Industry Dialogue | Digitisation And Affordable Tech: 14 Lakh Pre-Owned Smartphones Sold In 2019

In the last five years or so, things have turned around and how. Since the launch of the ‘Digital India’ initiative by the Government of India in 2015, accessibility to the internet technology and digital tools have improved by leaps and bounds. The knowledge and power have shifted into the consumer’s hands. Right from smartphone trends, accessibility to global brands, detailed handset specifications, price comparison across sales channels, and peer reviews to after-sales service network and loyalty or card-based discounts, the Indian consumer has all the required information and choices at their fingertips. India is one of the fastest-growing smartphone markets in the world. An estimated 90% of the population today has access to digital technology that is an integral part of people’s lives, starting from communication support, managing work, engaging in e-commerce, to fuelling economic growth. The average Indian today is a lot more tech-savvy, heavily dependent on their smartphone, and constantly looking to upgrade to advanced handsets. The resultant shorter upgrade cycle has given a major fillip to the affordable refurbished and used mobile phones market.

As per a Counterpoint Research report, the average refurbishment cycle of smartphones has shortened to a year or two, from three to four years. As more and more customers are upgrading their mobile phones within a shorter span, it has created a supply of sparingly-used options that can be refurbished to a ‘like-new’ condition. In 2019 alone, a staggering 14 lakh pre-owned smartphones were sold in India. That is a growth of 14% from the previous year.

The Indian refurbished device ecosystem is valued between US$6 to US$7 billion and consistently growing at a CAGR of about 10%. A large chunk of the refurbished market continues to be dominated by the unorganized sector. Yet, there is tremendous potential for growth as handset penetration in India is just around 45%.

The organized sector has witnessed phenomenal growth in the last two to three years at about 25% to 30% and while other than the credibility that they bring in through their digital platforms, organized players can give you a multitude of options to choose from across price points and enable an informed decision-making process. Further, they ensure that a complete diagnostic check is conducted on every handset. They can ensure a 100% data wipe with a firmware upgrade and flashing, so that the seller’s personal security is not compromised. As a buyer, you can be assured that any physical damage or software bugs have been dealt with and there are no nasty surprises waiting for you. More often than not, you will also be able to receive all handset-related accessories, as well as a warranty with the purchase for absolute peace of mind.