- Refurbished smartphone sales in India rose to 26% of total sales from January to May, up from 23% last year
- India's second-hand smartphone market is forecast to grow 12% by 2026 while new phone sales may decline 11%
- Premium refurbished phones, especially iPhones, are in strong demand
Buying a new smartphone is getting harder on the pocket. Therefore, many middle-class Indians are switching to refurbished one instead.
The shift is already showing up in the numbers.
India's second-hand smartphone market is expected to grow by around 12 per cent in 2026 while the market for new handsets is projected to decline by 11 per cent, according to Counterpoint Research data. Refurbished and pre-owned phones accounted for 26 per cent of total smartphone unit sales between January and May, up from about 23 per cent a year earlier.
Memory chips, a critical component in smartphones, have seen prices surge two to three times amid strong demand from AI data centres. Industry executives estimate that handset prices have risen by up to 70 per cent since November, with the average increase at around 30-35 per cent.
For a middle-class buyer already stretching the budget to get a good phone, that jump hurts. And that is where refurbished phones are finding a bigger audience.
Indians Are Not Giving Up On Premium Phones
The interesting part is that buyers are not necessarily moving to basic or entry-level devices. They still want the phone they had their eyes on. They are simply looking for a cheaper route to get it.
Shrey Sardana, Co-Founder & CEO of Grest, said rising prices of new smartphones, driven by supply-chain constraints and higher component costs, have accelerated this shift.
"Instead of compromising on the device they aspire to own, consumers are increasingly choosing certified refurbished devices that offer the same premium experience with the assurance of quality checks, transparent grading, standard pricing and warranty," Sardana said.
That trend is particularly visible in the premium segment. According to Sardana, iPhones are the fastest-moving category at Grest, with strong demand for the iPhone 15 and iPhone 16. Both are priced above Rs 40,000.
Customers on the platform range from those spending Rs 15,000 to buyers willing to spend more than Rs 1 lakh.
That tells an important story. Refurbished phones are no longer simply a product for consumers who cannot afford a new device. They are increasingly becoming a way to get a premium device without paying the full new-phone price.
The Premium Refurbished Market Is Growing
Sardana said the ultra-premium segment, covering devices priced above Rs 45,000, is growing at nearly 40 per cent year-on-year. The broader premium segment is growing at around 11 per cent, even though overall smartphone shipments remain nearly flat.
There is another factor helping refurbished phones: financing. Around 40-50 per cent of iPhones in India are bought through EMI or some form of financing, according to Sardana.
The aspiration, therefore, is already there. The problem is affordability.
A certified refurbished phone can bridge that gap. Consumers can get a premium model at a fraction of its new-device price, and financing can bring the monthly cost down further.
Refurbished iPhones, MacBooks And iPads Gain Ground
The shift is also spreading beyond smartphones. Premium iPads and MacBooks are emerging as high-growth categories. Students, creators and young professionals are increasingly looking to enter the Apple ecosystem without paying new-device prices.
Refurbished electronics were once seen largely as a compromise. Now, certified devices with quality checks, grading and warranties are trying to change that perception. The organised market is still small, however.
FDM CCS Insight said India's organised secondary smartphone market is only around 4 per cent of the size of the primary smartphone market. At the same time, about 85 per cent of the second-hand smartphone market remains with unorganised players such as peer-to-peer sellers and small shops.
That leaves plenty of room for organised players to grow.
Chip Shortage Could Give Refurbished Phones Another Push
The pressure on new-phone prices may not disappear quickly.
FDM CCS Insight said the ongoing struggle for memory-component supply has pushed up smartphone bill-of-materials costs and put upward pressure on prices. It expects smartphone prices may not return to pre-2025 levels.
The impact is already visible in the affordable segment. In the first quarter of 2026, prices of smartphones below $200 rose by more than 30 per cent, according to FDM CCS Insight. That segment accounts for about half of smartphone sales in India.
This could make the refurbished market even more attractive. The broader global market is also expanding rapidly. Sardana said the global refurbished electronics market grew from $60.3 billion in 2018 to $110.6 billion in 2024. It is expected to reach roughly $247 billion by 2029.
India could be one of the biggest opportunities. Sardana estimates that the country's refurbished premium smartphone market is currently worth around $2.2 billion and could reach nearly $7.8 billion by FY30, implying a compound annual growth rate of about 29 per cent.
