The market for refurbished smartphones in India is about to enter a new phase of growth as consumers turn to certified pre-owned options due to the escalating cost of new handsets.
Refurbished Smartphone Market Enters New Growth Phase
Due to significant price increases, enhanced quality standards, and the quick growth of direct-to-consumer online and offline channels, industry experts anticipate an increase in demand.
According to projections from industry experts and Counterpoint Research, the secondary smartphone market is predicted to have increased by 7–8% in 2025, and momentum is expected to pick up even further in 2026.
Shift in Market Structure and Platform Strategy
After Amazon and Flipkart stopped selling refurbished smartphones on a big scale in 2025 because to high return rates and uneven quality of externally refurbished devices, the market saw a significant structural change. For vendors who relied on these sites, the change resulted in a brief decline in sales.
As a result, businesses like Cashify and Control Z have intensified their direct-to-consumer tactics, growing their offline retail networks and proprietary web platforms.
📱 Rising Smartphone Prices Boost Refurbished Demand
- Key Driver: Escalating prices of new smartphones
- Cost Pressure: Rising chip and memory prices
- Impact: Consumers shifting to certified refurbished devices
- Market Effect: Strong demand outlook for 2026
- Consumer Benefit: Better value with quality assurance
Price Arbitrage and Inventory Impact
Executives anticipate that increased costs for new cellphones will serve as a major incentive for reconditioned models. Yug Bhatia, co-founder of Control Z, told Moneycontrol that “the pricing arbitrage will become too great to ignore.”
According to Bhatia, most brands are still sitting on 60–90 days of inventory, thus the full effects of price increases have not yet materialized. However, a 15–20% increase in the cost of new devices might lead to a dramatic spike in the demand for refurbished cellphones. This would be comparable to the turning point during the Covid-19 pandemic, when supply-chain interruptions increased prices and hastened consumer acceptance of refurbished handsets.
Rising Component Costs and Entry-Level Impact
According to Nakul Kumar, co-founder of Cashify, “prices for new devices are going up dramatically, mostly due to rising memory and chip costs.”
“The effects will begin to show up next month, although they have not fully materialized yet. Prices for computers and smartphones would increase significantly based on our conversations with OEMs, Kumar told Moneycontrol.
Entry-level cellphones, which make up the majority of the market, are anticipated to be most affected. According to executives, the price of a phone, which is currently at Rs 10,000, might climb by 50% over the next six months to Rs 15,000.
Supply Constraints and Consumer Behavior
“This price shock could be substantial because entry-level phones make up the largest category,” Kumar stated. “We hope that this increases demand for reconditioned equipment.”
Higher costs for new phones, however, may also encourage consumers to keep their phones longer, which would reduce supply. “That is the drawback,” Kumar remarked. On the plus side, though, refurbished goods are always a more sensible option due to their higher pricing.
⚙️ Organized vs Unorganized Refurbished Market
- Challenge: Large unorganized grey market presence
- Opportunity: Shift demand to quality-assured players
- Gap Areas: Distribution, awareness, quality control
- Retail Role: Exchange programs and store trade-ins
- Growth Lever: Stronger organized supply chains
Trade-In Potential and E-Waste Awareness
The largest unresolved issue, according to executives, is how much of the market can be brought into the organized ecosystem, despite better demand fundamentals. According to Bhatia, “the unorganized market has always risen and never truly slowed down.” “How much of that demand can transfer to organized, quality-assured players is the real question.”
Roughly half of all cellphones sold each year qualify for the reconditioned or trade-in market, according to Cashify estimates. For instance, of the 130 million cellphones sold annually, almost 65 million are part of the refurbished ecosystem.
Only roughly half of these are truly traded in, according to Kumar. The remainder are either given to friends and family or left unused in drawers. Lack of knowledge about e-waste and the benefits of selling outdated electronics rather than keeping them is the main problem.
iPhone Dominance in Refurbished Segment
Consumer demand for iPhones is a recurring trend in the market as a whole. Industry estimates show that Apple’s iPhone market share in India has increased from about 2% in 2019 to almost 9% at present.
Refurbished iPhones are becoming more widely available online, which has increased the category’s financial significance.
“We always prioritized the iPhone,” stated Bhatia. “The majority of other players prioritized Android, but in 2025, iPhones became the primary business for nearly everyone.” According to industry estimates, up to 60% of all reconditioned player sales currently come from iPhones.
Android Strategy and Device Lifecycle
According to Kumar, “iPhones continue to be the most desirable brand in India.” “Since Apple does not truly have an entry-level model, refurbished iPhones are the easiest entrance point for first-time Apple customers due to their high entry price for new devices—a trend that is expected to continue.”
Executives stated that although businesses are branching out into Android handsets, the emphasis is still on more recent versions. “We work on T-minus one or T-minus two smartphones with Android,” Bhatia stated. “Even gadgets that are four or five years old still function nicely with Apple.”
Retail Gaps and Supply Challenges
Industry leaders stated that although customer demand for reconditioned devices has been continuously increasing, organized supply is still lagging because of gaps in distribution and quality control.Yug Bhatia, a co-founder of Control Z, stated, “There is definite intent to buy. The challenge is the gap—both in quality and in channels.”
While modern trade operated as “search shops” for comparison-driven purchases, e-commerce platforms used to be rapid “shot shops.” This distinction has become hazy. Regional chains and large-format retailers like Vijay Sales, Reliance Digital, and Croma have not yet significantly expanded their reconditioned offers.
As a result, the unorganized grey market is meeting an increasing portion of demand. “The primary issue that is impeding sales is adequate supply. To increase volumes and sustain supply in the organized market, major retailers like Croma & Vijay Sales are providing exchange programs and store trade-ins, according to Tarun Pathak, research director at Counterpoint.
Frequently asked questions
1. Why is it anticipated that the market for reconditioned smartphones would expand in 2026?
Consumers are turning to more reasonably priced refurbished cellphones as a result of rising new smartphone pricing brought on by increased chip and memory costs. Demand and confidence are being further increased by enhanced quality assurance and direct-to-consumer sales channels.
2. How much did the market for reconditioned smartphones in India expand in 2025?
Industry leaders and Counterpoint Research estimate that the secondary smartphone market expanded by 7–8% in 2025, with more rapid growth anticipated in 2026.
3. Why did Amazon and Flipkart stop selling refurbished phones on a huge scale?
Both platforms reported uneven quality from third-party refurbishers and high return rates. In addition to causing a brief slowdown, this forced specialized players to fortify their own platforms.
4. In India, which brand rules the market for reconditioned smartphones?
Up to 60% of refurbished sales include Apple’s iPhone, which is in high demand. The extended performance life and expensive cost of new iPhones make refurbished models appealing.
5. What is the organized reconditioned market’s largest obstacle?
Bringing demand from the unorganized grey market into the organized ecosystem is the main difficulty, mostly because of deficiencies in large-scale retail distribution, quality assurance, and awareness.
Conclusion
The market for refurbished smartphones in India is expected to grow significantly in 2026 as consumers’ affordability gap widens due to growing new device prices. Refurbished devices are evolving from a compromise to a mainstream option as iPhones drive demand and organized players increase direct-to-consumer channels.
Long-term expansion, however, will require enhancing supply, quality control, and consumer awareness to move more demand from the unorganized sector into reliable, accredited channels.
Disclaimer:
This article is for informational purposes only and does not constitute financial, investment, or purchasing advice. Market data, projections, and statements are based on industry estimates and publicly available sources and may change without notice. Readers should conduct their own research before making any buying or investment decisions.
