Expansion of the Used Smartphone Market in 2023
This year has brought some exciting news for tech enthusiasts: over 195 million used smartphones were shipped worldwide in 2023. This represents a solid growth rate of 6.4% compared to last year. This upward trend underscores the ongoing demand for pre-owned devices, resulting in a market value of approximately $72.9 billion—a notable increase of 12.4% year-over-year.
Gradual Growth Despite Challenges
As the market for secondary smartphones continues to flourish, it’s clear that it’s advancing faster than the slow recovery of new device sales from the pandemic era. Insights from the industry indicate that improvements in the quality and availability of used and refurbished devices are largely contributing to this positive movement. Many new players are jumping into the fray, seeking to establish their presence while sales of brand-new smartphones struggle to reach levels seen before the pandemic.
Market Trends and Inventory Challenges
Even with these encouraging numbers, the growth rate for used smartphone models appears to be slowing down in recent years. One significant obstacle is the limited availability of premium devices in the second-hand market. As device refresh cycles extend in developed nations, individuals are holding onto their phones for longer, leading to fewer high-end models being traded in. Although trade-in programs are flourishing, they only account for a small portion of the overall inventory.
The Prevalence of Premium Brands
Amid this evolving sector, the processing of used devices is heavily focused on high-end brands, especially those needing more detailed refurbishing. According to industry experts like Diogo Santos from IDC, Apple and Samsung collectively hold a remarkable 64% share of the global used smartphone market. As this market continues to mature, there is a possibility for other brands and lower-priced options to increase their market share as operational efficiencies improve.
Looking Ahead for Used Smartphones
On the horizon, the used smartphone market appears promising. Forecasts suggest shipments could reach 257 million units by 2028, which includes a five-year compound annual growth rate (CAGR) of 5.7%. This projection mirrors steady growth in shipment values, expected to rise at a similar CAGR of 5.5%. In stark comparison, the new smartphone market is anticipated to grow at a mere 2.8% CAGR over the same period.
Observing Changes in the Smartphone Market
If you're interested in visual representations of trends, IDC regularly showcases global data related to smartphone shipment growth rates for both new and used devices through informative graphics. Their Worldwide Quarterly Used Device Tracker provides essential insights into unit shipments, average selling prices, and market valuations across various countries and regions.
About International Data Corporation (IDC)
Founded in 1964, the International Data Corporation (IDC) stands as a prominent global source for market intelligence, advisory services, and events focused on information technology, telecommunications, and consumer technology. With a team of over 1,300 analysts worldwide, IDC offers valuable insights to help IT professionals, business leaders, and investors make informed decisions essential for their success. For further details, you can visit their official website.
Frequently Asked Questions
What growth rate did the used smartphone market achieve in 2023?
The used smartphone market saw a growth rate of 6.4% in 2023, totaling over 195 million units shipped.
Who are the dominant players in the used smartphone market?
Apple and Samsung lead the used smartphone market, accounting for approximately 64% of the overall share.
What is the projected growth for the used smartphone market by 2028?
The market is expected to reach 257 million units by 2028, with a CAGR of 5.7% over the next five years.
What challenges does the used smartphone market face?
Key challenges include a lack of premium models entering the market due to longer device refresh cycles and the need for extensive processing of used devices.
How does the used smartphone market compare to new smartphone sales?
The used smartphone market is currently outpacing the new device market, which is gradually recovering but at a slower rate.
