The average smartphone replacement cycle in India has increased from 24 months to almost 36 months currently, further restricting the growth of the new smartphone market.
India’s smartphone market grew modestly in 2021, coming out of a challenging 2020 (due to pandemic-led shutdowns). This growth was driven by the need of a better device for remote learning/work and increasing media consumption on the go. However, in 2022 and 2023 the market faced challenges because of the rising average selling price (ASP) for devices (growing by a CAGR of 38per cent from 2020 till 2023), improving device quality, and continuing income stress especially in the mass consumer segment, according to IDC.
The aspiration to own a good device without paying much is making the used smartphones a very attractive choice for consumers wanting to upgrade or even with first-time smartphone users.
Another important factor in the popularity of used smartphones is the rising preference for 5G smartphones. As of now only approximately a third of the 650 million Indian smartphone users have a 5G smartphone, the rest are still using 4G phones. However, the price differential between 4G and 5G smartphones and the lack of wide availability of 5G models under ₹10K (US$125) is restricting their upgrade to a 5G device thus forcing many consumers to go for mid-priced used smartphones.
According to the latest IDC research (IDC Used Device Tracker), India ranks third globally in used smartphone units’ annual volume after China and the US, and is one of the fastest growing markets. In 2024, IDC forecasts 20 million used smartphones will be traded in India with a YoY growth of 9.6per cent, outpacing new smartphone shipments of 154 million units in 2024, growing at 5.5per cent YoY.
Published on October 16, 2024