Counterpoint Research: Global refurbished smartphone sales will increase by 5% year-on-year in 2024. Apple Inc. (AAPL.US) market share will rise to 56%.

According to the "Second-hand Smartphone Market Report" released by Counterpoint Research, the sales of refurbished smartphones globally increased by 5% in 2024 compared to the previous year. In contrast, the new smartphone market rebounded after a difficult 2023, with a 3% year-on-year growth. However, after experiencing growth for two to three consecutive years in various regions, the refurbished smartphone market in 2024 has matured, and even stagnated in some areas. In 2024, Apple almost single-handedly drove the growth of the second-hand smartphone market. It was one of the few smartphone brands to achieve a sales growth in 2024, increasing its market share from 51% in 2023 to 56%. More and more consumers are turning to the second-hand market to buy iPhones at more affordable prices. Glen Cardoza, Senior Research Analyst at Counterpoint Research, said, "Apple's growth this time was mainly contributed by the iPhone 11 and iPhone 12 series. Despite the launch of the iPhone 13 and iPhone 14 series for some time, many consumers still choose to hold on to these devices longer, leading to supply shortages. The shortage of new iPhones has seriously affected the ASP of the global second-hand smartphone market, with a year-on-year decrease of 11% in 2024, dropping from $445 in 2023 to $394. In contrast, while Samsung's overall market share has declined in the global market, the ASP has increased due to the increased demand for the Galaxy S flagship series." The sales of "as-is" smartphones (i.e., only cleaned and repackaged, without technical repairs) increased by 13% year-on-year in 2024. Cardoza pointed out, "Devices are more durable now, making the quality of used phones better, reducing the demand for refurbished phones. In addition, the cost of components, labor, and equipment is constantly rising, meaning many businesses only sell second-hand smartphones 'as-is' to maintain profit margins." Meanwhile, 5G smartphones have seen significant growth among all brands, with their share in the global refurbished smartphone market increasing from 28% in 2023 to 42% in 2024. This share could have been even higher if there had not been a shortage of new iPhone supply during the second to fourth quarters of 2024. Regarding the outlook for the second-hand market, Jan Stryjak, Deputy Director of Counterpoint Research, said, "Due to supply constraints, the growth of the second-hand market in 2024 has stabilized. However, we expect that as devices purchased during the peak consumption period after the pandemic from 2020 to 2022 enter the replacement cycle, the market will experience a recovery in 2025. In the future, the second-hand business will focus more on strategic inventory management, which may drive transaction growth in emerging markets."