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Journalism of Courage
Every year, Indian smartphone manufacturers ship around 145-150 million new smartphones, making the country the second-largest market after China in terms of annual shipping volume. While the smartphone market grew modestly in 2021, phone makers faced numerous challenges in the following years, making the phone replacement cycle increase from a span of 24 months to 36 months.
According to a recent report by the International Data Corporation (IDC), India is seeing an increased demand for used smartphones. One of the main reasons is that only a third of the 650 million mobile users in India have a 5G phone, while the majority of people are still stuck on 4G. “Premiumisation” of India’s smartphone market is another reason why users are looking for second-hand phones, according to IDC.
While Apple recorded growth for new iPhones in the last few years, it also happens to be the biggest company in the used smartphone segment, accounting for almost 25 per cent of the market share. The Cupertino-based tech giant is followed by Xiaomi, a Chinese firm that has recorded growth for the past 20 quarters from Q3 2017 to Q2 2022.
Since it already has a huge user base, the same is reflected in the used smartphone market. Third on the list is Samsung, which also penetrates across various price segments. The report suggests that these three brands account for almost 67 per cent of used smartphones sold in the country.
Apart from peer-to-peer sales, most of the used smartphones sold in India come from startups like Cashift, Budlii, Instacash and Yaantra to name a few. Over the years, these platforms have managed to build confidence and trust amongst consumers when it comes to the quality of used phones in the country, which amounts to another reason why Indians prefer used smartphones.
