Display supply shifts to refurbished market as smartphone demand weakens

Omdia says display shipments to the refurbishment market have overtaken those to smartphone makers for the first time as rising memory costs weaken new-device production

For years, the refurbished electronics market has largely been shaped by consumer demand for affordable alternatives. But the balance is beginning to change. As rising memory prices force smartphone makers to cut production, the supply chain itself is increasingly turning towards refurbishment.

 

That shift became visible this week when market research firm Omdia reported that display panel shipments to the refurbished smartphone market exceeded those to smartphone manufacturers for the first time in Q1, CY2026.

 

According to the report, display shipments for refurbishment rose 20 per cent year-on-year to 298 million units in the first quarter of calendar year 2026, overtaking the 289 million panels shipped to smartphone makers during the same period.

The numbers point to more than growing consumer demand for refurbished phones. They suggest refurbishment is increasingly becoming an important outlet for the electronics supply chain, allowing component makers to absorb excess production as demand for new devices weakens.

Refurbishment becomes part of smartphone supply chain

Omdia attributed the shift to smartphone makers scaling back production plans in response to costlier memory, a pullback the research firm expects to reduce demand for new-smartphone displays by 12 per cent this year. Omdia's latest forecast similarly projects smartphone panel shipments for new devices to decline 12 per cent in 2026.

 

Panel makers cannot adjust as easily because building and operating display fabrication plants involves years of capital commitment that cannot be unwound as soon as demand softens.

 

The more practical option, Omdia found, is to direct surplus panels towards the refurbishment ecosystem, which includes repair shops, professional refurbishers and aftermarket parts suppliers.

 

"For panel makers, the refurbishment market acts like a reservoir that helps absorb fluctuations in demand from smartphone manufacturers," Omdia analyst Joy Guo said in the report.

 

She added that higher memory prices had significantly reduced demand for both liquid crystal display (LCD) and organic light-emitting diode (OLED) panels from smartphone manufacturers, prompting suppliers to redirect more displays towards the refurbishment market.

 

In other words, refurbishment is no longer benefiting only from more consumers buying used devices. It is increasingly becoming part of how suppliers manage production when demand for new smartphones slows.

Rising component costs affect refurbishers differently

Higher component prices are also affecting the refurbishment industry, but not in the same way as manufacturers of new devices.

 

Mandeep Manocha, co-founder and chief executive officer of Cashify, had earlier told Business Standard that costlier displays, batteries and camera modules increase refurbishment costs.

 

However, he argued that refurbishers bear less of that burden overall because their business is built around extending the life of devices already in circulation rather than manufacturing new ones from scratch.

 

That distinction becomes important in light of Omdia's findings.

 

While replacement components may become more expensive, a greater supply of display panels entering the refurbishment ecosystem could ease availability constraints for organised refurbishers.

Instead of competing only for scarce replacement parts, certified refurbishers could gain access to a larger supply of displays as manufacturers reduce production of new smartphones.

 

The report also indicates that the quality of replacement components entering the market is improving.

 

OLED panels accounted for 7 per cent of display shipments into the refurbished channel in the first quarter of 2026, more than three times their 2 per cent share a year earlier.

 

That is particularly relevant for premium smartphones, where display replacement has traditionally been among the most expensive repairs.

Premium refurbished phones could become more accessible

Greater availability of OLED replacement panels could make it easier to refurbish newer flagship devices, expanding the range of premium smartphones available through organised sellers.

 

Manocha has previously pointed out that this is already one of the category's main selling points: buyers can often purchase a previous-generation flagship for roughly the price of a new mid-range smartphone.

 

ControlZ had also told Business Standard that while rising component costs increase prices across the market, refurbished devices become comparatively more attractive because the absolute savings against new products grow as manufacturers pass higher costs on to consumers.

 

That dynamic could become more pronounced if premium replacement components become easier to source.

 

The shift is also visible among smartphone manufacturers themselves. Samsung launched its Certified Re-Newed programme in India in May, offering refurbished flagship and mid-range Galaxy smartphones restored with genuine parts and backed by a one-year warranty.

 

Google also operates an authorised refurbished Pixel programme in India through Cashify, covering previous-generation Pixel devices.

Consumer demand is shifting alongside supply

The supply-side changes mirror shifts already visible among consumers.

 

Earlier this year, a joint study by Trakin Tech and Techarc found that 54 per cent of intended festive-season smartphone demand could be disrupted if prices rose beyond expectations.

 

Some buyers indicated that they would postpone purchases, while others planned to shift towards refurbished devices.

 

Techarc founder and chief analyst Faisal Kawoosa has attributed the trend to sustained memory price inflation and pointed to a segment of consumers who had planned to buy new smartphones during the festive season but were considering refurbished alternatives instead.

 

The movement towards refurbished devices is also reflected in manufacturers' strategies.

 

Besides Samsung's Certified Re-Newed programme and Google's partnership with Cashify, PC makers HP, Dell and Lenovo have introduced similar initiatives for computers.

Longer ownership increases demand for repairs

Earlier, Navkendar Singh, associate vice-president at International Data Corporation India, told Business Standard that smartphone replacement cycles were lengthening, with consumers holding on to their devices for longer.

 

Longer ownership changes the economics of repairs.

 

A smartphone kept in use for four or five years is more likely to require a replacement display or battery than one replaced after two or three years. This keeps demand for spare parts elevated even as shipments of new smartphones decline.

 

Omdia's latest data suggests suppliers are already responding to this shift.

 

Displays shipped into the refurbishment ecosystem are not limited to organised refurbishers. They also serve consumer repairs and aftermarket replacement channels.

 

As more consumers choose to extend the life of existing devices rather than upgrade, demand for replacement components is likely to remain strong.

 

What began as a consumer-led market for cheaper used electronics is therefore increasingly becoming part of the industry's supply-chain strategy as well.