IDC has projected that worldwide shipments of used smartphones, encompassing both officially refurbished and pre-owned units, are on the rise. The estimate for 2023 stands at 309.4 million units, marking a 9.5% increase from the 282.6 million units shipped in 2022. The forecast for 2027 says smartphone shipments could soar to 431.1 million units, a compound annual growth rate (CAGR) of 8.8% from 2022 to 2027.
| Region | 2023 Revenue | 2023 Revenue Share | 2027 Revenue | 2027 Revenue Share | 2022-2027 CAGR |
|---|---|---|---|---|---|
| North America | $26,653 | 41.2% | $44,339 | 40.4% | 10.7% |
| Rest of World | 227.6 | 58.8% | 65,327 | 59.6% | 11.4% |
| Total | $64,695 | 100.0% | $109,666 | 100.0% | 11.1% |
There are critical challenge in the supply of used smartphones, stemming from extended refresh cycles, high pricing, and various macroeconomic difficulties. These factors have also negatively impacted the new smartphone market. Despite these challenges, the demand for used smartphones remains strong and shows growth potential, although at a slightly slower rate than previously anticipated. While new smartphone shipments are expected to decline by 3.5% in 2023, the used market is displaying remarkable resilience.
One of the major hurdles in the used smartphone market is the challenge of securing inventory. As consumers in mature markets increasingly hold onto their devices for longer durations, the higher-end segment of the market faces scarcity. This trend is impacting not only the availability of used devices but is also evident in the new smartphone market, which has seen a 3.5% decrease in shipments for 2023. Retailers in the secondary phone market are struggling to find inventory, particularly for high-end devices.
| Region | 2023 Shipments | 2023 Market Share | 2027 Shipments | 2027 Market Share | 2022-2027 CAGR |
|---|---|---|---|---|---|
| North America | 81.8 | 26.4% | 107.1 | 24.8% | 7.8% |
| Rest of World | 227.6 | 73.6% | 324.0 | 75.2% | 9.2% |
| Total | 309.4 | 100.0% | 431.1 | 100.0% | 8.8% |
Maybe this is a good enough reason for Samsung is suing BOE for infringing on its display IP for aftermarket sales of smartphone screens.
