Market for used smartphones growing fast

Author Moonshot.news

Published on: 07/10/2024

The market for used smartphones is growing faster than for new devices. Demand for wearable devices, dominated by various forms of hearables, is also growing fast. Global sales of gaming PCs is recovering after a tough 2023, reports from market research firm International Data Corporation (IDC) shows.

More than 195 million used smartphones, including officially refurbished and used smartphones, were shipped into the market in 2023, an increase of 6.4% compared to 2022. The value was $72.9 billion, up 12.4% year over year.

“The growth of the secondary smartphone market continues to outperform the new device market as the volume and quality of used and refurbished inventory across the channels improves over time,” says Anthony Scarsella, IDC research director.

The report says that refresh rates continue to get longer in most developed economies causing a shortage of premium models entering the secondary market. 

Apple and Samsung dominate this category, accounting for close to 64% of the global used smartphone market. 

“As the used device market matures and becomes more efficient, other brands and lower-priced models are expected to gain a larger share”, IDC says.

The market for used smartphones is expected to reach 257 million units in 2028 with a five-year compound annual growth rate (CAGR) of 5.7%. Shipment value is forecast to see similar growth with a 5.5% CAGR. In comparison, IDC’s current forecast for the new smartphone market is a 2.8% CAGR over 2023-2028.

 Worldwide wearable device shipments are forecast to grow 6.1% year over year in 2024 to 537.9 million units. 

Hearables, representing over 60% of the wearables market, are expected to be driven by further proliferation among emerging markets and the beginning of a refresh cycle in mature markets as consumers look to replace pandemic-era purchases.

“In the second quarter, hearables continued to face downward pressure on average selling prices, especially within the truly wireless earwear segment,” says research analyst Lujyne Amro. “This decline was driven by increased competition and consumer demand for more affordable options.” 

“However, with new product launches expected later in the year, we anticipate a boost in unit growth as consumers replace older models and upgrade to newer technologies. Looking ahead, we expect the pricing landscape to stabilise as the replacement cycle slows and vendors adjust their strategies to balance affordability with innovation.”

“As smartwatch pricing continues to rise, vendors are going to face the tough challenge of justifying increases,” says Jitesh Ubrani, research manager at IDC. 

“To truly accelerate growth, vendors are going to have to focus on incorporating additional sensors while providing tailored advice to improve an individual’s health – a lot of which will require the use of artificial intelligence, although highlighting the use cases will be more important than highlighting the 

At approximately 10.6 million units shipped, gaming PCs saw a modest year-over-year recovery of 2.4% in the second quarter of 2024. 

“Excluding economic challenges, the lull in gaming PCs has also been driven by a lack of exciting hardware and investments from both consumers and suppliers in adjacent markets such as handhelds,” said Jitesh Ubrani, research manager.

IDC forecasts the gaming market for PCs and monitors will recover in 2024, after contractions in both 2022 and 2023. Gaming volume is expected to hit 69.3 million in 2024, or 9% higher than 2023. Gaming desktops, a key segment for high-end gaming and monitors, is expected to recover in 2025 as new GPUs land in stores. Gaming penetration is also expected to take an increased share going forward, with gaming taking 20% of the total PC and Monitor market by 2028.