Rédaction Africa Links 24 with Guardian Nigeria
Published on 2024-01-31 03:36:30
The International Data Corporation (IDC) has predicted that the global used smartphone market is rapidly growing and is anticipated to reach a value of $110 billion by 2027, with 431 million units sold that year. The IDC highlighted the significance of the sector and emphasized that it would experience even greater growth if there was more inventory of second-hand smartphones available.
The availability of used smartphones is largely dependent on consumer adoption of new, premium models produced by companies such as Apple and Samsung. Economic uncertainty and inflation have also led to consumers holding onto their old smartphones for longer periods of time. The IDC reported that the “used smartphone” market was valued at $64.7 billion in 2023 and is projected to grow to $109.7 billion in 2027. The number of used smartphones shipped in 2023 was 309.4 million, which is expected to increase to 431.1 million units in 2027, resulting in a compound annual growth rate (CAGR) of 8.8% over the five-year period.
The research firm noted that the supply of available used smartphones is influenced by the constantly changing fortunes and strategies of new smartphone manufacturers. Factors such as global geopolitical issues, supply chain disruptions, rising prices, and consumer resistance to upgrading to the latest devices have all impacted the mobile device sector. Consumers are holding onto their old smartphones for longer, resulting in extended refresh rates for new smartphones in developed markets, leading to a shortage of available inventory for the secondary market.
Although demand for used and refurbished smartphones is increasing, IDC indicated that there is currently a shortage of available inventory to meet this demand. This is due to declining sales of new smartphones, consumers tightening their budgets, and geopolitical tensions. With global smartphone shipments expected to have decreased by 3.2% in 2023, sales of used smartphones saw a nearly 10% increase, indicating a growing demand for pre-owned devices. Despite trade-in deals helping to maintain the sector, there is still a scarcity of available inventory for used smartphones.
