The expectation that the circular economy for technology products will see exponential growth over the coming year has been underlined by a prediction from IDC which estimates that worldwide shipments of used smartphones – including officially refurbished and used devices – will reach 431.1 million units in 2027 and be worth $109.7 billion.
► Extended refresh cycles creating shortfall of secondary product availability
► Trade-in schemes can be used to help in persuading customers to upgrade
Shipments of used devices in 2023 were estimated at 309.4 million units – up 9.5% on 2022. The compound annual growth rate (CAGR) between 2022 and 2027 will be of 8.8%, said the firm.
While longer refresh cycles, high price points, and macroeconomic challenges have all negatively impacted the new smartphone market, said IDC, demand for used devices remains healthy. It estimates that new smartphone shipments declined 3.5% last year in 2023. In contrast, the used market saw nearly 10% growth. But with refresh rates for new phones in most developed markets now extended past 40 months, there has been a shortage of available inventory for the secondary market, illustrating a real need for increased use of trade-in schemes.
