India has long been known for its massive smartphone market, shipping between 145 to 150 million new devices annually.
This impressive volume places the country second only to China in terms of the sheer number of phones being shipped. However, while the market has seen some growth, particularly in 2021, recent years have been more challenging for manufacturers.
As a result, Indian consumers are now holding onto their smartphones for longer, with the average replacement cycle stretching from 24 to 36 months.
Rising demand for used smartphonesInterestingly, a recent report by the International Data Corporation (IDC) highlights a new trend: an increased appetite for used smartphones across the country. There are a few key factors driving this demand.
One is that, despite India’s rapidly growing smartphone market, only about a third of the country’s 650 million mobile users currently have a 5G-capable device.
The majority are still using 4G phones, so many are turning to second-hand options to upgrade without breaking the bank.
Another driving force behind this shift is the “premiumisation” of the market. As new flagship models from major brands become more expensive, many consumers are looking for more affordable alternatives in the form of used phones, allowing them to enjoy premium features at a fraction of the cost.
Apple leads the used phone marketWhile Apple has seen steady growth in sales of its new iPhones over recent years, the company is also dominating India’s used smartphone market. According to the IDC report, Apple holds nearly 25 per cent of the market share for second-hand devices, making it the top player in this segment.
The appeal of owning an iPhone, even a pre-loved one, remains strong among Indian consumers, thanks to the brand’s reputation for quality and longevity.
Close behind Apple is Xiaomi, a Chinese smartphone manufacturer that has experienced consistent growth over the last 20 quarters. Xiaomi’s popularity is reflected not only in new device sales but also in the second-hand market, where it has a strong presence.
In third place is Samsung, which continues to appeal to a broad range of price points, making it a favourite for both new and used smartphones.
Together, these three brands — Apple, Xiaomi, and Samsung — account for nearly 67 per cent of all used smartphone sales in India, showcasing their dominance in the market.
Startups fueling the second-hand phone boomBeyond peer-to-peer sales, a significant portion of used smartphones sold in India comes from specialised platforms such as Cashify, Budlii, Instacash, and Yaantra.
These startups have been instrumental in building trust among consumers when it comes to purchasing pre-loved phones, offering quality assurance and warranties that give buyers peace of mind.
As these platforms continue to grow, they’re making it easier for consumers to opt for used smartphones, further boosting demand in the country.
With the affordability and accessibility of second-hand smartphones, India’s love for pre-loved devices is only set to grow.
As consumers look for ways to upgrade without splurging on the latest flagship models, the used phone market is thriving, making brands like Apple even more popular among bargain hunters across the nation.
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India loves ‘pre-loved’ smartphones, sees spike in demand for used phones, Apple most popular brand
