A new International Data Corporation (IDC) forecast projects used smartphone shipments will reach 332.9 million units in 2023 with a compound annual growth rate (CAGR) of 13.6% from 2018 to 2023.
Total units shipped for 2019 were estimated to be 206.7 million units, an increase of 17.6% over the 175.8 million units shipped in 2018.
The research firm attributes last year’s and the projected growth to an uptick in demand for used smartphones that are far less expensive than the new models. Additionally, OEMs have had a hard time producing new models with what consumers consider a reasonable price for any new or upgraded features.
IDC expects the deployment of 5G networks and smartphones to impact the used market as smartphone owners begin to trade in their 4G smartphones for the promise of high-performing 5G devices, though other research firms have questioned the impact 5G will have, at least for a few years.
“In contrast to the recent declines in the new smartphone market, as well as the forecast for minimal growth in new shipments over the next few years, the used market for smartphones shows no signs of slowing down across all parts of the globe,” said Anthony Scarsella, research manager with IDC’s Worldwide Quarterly Mobile Phone Tracker, in a prepared statement. “Refurbished and used devices continue to provide cost-effective alternatives to both consumers and businesses that are looking to save money when purchasing a smartphone. Moreover, the ability for vendors to push more affordable refurbished devices in markets in which they normally would not have a presence is helping these players grow their brand as well as their ecosystem of apps, services, and accessories.”