The used cell phone market is booming and is expected to grow even more in Brazil, following the international trend. Flávio Peres, CEO of Trocafone, a leader in the buying and selling of pre-owned 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,” Peres points out.
A pioneer in the segment, Trocafone analyzes the growth of the sector driven by the high cost of new devices and consumers' search for more affordable alternatives.
Impact of tariffs on electronics
Donald Trump officially announced, earlier this month, his plan to impose a 10% tariff on imports from China, directly affecting Chinese smartphone companies like 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 see increases of up to US$ 540. According to Trocafone's CEO, the implementation of tariffs, especially on Chinese products, will have a global impact, making new cell phone releases even less accessible and boosting demand for used and refurbished models.
“With the cost of new smartphones rising, the trend is for more consumers to opt for pre-owned and refurbished models, which offer excellent value for money and promote digital inclusion. Furthermore, it is a sustainable alternative that increases the life cycle of devices”, says Flávio Peres.
Growing demand and market opportunity
The reconditioning of smartphones, which involves the purchase, repair, and resale of used devices, is already a global phenomenon. According toIDCIn 2023, more than 195 million used smartphones were sold worldwide, a 6.4% increase 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 growth rate (CAGR) of 5.7% – more than double the new smartphone market, which is growing at a rate of 2.8%.
Companies like Back Market (France), Swappie (Finland), and Cashify (India) are growing rapidly. Latin America is already the second region with the highest global sales growth in smartphone re-commerce, with an 18% increase in 2023, behind only the Indian market, which grew by 19%, according to theCounterpoint Research.
In Brazil, the used car market still has great growth potential. Currently, the penetration of refurbished smartphones in the country is only 3.3%, well below the 26% in North America, according to Trocafone. "There is still much room for the Brazilian market to keep up with this growth rate, which mainly stems from the need for more information about the advantages, both when choosing a used model and to ensure extra income from selling the devices stored at home," explains Peres.
Furthermore, the used smartphone market is becoming more structured and reliable, with the availability of refurbished devices that come with receipts, warranties, and excellent condition. "This is an essential differentiator for those seeking a quality phone at a more affordable price, while still ensuring the security of the process," concludes the CEO of Trocafone.
