Trump tariffs could boost cellphone prices and boost search for seminovos

The market for new phones is booming and promises to grow even more in Brazil, following the international scenario. Flavio Peres, CEO of Trocafone, leader in the purchase and sale of semi-new 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.So a second-hand phone makes a lot of economic sense”, Peres points out.

A pioneer in the segment, Trocafone analyzes the growth of the sector driven by the high cost of new devices and the search of consumers for more affordable alternatives.

Impact of tariffs on electronics 

Donald Trump made official earlier this month his plan to impose 10% tariffs on imports from China, directly affecting Chinese smartphone companies such as Xiaomi and the supply chain of brands such as Apple and Motorola. A study by the Consumer Technology Association (CTA) already projected that this measure could raise smartphone prices by up to US$ 305, while laptops and tablets could suffer additions of up to US$ 540. According to the CEO of Trocafone, the implementation of tariffs, especially on Chinese products, will have a global impact, making new mobile phone launches even less accessible and affordable by reconditioning models.

“With the cost of new smartphones rising, the trend is for more consumers to opt for semi-new and refurbished models, which offer excellent cost-benefit and promote digital inclusion.In addition, it is a sustainable alternative that increases the life cycle of” devices, says Flavio Peres.

Growing demand and market opportunity

Smartphone refurbishment, which involves the purchase, repair and resale of used devices, is already a global phenomenon IDC, More than 195 million units of used smartphones were marketed in 2023 worldwide, an increase of 6.4% compared to 2022, with an estimated market value of US$ 72.9 billion. The forecast is that this number will reach 257 million units by 2028, growing at a compound annual rate (CAGR) of 5.7% 5.7% more than double the new smartphone market, which grows at a rate of 2.8%.

Companies such as Back Market (France), Swappie (Finland) and Cashify (India) have been growing rapidly. Latin America is already the second region with the highest sales growth worldwide in smartphone re-commerce, with an increase of 18% in 2023, second only to the market of India, which grew 19%, according to the Counterpoint Research.

In Brazil, the market for new products still has great growth potential. Currently, the penetration of refurbished smartphones in the country is only 3.3%, well below the 26% of North America, according to Trocafone. “There is still a lot of room for the Brazilian market to follow this growth pace, which derives mainly from the need for more information about the advantages, both when choosing a semi-new model, and to ensure extra income from the sale of appliances stored at home”, explains Peres.

In addition, the used smartphone market is becoming more structured and reliable, with the offer of refurbished devices that have invoice, guarantee and excellent condition.“Esse is an essential differential for those seeking a quality cell phone with a more affordable price, still ensuring the security of the” process, concludes the CEO of Exchange.