By Temitayo Jaiyeola
The used smartphone market grew by 9.5 per cent in 2023, the International Data Corporation has disclosed.
Worldwide shipments of used smartphones, including officially refurbished ones, will reach 309.4 million units in 2023, according to IDC. This is a 9.5 per cent increase over the 282.6 million units shipped in 2022.
The data insight firm also projects that used smartphone shipments will reach 431.1 million units in 2027, with a compound annual growth rate of 8.8 per cent from 2022 to 2027.
It stated that the supply of used smartphones remained a critical challenge as refresh cycles, high price points, and macroeconomic challenges had negatively impacted the new smartphone market, affecting the quantity of phones that can end up as used.
The firm said, “However, demand for used smartphones remains healthy and will continue to grow throughout the forecast period, just at a slower rate than previously forecast, thanks to the challenge of acquiring inventory.
“IDC forecast new smartphone shipments to decline 3.5 per cent in 2023 as demand, inflation, and political unrest continue to impact the global economy. In contrast, the used market demonstrated fierce resilience to overcome these unforeseen circumstances by displaying nearly 10 per cent growth for the year.”
It noted that the used smartphone market continued to grow at an impressive pace when compared to the new smartphone market, which continued to struggle.
Research manager with IDC’s Worldwide Quarterly Mobile Phone Tracker, Anthony Scarsella, stated, “Despite the near 10 per cent growth, the secondary market is showing signs of slowdown due to a genuine lack of inventory.
“With refresh rates extending in most mature markets, acquiring inventory remains the biggest challenge for resellers. Secondary phone retailers are hungry for inventory as the high end of the market continues to be scarce due to customers just holding on to their devices. This lengthening can also be witnessed in the new market where shipments declined 3.5 per cent for 2023.”
Nigeria has a large secondhand smartphone market. In 2021, the number of Nigerians who bought secondhand iPhones and Samsung rose by 10 per cent, according to a report by Counterpoint Technology Market Research.
