India's used smartphone market booms amid rising device prices; Apple, Xiaomi in lead

The demand for used smartphones is surging in India, driven by increasing new phone costs and the need for affordable upgrades. According to the latest report by IDC, India's used smartphone market is expected to grow by 9.6 per cent in 2024, with an estimated 20 million used devices traded. This growth rate outpaces new smartphone shipments, which are forecasted to grow at 5.5 per cent next year.

India currently ships around 145-150 million new smartphones annually, making it the second-largest market globally after China.

However, growth in the new smartphone market has been modest since 2021 due to rising average selling prices, improving device quality, and ongoing income stress among consumers. The average replacement cycle has stretched from two years to almost three, making new devices less accessible for many buyers.

With the average selling price of new smartphones climbing steadily, used phones are becoming an attractive alternative for consumers seeking quality devices without the hefty price tag.

This trend is particularly strong among those aspiring to upgrade to a 5G smartphone but finding new models too expensive. IDC data shows that about two-thirds of India’s 650 million smartphone users are still on 4G devices. The limited availability of 5G phones under Rs 10,000 ($125) is restricting wider adoption in the mass market segment.

Brands like Apple and Xiaomi are dominating the used smartphone space in India.

Leading brands in used smartphone market

Apple leads the market with a quarter share of the used segment, fueled by the brand's premium status and demand for older models like the iPhone 11, 12, and 13 series. Xiaomi, which led the new smartphone market for 20 straight quarters until 2022, holds the second position, followed by Samsung.

Several startups are also organizing the previously fragmented used smartphone market. Platforms like Cashify, Yaantra, and others have introduced quality checks, warranties, and omnichannel presence to boost consumer confidence. Cashify, for instance, has over 200 stores across 100 cities, while Yaantra, owned by Flipkart, focuses mainly on online sales and select offline partnerships.

Looking ahead, IDC forecasts the used smartphone market in India to grow at a compound annual growth rate (CAGR) of 8 per cent over the next five years, reaching 26.5 million units by 2028.