The used smartphone market is about to swell at a 22.3 percent compound annual growth rate through 2020 as trade-in programs are going global, according to IDC.
IDC forecasts that the market for used smartphones will jump from 81.3 million devices in 2015 to 222.6 million units in 2020. By 2020, the used smartphone market will be worth about $30 billion, with an average selling price of $136.
The demand for used, or refurbished, smartphones is already strong due to device insurance plans. Used handsets are also becoming options for customers with subprime credit.
For IDC's purposes, its forecast defines a refurbished smartphone as one that has been used or disposed of at a collection point, sent to a facility for reconditioning, and then sold via a secondary market. A hand-me-down device doesn't count.