That old phone in the kitchen drawer could save an industry

""There's always been a demand for pre-owned devices, but over the past few years the demand has become more mainstream. OEMs, operators and retailers have invested more in this space, and consumers have become more comfortable buying used or refurbished smartphones.""

""It's an even higher drop than we saw during covid or during the inflation-driven slowdown in 2022 to 2023, and if this plays out, shipments could fall back to levels that were last seen around 2013, about 13 years ago.""

""Even the recovery that's expected in 2028 will be limited compared with previous cycles because there is a structural issue in the market that is changing the dynamics.""

""We're seeing replacement cycles are getting longer. Consumers are now holding on to their devices for more than four years. In many markets, there are also fewer players, fewer launches, and just more overall consolidation.""

Sales of secondhand phones are rising, driven by inflation and consumer hesitance towards expensive new models. Counterpoint Research predicts a 12% increase in pre-owned handset sales by 2026. In contrast, new smartphone shipments are projected to drop by 12% this year, potentially falling below 1.1 billion units. The market faces a prolonged weak demand period, with recovery not expected until 2028. Consumers are keeping devices longer, and the market is consolidating, focusing more on premium devices and advanced technology.

Read at Theregister