The global refurbished smartphone market dropped year on year (YoY) in 2020, according to the latest Counterpoint Refurbished Smartphone Market Update report.

The report on the devices that go through repairs and enhancements before being resold.

According to the report, the refurbished smartphone market witnessed a “dramatic” decline of 16 per cent in the first half of 2020 compared to the same period in 2019.

The market rebounded slightly in the second half of the year owing to increase in the sales of new device and a “very strong Apple iPhone launch cycle which helped the supply of devices in the secondary market,” as per the report.

“All major countries and regions showed a decline for the full year of 2020, mainly due to Covid-19,” it said.

India and Latin America which are key secondary markets witnessed a 20 per cent and 24 per cent decline, respectively during the first half of 2020.

Senior Research Analyst Glen Cardoza said, “New device sales fell by around 9 per cent in 2020 due to Covid-19 lockdowns and related economic deterrents. This reduced the number of upgrades and smartphones hitting the secondary market. The pandemic caused a significant number of smartphone owners to avoid or delay new purchases.”

However, according to Cardoza, “There were some bright spots in the refurbished smartphone ecosystem.”

Apple’s share in the secondary market increased from 39 per cent to 42 per cent, said Cardoza.

“There were some marketplaces in the secondary market which saw growth, such as Back Market and Recommerce. An increased number of new businesses dealing in preowned smartphones also sprang up. Despite the proliferation of 5G networks, average selling prices (ASPs) of refurbished LTE smartphones grew,” Cardoza added.