The market for refurbished cell phones is in full expansion and promises to grow even more in Brazil, following the international scenario. Flávio Peres, CEO of Trocafone, the leader in buying and selling refurbished smartphones in the country, highlights that the sector has the potential to double in size in the coming years, following global trends.
“The average Brazilian would need four salaries to buy a new iPhone. That’s why a second-hand cell phone makes a lot of economic sense,” emphasizes Peres.
A pioneer in the segment, Trocafone analyzes the sector’s growth driven by the high cost of new devices and consumers’ search for more affordable alternatives.
Impact of tariffs on electronics
Donald Trump formalized, at the beginning of this month, his plan to impose 10% tariffs on imports from China, directly affecting Chinese smartphone companies like Xiaomi and the supply chain of brands like Apple and Motorola. A study by the Consumer Technology Association (CTA) already projected that this measure could raise smartphone prices by up to $305, while laptops and tablets could see increases of up to $540. According to Trocafone’s CEO, the implementation of tariffs, especially on Chinese products, will have a global impact, making new smartphone releases even less accessible and boosting demand for refurbished and second-hand models.
“With the cost of new smartphones rising, the trend is that more consumers will opt for refurbished and second-hand models, which offer excellent cost-benefit and promote digital inclusion. Moreover, it’s a sustainable alternative that extends the life cycle of devices,” says Flávio Peres.
Growing demand and market opportunity
The refurbishment of smartphones, which involves buying, repairing, and reselling used devices, is already a global phenomenon. According to IDC, over 195 million units of used smartphones were sold worldwide in 2023, a 6.4% increase compared to 2022, with an estimated market value of $72.9 billion. The forecast is that this number will reach 257 million units by 2028, growing at a compound annual growth rate (CAGR) of 5.7%—more than double the new smartphone market, which grows at a rate of 2.8%.
Companies like Back Market (France), Swappie (Finland), and Cashify (India) have been growing rapidly. Latin America is already the second-fastest-growing region globally in smartphone resales, with an 18% increase in 2023, trailing only India’s market, which grew by 19%, according to Counterpoint Research.
In Brazil, the refurbished market still has significant growth potential. Currently, the penetration of refurbished smartphones in the country is only 3.3%, well below North America’s 26%, according to Trocafone. “There is still much room for the Brazilian market to catch up with this growth rate, which stems mainly from the need for more information about the advantages, both when choosing a refurbished model and ensuring extra income by selling unused devices stored at home,” explains Peres.
Moreover, the used smartphone market is becoming more structured and reliable, offering refurbished devices that come with invoices, warranties, and excellent condition. “This is a crucial differentiator for those seeking a quality phone at a more affordable price while ensuring the security of the process,” concludes Trocafone’s CEO.
