Apple leads global refurbished smartphone market again in 2022

Global refurbished smartphones saw growth in 2022 despite supply bottlenecks. India became the largest refurbished market in the year due to the effects of the pandemic in China.

According to Counterpoint Research's market tracker, global secondary smartphone sales grew 5% year-on-year in 2022, compared with the 12% drop in new smartphone shipments for the same period. Apple, which saw its refurbished smartphone sales grow by 16%, grabbed 49% of the market in 2022, up from 44% in 2021, followed by Samsung's 26%.

Apple has been leading the global refurbished smartphone market, partly thanks to its policy that offers a full one-year warranty on batteries and outer shell repairs.

Glen Cardoza, a senior analyst at Counterpoint, said that as consumers were holding on to new smartphones for longer, the supply of refurbished smartphones was limited, affecting most emerging markets such as Latin America, Southeast Asia, India, and Africa. However, due to the 17% decline in China's refurbished smartphone sales, India became the largest refurbished smartphone market in 2022.

Meanwhile, Cardoza noted that players in the refurbished smartphone ecosystem across countries were expanding their domestic market, which may reduce China's imports and exports of refurbished smartphones.

Additionally, as 5G-capable smartphones are gaining traction worldwide, 5G refurbished smartphones will increase, leading to declining demand and a higher inventory of 4G refurbished smartphones.

In 2022, Global smartphone sales were hit by rising component prices and inflation rarely seen in decades; hence, cost-minded consumers turned to refurbished smartphones.

Still, refurbished smartphones may be a long-term trend. IDC forecasted in January that thanks to trade-in programs and device premiumization, global used smartphone shipments would reach 413.3 million units in 2026 at a CAGR of 10.3% from 2021 to 2026.

Source: Counterpoint, April 2023

Source: Counterpoint, April 2023