India’s refurbished smartphone market is projected to grow by 12% this year while new device shipments are expected to fall by 11%. Rising component costs have pushed up new device prices, leading consumers to shift toward certified pre-owned electronics.
India’s electronics sector is witnessing a distinct shift in consumer behavior as rising costs for memory and other core components make new devices significantly more expensive. As a result, the refurbished technology market is expected to outperform new product sales throughout 2026.
Growth In Secondary Market Demand
Data from Counterpoint Research indicates that the refurbished smartphone segment in India is on track for a 12% year-on-year growth rate. This trend stands in contrast to the broader market for new smartphones, which is projected to see an 11% contraction in shipments. The laptop segment is following a similar trajectory, with professional and personal users increasingly choosing certified pre-owned hardware as a cost-effective alternative to new, higher-priced models.
Impact Of Rising Hardware Costs
Recent market data highlights the pressure on consumers. Research from IDC shows that the average selling price for smartphones in India hit $302 in the first quarter of 2026, marking a 10.4% increase compared to the previous year. This price hike is driven by elevated costs for essential components like memory chips and processors. Industry reports suggest that over 85% of smartphone models have seen price increases averaging 15% this year, with many new launches priced 30% to 40% higher than older versions.
Sector Trends And Manufacturer Strategy
The trend is further reflected in the declining demand for new hardware. Omdia estimates that laptop shipments in India will fall to 14.3 million units in 2026, down from 15.8 million units in 2025. In response to these shifting preferences, major players are realigning their business models to capture value in the secondary market. Samsung, for example, expanded its official certified refurbished program in India earlier this year to address the growing demand for affordable, trusted devices.
For investors, this shift highlights a change in how technology companies may generate revenue. While new device sales face headwinds from higher pricing and demand sensitivity, the secondary market offers a way for manufacturers to maintain brand loyalty and recurring consumer engagement. A key factor to track will be whether major manufacturers continue to formalize these programs, as increased competition from organized players could pressure the margins of independent refurbished dealers and impact the overall pricing structure of the secondary market.