Rising memory chip prices, which have prompted smartphone brands to increase prices in recent months, are beginning to alter consumer buying behaviour, with more users opting for refurbished devices and trading in their existing handsets to reduce upgrade costs.
Affordability Crunch
According to Counterpoint Research, India’s refurbished smartphone market is expected to grow 12% year-on-year in 2026, even as shipments in the new smartphone market are projected to decline 11%. The research firm said higher prices are pushing a section of consumers to reconsider buying brand-new devices.
“Due to smartphone prices continuously going up, around 14% of users are now considering buying a refurbished smartphone instead of a new one,” Tarun Pathak, research director at Counterpoint Research, told FE. He said the widening gap between new and refurbished smartphone prices is making certified pre-owned devices increasingly attractive, particularly for consumers looking for premium features at lower prices.
The rise in handset prices is also expected to change upgrade behaviour by encouraging more consumers to exchange their old smartphones instead of keeping them unused. “People will trade more this year to reduce the upfront cost and that will give a push to secondary supply. Otherwise, such devices are normally left in drawers,” Pathak said, adding that higher trade-ins would improve the availability of refurbished smartphones over time.
Refurbished smartphone platforms said they are already witnessing both stronger demand and higher consumer interest in trade-in programmes. Cashify said demand for refurbished smartphones has continued to grow through 2025 and into 2026, with organised trade-ins becoming an increasingly important part of the replacement cycle.
Recommerce Boom
“The broader market data points firmly toward rising demand, not reluctance,” Nakul Kumar, co-founder of Cashify, said. He said higher memory and component costs are expected to widen the price gap between new and refurbished devices, prompting more buyers to consider certified pre-owned smartphones. According to the company, demand has been strongest in the mid and mid-premium segments, where consumers are looking for flagship-like features without paying flagship prices.
Apple-focused recommerce platform Grest is also seeing demand accelerate. The company said it is currently growing about 20% month-on-month and expects its monthly recurring revenue to triple during the festive season. Demand has been particularly strong for premium Apple devices, with iPhone 15 and iPhone 16 models priced above Rs 40,000 seeing robust sales following Apple’s recent price increase.
Shrey Sardana, co-founder and CEO of Grest, said customers are now buying refurbished Apple products across a wide price range, from Rs 15,000 to Rs 1 lakh, indicating that the market is expanding beyond budget-conscious buyers. He added that as Apple’s installed base in India continues to grow, more devices are expected to enter the secondary market through upgrades, buyback programmes and trade-ins, improving the supply of certified refurbished smartphones over the longer term.