Demand for used smartphones is surging in India due to the rising cost of new phones and the need for affordable upgrades. According to IDC’s latest report, India’s used smartphone market is expected to grow by 9.6% in 2024, with an estimated 20 million used devices being traded. This growth rate is faster than new smartphone shipments, which are expected to grow by 5.5% next year.
India currently ships around 145-150 million new smartphones annually, making it the world’s second-largest market after China.
However, the growth of the new smartphone market has been slow since 2021 due to rising average selling prices, improving device quality, and continued income stress for consumers. The average replacement cycle has increased from two years to nearly three years, making new devices less affordable for many buyers.
With the average selling price of new smartphones steadily rising, used smartphones are becoming an attractive option for consumers looking for a high-quality device without a hefty price tag.
This trend is especially strong among users who want to upgrade to a 5G smartphone but feel that new models are too expensive. According to IDC data, about two-thirds of India’s 650 million smartphone users are still using 4G devices. Limited availability of 5G phones priced below 10,000 rupees ($125) is limiting wide adoption in the mass market segment.
Brands like Apple and Xiaomi dominate the used smartphone market in India.
Brands leading the used smartphone market
Apple leads the market with a quarter share of the used segment, driven by the brand’s premium status and demand for older models such as the iPhone 11, 12 and 13 series. Xiaomi, which has led the new smartphone market for 20 consecutive quarters through 2022, maintains its second position, followed by Samsung.
Several startups are also trying to organize the previously fragmented used smartphone market. Platforms like Cashify, Yaantra, etc. have introduced quality checks, guarantees, and omnichannel presence to increase consumer trust. For example, Cashify has over 200 stores across 100 cities, while Flipkart-owned Yaantra focuses primarily on online sales and some offline partnerships.
Looking ahead, IDC predicts that India’s used smartphone market will grow at a compound annual growth rate (CAGR) of 8% over the next five years, reaching 26.5 million units by 2028.
