Refurbished smartphone volumes rise 13% in H1 as new-device sales fall 11% in India: Counterpoint

India’s refurbished smartphone market is gaining momentum even as the new-device market contracts, highlighting a growing shift in consumer buying patterns amid rising handset prices. Refurbished smartphone volumes grew 13% year-on-year in H1 2026, while new smartphone volumes declined around 11%, according to Counterpoint Research’s Global Pre-Owned Smartphone Market Report.

The divergence comes as rising component costs, particularly for memory, push up the cost of new smartphones and make older premium devices increasingly attractive to price-conscious consumers.

Rising component costs change the value equation

The pressure is particularly visible in the entry and mid-range segments, where higher prices are prompting consumers to consider refurbished premium smartphones offering better specifications at a lower upfront cost.

“Rising memory prices are changing the value equation for consumers,” Counterpoint Senior Analyst Prachir Singh said. As new smartphone prices rise, refurbished devices offer a more affordable route to premium specifications, while the availability of EMI and financing options is making such devices accessible to a wider consumer base, he added.

Trade-in and exchange programmes are also becoming important supply drivers, with better exchange valuations, instant discounts and flexible upgrade offers encouraging consumers to return older devices. This can increase the flow of recent-generation smartphones into refurbishment networks.

Singh also pointed to software longevity as an increasingly important factor in the secondary market. Smartphones receiving longer operating-system and security updates can have a stronger “second life”, potentially improving their appeal as certified refurbished purchases.

Organised channel holds only 20%

Despite the growth, India’s refurbished smartphone market remains dominated by informal trade. The organised channel accounts for around 20%, leaving the unorganised segment with approximately 80% of the market.

Counterpoint said the organised ecosystem is gradually expanding through retailers, OEM-led programmes, recommerce platforms and certified refurbishment players. Greater formalisation could improve quality standards, transparency and consumer confidence.

Samsung held a 30% share of India’s refurbished smartphone market in H1 2026, followed by Apple at 23%. Counterpoint said the iPhone 13 was among the preferred refurbished models, reflecting continued demand for older premium devices.

Market seen growing 16% in 2026

Counterpoint expects India’s refurbished smartphone market to grow 16% in 2026, supported by higher new-device prices, premiumisation and rising consumer acceptance of pre-owned smartphones.

Research Director Tarun Pathak said the growth reflects a fundamental consumer shift as new-device prices rise. He also highlighted the expanding organised ecosystem and increasing institutional interest in India’s recommerce market.

The festive season and launches of new flagship smartphones could provide an additional boost in H2 by driving trade-ins and increasing the supply of recent-generation devices into the secondary market.