Retailers say idle phones that once fetched only a few dozen yuan now commonly sell for more than 100 yuan (US$14.5), with even non-functional devices attracting buyers. In one case, two broken phones sold for a combined 308 yuan. Recyclers report a sharp increase in collection volumes, with some seeing monthly intake rise from around 10 units to 30–40 devices per day, according to Chinese news site City News Service.

The surge is linked to tightening supply in the global memory chip market, as major manufacturers such as Samsung and Micron Technology shift production toward high-bandwidth memory used in AI accelerators. This transition has created shortages of consumer-grade storage chips, pushing memory module prices up by as much as 300% in the past three months.

Demand for such chips is expected to grow 70% year-on-year this year, further driving up prices, Bloomberg reported, citing data from Taipei-based consultancy TrendForce.

A person holds several smartphones. Photo from Unsplash

As a result, used smartphones have become an alternative supply source, with Android devices featuring larger memory capacity particularly sought after. Devices with larger memory capacity command higher prices, with models featuring 256GB or more seeing the strongest demand. The OPPO R9, launched a decade ago, which previously sold for just 20–30 yuan, is now being bought for 150–180 yuan, according to Znews.

Memory chips extracted and refurbished from old devices can deliver performance close to new components while costing 40 to 60% less and avoiding supply delays. These recycled parts are widely used in device repairs and in manufacturing products such as smart door locks and security cameras.