When old is new: Refurbished premium phones a favourite this festive season

iPhones, Samsung drive demand in recommerce space

It is not just new smartphone launches that will highlight festival-season sales this year; refurbished mobile phones are also seeing a demand surge. Platforms that sell refurbished smartphones, such as Flipkart, Cashify and Grest, are reporting strong demand, particularly for high-end devices like iPhones.

This growth in the refurbished market — also called recommerce market — is driven by a rise in demand for premium smartphones, mainly the Apple iPhone series and Samsung Galaxy S series, as they become more accessible to consumers at significantly lower prices.

Affordability, various financial options, and improved after-sales services from sellers are some of the key drivers of this segment. “Volumes (of refurbished smartphones) are likely to keep increasing as demand increases. A large number of consumers want better devices and are willing to pay for them,” says Glen Cardoza, senior research analyst, Counterpoint.

According to a report by consulting firm Redseer, the refurbished electronics market in India could grow to $11 billion in gross value by March 2026. With the festival season around the corner, companies in this space are expecting a significant surge in sales.

Strong growth

Larger players are also anticipating growth. E-commerce giant Flipkart, for example, recently launched its own business-to-business (B2B) app for refurbished devices called ‘Flipkart Reset for Business’.

“The rise in demand for refurbished devices is driven by several factors. Affordability is a major driver, as refurbished products offer a cost-effective alternative to new devices, appealing particularly to budget-conscious consumers in India’s Tier-II and -III cities. Additionally, the quality assurance provided by Flipkart Reset for Business, including rigorous testing and comprehensive warranties, helps alleviate consumer scepticism about refurbished products,” says Ashutosh Singh Chandel, senior director and business head for recommerce at Flipkart. Currently, Flipkart Reset sells smartphones and accessories and serves over 800 cities across 29 states.

Cashify, one of India’s largest recommerce players, reported a 444 per cent increase in revenue from refurbished smartphone sales in 2023. The company also recorded 25 per cent growth in its buyback business.

The company attributes the surge to promotions, warranty offers, financing schemes, and increased awareness of the advantages of refurbished devices. “We are witnessing a transformative moment in new launches, characterised by artificial intelligence, 5G, the emergence of foldable phones, and a growing focus on sustainability,” says Mandeep Manocha, co-founder and CEO, Cashify.

Manocha adds that advancements in technology are also propelling growth in the refurbishment segment. Improved refurbishment processes ensure high standards of quality, data privacy, and reliability.

Apple in the lead

For Cashify, Apple was the most sold smartphone brand, accounting for more than 50 per cent of sales by volume. Other brands, including Xiaomi, OnePlus, Samsung, and Oppo, lagged behind significantly.

Grest, another recommerce player, reported a two-fold increase in Apple device sales this year compared to last year. With the upcoming festival season, the company expects a three-fold increase in mobile phone sales.

“Grest grew five-fold from FY23 in terms of revenue. There was a huge demand for Apple devices this year, and 67 per cent of our revenue came from Apple sales. As our main focus is on aspirational devices, we have sold about 15,000 refurbished phones (mostly Apple) in the current financial year since April 1, 2024,” says Shrey Sardana, co-founder, Grest.

Tapering volumes

While large recommerce players are seeing impressive growth, analysts note that although volumes will increase, average selling prices (ASPs) in this segment are also rising.

According to data from market research firm Counterpoint, refurbished smartphone volumes grew 19 per cent year-on-year (Y-o-Y) in 2022. Factors like Covid-19 and macroeconomic conditions played a significant role. Growth slowed to 10 per cent Y-o-Y in 2023, down from 19 per cent in 2022. The market is expected to grow by 7-8 per cent in 2024.

Analysts predict that Apple’s market share will continue to rise in 2024, while volumes for Xiaomi and other Chinese brands are expected to decline.

Though volume growth has slowed, the average price of refurbished smartphones has increased. “The India refurbished smartphone market’s growth has slowed, but volumes are likely to keep rising as demand grows. A growing share of consumers wants better devices, and they are willing to pay for them,” says Cardoza of Counterpoint.

Recommerce companies remain bullish about the market’s growth and do not expect any major hurdles. “We do not see any slowdown in the coming years. We expect overall multifold revenue growth over the next five years,” says Grest’s Sardana.

WHEN OLD IS NEW

Apple is the most-selling refurbished smartphone brand for Cashify, with over 50% share by volume. Its volume share has nearly doubled from 29% in 2022
 

This is followed by Xiaomi with a 15% market share, according to Cashify
 

OnePlus is the third most sought-after brand. Its share was 11.7% in 2023, up from 9% in 2022

Consulting firm Redseer pegs the gross value of India's refurbished electronics goods market at $11 billion by March 2026

Grest has sold around 15,000 refurbished phones (mostly Apple) so far this financial year