Last updated: January 16, 2023, 8:34 AM IST
According to a report, worldwide shipments of used smartphones, including officially refurbished and used smartphones, are expected to reach 282.6 million units in 2022.
The unit growth represents an 11.5 percent increase from the 253.4 million units shipped in 2021, according to the IDC.
This growth is expected to continue as IDC forecasts used smartphone shipments to reach 413.3 million units worth $99.9 billion by 2026 at a compound annual growth rate (CAGR) of 10.3 percent from 2021 to 2026 .
“Attractive price points are critical to growth, as cost savings remain the main benefit. However, a high-end supply battle due to extended refresh cycles in the new market has led to prices rising more than 11 percent in 2022,” said Anthony Scarsella, research manager.
Trade-in programs continue to drive the global market for new and used smartphones.
In addition, trade-in in mature markets such as the US, Canada and Western Europe continues to play an important role in accelerating renewal cycles through telco and retail-driven promotions, the report said.
The increased sales of more expensive devices in the new market has also created a circular effect, as many of these aggressive trade-in deals mainly concern premium devices.
“How long these aggressive trade-in offers last remains a big question for buyers and sellers. Ultimately, small margins will affect the overall profit of the channel, the supplier, or perhaps both,” the report said.
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(This story has not been edited by News18 staff and was published from a syndicated news agency feed)