Daijiworld Media Network – New Delhi

New Delhi, Aug 7: With new smartphones becoming increasingly expensive, a growing number of Indian consumers, especially from middle-class households, are turning towards refurbished and pre-owned devices to fulfil their technology needs.

The trend is reflected in market data, with India’s second-hand smartphone market expected to grow by around 12 per cent in 2026, while sales of new handsets are projected to decline by nearly 11 per cent, according to Counterpoint Research estimates.

Refurbished and pre-owned smartphones accounted for 26 per cent of total smartphone sales between January and May, compared to around 23 per cent during the same period last year.

Industry experts attribute the shift to rising component costs, particularly memory chips, whose prices have surged due to increasing demand from artificial intelligence data centres.

Smartphone prices have reportedly increased by up to 70 per cent since November, with the average rise estimated at 30-35 per cent.

For budget-conscious buyers, refurbished phones are emerging as an attractive alternative, allowing them to purchase premium devices at lower prices.

Experts say buyers are not necessarily moving towards cheaper entry-level smartphones but are instead looking for affordable ways to own premium models.

Shrey Sardana, Co-Founder and CEO of Grest, said increasing prices of new smartphones due to supply-chain issues and higher component costs have accelerated the demand for certified refurbished devices.

He said consumers are opting for refurbished phones that offer premium features along with quality checks, transparent grading, standard pricing and warranties.

The premium segment has witnessed significant growth, with Apple iPhones among the fastest-selling refurbished devices. Models such as the iPhone 15 and iPhone 16, priced above Rs 40,000, have seen strong demand.

The ultra-premium refurbished segment, covering devices priced above Rs 45,000, is reportedly growing at nearly 40 per cent annually, while the broader premium category is growing around 11 per cent despite overall smartphone shipments remaining largely stable.

Financing options are also contributing to the trend. Experts estimate that around 40-50 per cent of iPhones in India are purchased through EMI or other financing methods, indicating strong demand for premium devices despite affordability challenges.

Refurbished phones provide consumers an opportunity to access high-end models at reduced prices while lowering the monthly financial burden.

The trend is extending beyond smartphones, with refurbished iPads and MacBooks gaining popularity among students, content creators and young professionals seeking entry into the Apple ecosystem.

Earlier viewed as a compromise, refurbished electronics are now gaining acceptance due to quality certification, inspection processes and warranty support.

However, the organised refurbished market remains relatively small. Industry estimates suggest that organised players account for only around 4 per cent of India’s secondary smartphone market, while nearly 85 per cent of used smartphone transactions still take place through unorganised sellers, including local shops and peer-to-peer platforms.

The pressure on smartphone prices is expected to continue due to shortages in memory components. Industry analysts believe smartphone prices may not return to pre-2025 levels soon.

The impact is already visible in the affordable smartphone segment, where prices of devices below $200 increased by more than 30 per cent in the first quarter of 2026.

As new devices become costlier, the refurbished market is expected to gain further momentum. India’s refurbished premium smartphone market, currently estimated at around $2.2 billion, could grow to nearly $7.8 billion by FY30, according to industry projections.