India’s refurbished smartphone market is seeing strong growth, driven by rising prices of new devices and increased demand for second-hand phones. Counterpoint Research declared there was an increase in the refurbished market of 7-8% in 2025, and analysts are predicting similar growth for this year.
Why Refurbished Phones Are Gaining Popularity
Refurbished smartphones are gaining more and more popularity with the consumers, as the smartphone prices of all brands are going up. The refurbishment process has been improved along with the quality standards that have made refurbished devices to buy through both online and offline channels very easy and also accompanied with an effective warranty.
Market Slowdown After Major Platforms Exited
Several major online platforms have recently gotten rid of their refurbished merchandise offerings due to quality issues and high return rates. This caused a temporary slowdown in sales. However, companies like Cashify and ControlZed strengthened their direct-to-consumer strategies and expanded online and offline retail networks, reviving the market.
Price Hikes Yet to Fully Impact Market
Although new devices’ prices have risen by 15–20%, the full impact of this increase is still unclear. Brands maintain 60–90 days of stock, which delays the effect of price hikes. Nonetheless, industry specialists think that in case there is a further increase in prices, the demand for second-hand phones may shoot up, just like during the COVID-19 time.
Entry-Level Segment to Drive Refurbished Demand
The entry-level smartphone segment (which costs approximately ₹10,000) is projected to be the most affected by the price increase. Profesisonals predict a rise of up to 50% in the next half a year thus the price will almost be ₹15,000. This segment having the largest share in the market will very likely lead to increased sales of refurbished devices due to the price increase.
Possible Supply Shortage of Old Devices
One major issue that could arise is that the users might keep their old phones for a longer time because of the price hike, thus making the supply of used devices in the market even lower. Presently, almost half of the total annual phone sales are fit for the refurbished or exchange markets, but only 50% of this gets to the market actually.Many devices remain unused in drawers or are passed on to friends and family.
iPhones Dominate Refurbished Market
Refurbished Apple iPhones are experiencing a huge demand. Their share in the market has risen from 2% in 2019 to 9% at the present time. According to industry estimates, iPhones are the largest segment, making up roughly 60% of the total sales of refurbished phones.
The high cost of new iPhones is a factor that drives many first-time Apple customers to opt for the purchase of older refurbished iPhones, which are offered at the same or even lower prices as new Androids. Because Apple has no entry-level models, this trend is likely to persist. Even older iPhones (4–5 years old) are in demand, compared to Android phones that lose value faster after 1–2 years.
