The global refurbished smartphone market grew by 4% in 2020

Due to the Covid pandemic, the market experienced a sharp decline in the first half of 2020.
According to Counterpoint Research, the global market for refurbished smartphones has seen healthy growth in most regions over the second half of 2020 (H2) according to a report.

This helped market recover from the slump of the first half (H1) 2020, with a modest 4 percent increase in 2020 volumes compared to 2019. Counterpoint anticipates a larger increase in 2021.

Covid-19 was responsible for a sharp decline in H1 2020. This led to a sharp decline in the demand for refurbished smartphones in H1 2020.

Glen Cardoza, the Senior Research Analyst, stated that while there was not much supply in the secondary market for smartphones during the first half of 2020, there was an increase in demand and supply in the second half of 2020. Most refurb players experienced a spike in trade-ins and resell volumes when the markets opened.

Cardoza stated that there was an overall YoY increase in volume across all regions for H2 2020. LATAM and Southeast Asia were slow to recover while other markets, such as India and Europe, bounced back and attempted to increase supply-related activities.

Are you hungry for Apple?

Apple occupied a large share of the secondary market.

Jeff Fieldhack, Research Director, stated that there has been no slowdown of Apple's demand in the secondary market. It has actually increased over the last year compared to its competition."
 Apple had a 13.3% share of the global smartphone market. Over 44% of its share was in secondary markets during the same period.

"In addition, Apple’s secondary market ASPs (average sales prices) are nearly three times higher than the average of all its competition. Even though 5G was launched by more than 150 mobile operators in more than 70 countries, demand for Apple's refurbished LTE network remains high. Fieldhack stated that this is helping Apple to grow its installed base because many of the Apple buyers in secondary markets are first-time buyers."

The increase in demand in Europe is due to additional trade-in opportunities and a focus on circular economy initiatives. The demand is being supported by a higher percentage of new businesses, as well as improvements in domestic tech and repair capability.
Cardoza stated, "We expect more secondary markets volumes to move into other areas like Africa, Japan, and India." Existing secondary market companies exist, and new companies are also expanding into these areas. There is also a demand for flagships of premium brands but at mid-tier prices.