• The secondary smartphone market, which is made up of refurbished and ‘as is’ smartphones, now makes up 20% of China’s total (new+used) smartphone industry.
• The organized sector is booming in China. Sourcing countries are relatively concentrated but export markets are broader. Therefore, for overseas trade, big retailers use Hong Kong as a transit point.
• The unorganized sector has seen intense competition since 2023. There is a shortage of newer A-grade models, especially iPhones. Older iPhone models are still selling in bulk, which resulted in declining ASPs in 2024.
• Apple will continue to rule but, according to a major retailer, due to new iPhone models being perceived as having limited upgrades, refurbished iPhone buyers in China are also considering switching to domestic brands.
• The government’s recent subsidy scheme for new smartphone purchases comes in the form of a discount on the new device when trading in an older smartphone. This is driving bulk supplies into the secondary market but only for entry-to-mid-tier smartphones. High-to-premium-tier smartphones still face supply constraints.
• Growth of refurbished volumes always had a minimal effect on new smartphone sales, but in 2024, the impact was more noticeable. Dynamics have changed, stigma has reduced, and the economic environment is not that great, all of which are pushing more people to opt for refurbished smartphones.

China is still the world’s biggest trading hub for used and refurbished smartphones. Exports to multiple markets have increased and organized players are at the forefront of this growth. The secondary smartphone market, which is made up of refurbished and ‘as is (no technical work is carried out on these pre-owned smartphones; they are resold as is)’ smartphones, now accounts for 20% of China’s total (new+used) smartphone industry. This 20% includes domestic refurbished sales as well as exports.

The Chinese refurbished smartphone market witnessed a YoY growth of 6% in 2024, according to Counterpoint Research’s latest Global Secondary Smartphone Market Report. Growth was seen even in domestic consumption due to increased demand for refurbished smartphones in the mainland.

Used smartphones from the Chinese market are flowing back into the supply chain in larger numbers now, leading to an increase in the proportion of Chinese OEMs’ smartphones as well. However, Apple’s iPhones still dominate the market.

The organized sector has a strong network and good trade ties with Hong Kong and international routes, which makes it easier to manage volumes and profit levels. The unorganized sector has also been able to trade effectively over the last two years, making refurbishing and repairing an essential part of the value chain through a few big hubs in the country. This has increased the share of the secondary market in China’s overall smartphone market.

Access full 4-pager report here.

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