Why Are Refurbished Smartphone Prices Rising?

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Why Are Refurbished Smartphone Prices Rising?

Sep 13, 2024

The global refurbished smartphone market continues to go high-end, with its average selling prices (ASPs) now more than that for new phones.
Emerging markets are the biggest growth driver with consumers there hungry for high-end flagships.
The emergence of more structured markets and supply constraints are also pushing up prices in big markets like China, Southeast Asia and Africa.
2024 will be the first year to see refurb ASPs in these markets rise to more than that for the global ASP for new phones.
iPhone is the hottest currency in refurb markets right now and will dictate refurb ASPs in the long term.

Refurbished smartphones’ average selling prices (ASPs) continue to rise globally and are now close to that for high-end phones in many developed markets. According to Counterpoint Research’s latest Global Secondary Smartphone Market Report, prices of refurbished smartphones grew 6% in 2023 to more than one-quarter higher than the ASP for new smartphones. Emerging markets make up the majority of global demand, with their ASP growing nearly 3X that of developed markets. 2024 will be the first year when refurb prices in emerging markets will exceed the global average for new phones, highlighting how premium the product mix can be for used or refurbished phones. Key reasons for the steeper increase in emerging markets include a growing appetite for flagships among consumers and enterprises alike, a maturing and more consolidated market structure, and constrained global supply. iPhone is the most popular refurbished device across both developed and emerging markets, and the main reason why ASPs are so high. Hence, iPhone supply will continue to dictate the bulk of pricing as we expect the secondary market share of iPhones to continue ticking upwards. For our full 4-page research note, please log in to the Research Portal. If you are not a client, reach out to us at [email protected]

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Team Counterpoint

Counterpoint research is a young and fast growing research firm covering analysis of the tech industry. Coverage areas are connected devices, digital consumer goods, software & applications and other adjacent topics. We provide syndicated research reports as well as tailored. Our seminars and workshops for companies and institutions are popular and available on demand. Consulting and customized work on the above topics is provided for high precision projects.