The second-hand smartphone market in the country is expected to double in three years to US$4.6 billion (approximately Rs. 34,500 crores) by 2025, according to a joint report by mobile device industry body ICEA and research firm CDI
Consumers traded 25 million smartphones in the second-hand market, generating revenue of over US$2.3 billion (approximately Rs. 17,250 crores), at an average price of US$94 (approximately Rs. 7,050) or Rs. 6,900 per device, according to the report.
“India should be the global hub for remanufacturing and re-trade, taking advantage of its labor cost delta. The deep growth of re-commerce will effectively bridge the digital divide, enabling the migration from regular phones to smartphones.”
“The growth of this market will also ensure a significant drop in e-waste as recycling becomes the new norm,” said President of Cellular and Electronics Association of India (ICEA), Pankaj Mohindroo, during the release of the report.
Over 95% of all used smartphones are sold “as is” and the remaining 5% undergo some sort of repair or refurbishment in India.
“Among consumer electronic devices, smartphones are the largest volume driver (over 90%) in the second-hand market today, and others such as laptops, smartwatches, game consoles and cameras are gradually increasing,” the report said.
The report estimates that 78% of users who buy a used smartphone have a monthly income of less than Rs. 30,000 and 18 percent have a monthly income of Rs. 30,000-Rs 50,000. This makes the affordable price range a key factor in driving demand for second-hand smartphones.
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