Global secondary smartphone market expanded by 5% YoY in 2022, driven by the growing demand for refurbished smartphones across various geographies, according to a research report by Counterpoint.
The increased trust levels towards refurbished smartphones across markets have been driving this trend. Also, large players within the secondary market ecosystem fared better than small players because the large players got a better supply in a supply-constrained year.
As the Techloy chart below shows, Apple’s iPhones remained the major contributor to the increasing refurbished share due to the brand perception, high margins, and high inventory turnover ratios, growing 16% YoY in 2022, and taking its refurbished market share to over 49%. However, this secondary market demand is affecting new iPhone sales and service revenues in many markets.
Samsung’s share decreased within the secondary market, as there was a small percentage shift of Android consumers to iOS in 2022s, a trend that is likely to continue in 2023.
Per the report, consumers preferred premium and flagship refurbished smartphones compared to previous years, pushing up secondary market ASPs (average selling prices). At the same time, demand for 5G also rose, especially in mature markets like the US, Europe and Japan. In 2022, 5G made up 13% of global refurbished sales.