Mint Explainer: Why is refurbished phone demand up while new smartphones dip?
Mint reported that the sale of refurbished smartphones in India is projected to grow to mid- to high-single digits through this calendar year, even as the average price of a second-hand smartphone rose by over 50% this year. This growth comes against a backdrop of declining shipments and consumer demand for new phones. On 3 August, market tracker IDC India said that new smartphone shipments dropped for a fourth straight quarter, and by 10% year-on-year (YoY) in the first half of CY23.
Mint explains why refurbished smartphone sales continue to grow, even though buyers aren’t interested in new phones. To an extent, yes. The covid-19 pandemic necessitated users across the economic demographic to get smartphones, as work and education worldwide shifted to remote operations.
At the top of the price pyramid, premium smartphone users invested in new and expensive devices, while budget smartphone buyers started considering second-hand phones. Now, three years since the first lockdown, many premium phone buyers have started selling their devices to get new ones—which IDC’s 3 August report reflected with a 75% YoY rise in the shipment of premium phones priced above ₹50,000. These premium devices are now percolating through to the second-hand market, giving second-hand phone buyers the option to get premium devices at budget prices.
At the budget end, phone buyers are not rushing to upgrade, since brands have so far failed to offer compelling features at cheap prices. As a result, those who are looking to upgrade are now considering second-hand and refurbished phones, which also offer premium features without the buyers needing to stretch their budgets. On the refurbished electronics marketplace Cashify, a three-year-old Apple
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