The Year 2023: The Rise of Second-Hand Smartphones and the Decline of New Device Sales
In a recent report released by the international data company IDC, it was revealed that global new smartphones experienced a year-on-year growth of -3.2% in 2023, while global second-hand smartphones, including official refurbished and second-hand smartphones, saw a significant increase of 9.5% during the same period. This data paints a clear picture of the current trends in the smartphone market, highlighting a surge in the demand for second-hand devices and a decline in the sales of new smartphones.
According to the report, the global second-hand smartphone market is projected to reach 430 million units in 2027, with a compound growth rate of 8.8% from 2022 to 2027. Additionally, the transaction volume is expected to reach a staggering US$109.7 billion, signaling a substantial shift in consumer preferences towards more affordable and sustainable smartphone options.
The increasing popularity of second-hand smartphones is attributed to a combination of factors. The stagnation of innovation in new smartphone models, coupled with the high cost and low value retention rate of new devices, has led consumers to seek out more cost-effective and durable alternatives. With smartphones becoming more robust and long-lasting, the cycle of device replacement has lengthened, leading to a decline in the demand for new models.
Furthermore, the report indicates that consumers are showing a preference for second-hand devices due to their favorable cost-effectiveness in comparison to new smartphones. The prices of new devices continue to rise, while the value retention rates plummet, making the second-hand market a more attractive option for consumers looking for high-quality smartphones at affordable prices.
The findings of the report serve as a wake-up call for mobile phone manufacturers, urging them to focus on addressing the pain points of consumers and delivering more competitive and innovative products. Additionally, there is an opportunity for manufacturers to tap into the growing second-hand smartphone market by offering preferential trade-in policies and additional services, ultimately boosting user loyalty and attracting continued purchases of new products.
As the smartphone market continues to evolve, it is clear that the rise of second-hand smartphones and the decline of new device sales will have a significant impact on the industry, prompting manufacturers to adapt to changing consumer preferences and market dynamics in order to stay competitive.