Photo Credit: Unsplash/ Luis Vilasmil
The second-hand smartphone market in the country is expected to double in three years to $4.6 billion (roughly Rs. 34,500 crores) by 2025, according to a joint report by mobile devices industry body ICEA and research firm IDC.
Consumers traded 25 million smartphones in the second-hand market generating a revenue of over $2.3 billion (roughly Rs. 17,250 crores), at an average price of $94 (roughly Rs. 7,050) or Rs. 6,900 per device, according to the report.
“India should be the global hub of re-manufacturing and re-commerce by leveraging its delta of labour cost. Re-commerce's profound growth will effectively reduce the digital divide by enabling migration from feature phones to smartphones.”
"The growth of this market will also ensure that there will be a significant drop in e-waste as recycling will become the new norm," India Cellular and Electronics Association (ICEA) Chairman Pankaj Mohindroo said during the launch of the report.
More than 95 percent of all second-hand smartphones are sold "as it is" and the remaining five percent go through some kind of repair or refurbishment in India.
"Among the consumer electronics devices, smartphones are the largest volume driver (over 90 percent) in the second-hand market currently, and others such as laptops, smartwatches, gaming consoles, and cameras are picking up gradually," the report said.
The report estimates that 78 percent of the users buying a second-hand 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. It makes the affordable price range a key factor in driving the demand for second-hand smartphones.