsung and others. It noted that in times of inflation and economic uncertainty, consumers hang on to their old smartphones for longer than they would in better times.
Largely, the research house noted that “used smartphone” market was already worth $64.7 billion in 2023 and it predicted that the market will grow rapidly to be worth $109.7 billion in 2027. It revealed that the number of used smartphones shipped in 2023 was 309.4 million, up from about 282 million in 2022, and will reach 431.1 million units in 2027, representing a compound annual growth rate (CAGR) of 8.8 per cent over the five years between 2022 and 2027.
It stressed that the supply of available used smartphones is, perforce, as variable as the ever-changing fortunes and strategies of the makers of new ones.
IDC said recently, that global geopolitical problems have had a major impact on the global mobile device sector, as have supply chain difficulties and interruptions, increasing prices and intensifying consumer resistance to the pressure exerted by manufacturers to upgrade to the latest shiny device.
According to the body, consumers’ purse strings are tight and they are now hanging onto their old smartphones for longer, saying refresh rates for new smartphones “in most developed markets have extended past 40 months, which has caused a shortage of available inventory for the secondary market.”
It noted that what is certain, though, is that demand for used and refurbished smartphones is growing and will continue to do so for the foreseeable future.
However, IDC said the reality is that there aren’t enough used smartphones available to meet demand, noting that sales of new smartphones have been declining as consumers and enterprises tighten their belts, inflation bites and geopolitical relations continue to worsen.
IDC noted recently that it expects global smartphone shipment numbers to have shrunk by about 3.2 per cent year on year to 1.17 billion in 2023.
Given those factors, it is not surprising then that sales of used smartphones were up by almost 10 per cent last year. Trade-in deals keep the sector turning over but at a slower rate than was the case a couple of years ago and that can only make up a small portion of the total inventory for used smartphones: The result is scarcity.
