International Data Corporation (IDC) expects worldwide shipments of used smartphones, inclusive of both officially refurbished and used smartphones, to reach a total of 225.4 million units in 2020. This represents an increase of 9.2% over the 206.5 million units shipped in 2019. IDC projects used smartphone shipments will reach 351.6 million units in 2024 with a compound annual growth rate (CAGR) of 11.2% from 2019 to 2024.

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Much of the 9.2% growth continues to be driven by mature markets in which trade-in emulates a form of subsidy to push consumers to upgrade. Over the past year, we have seen rapid growth in trade-in programs and average selling prices (ASPs) across numerous channels.

Premium flagship offerings continue to rely heavily on trade-in programs to make the upfront cost more affordable to consumers. Vendors such as Apple, Samsung, and Huawei have all implemented their own programs with very aggressive trade-in offers compared with other channels.

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Telcos on the other hand are using trade-in combined with bundling (family plans and services) to get consumers to turn over their old device and upgrade.

Anthony Scarsella, research manager with IDC's Worldwide Quarterly Mobile Phone Tracker: "The used market for smartphones shows no signs of slowing down across all parts of the globe. 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 where they normally would not have a presence is helping these players grow their brand as well as their ecosystem of apps, services, and accessories."