Counterpoint Research warned demand for 5G smartphones could prove a boon and a bust for the global refurbished device sector, fuelling demand for higher-tier models at the cost of lower-end units.

The company found 5G devices accounted for 13 per cent of sales of refurbished models globally in 2022, but cautioned the popularity of the devices could accelerate a decline in the price for pre-owned 4G units.

It noted a shift towards higher-priced models ā€œmay bring about a situation where the inventory of low-grade used smartphonesā€ grows ā€œsignificantlyā€. The flip side of this is an expectation of increased opportunities in end-of-life services including disassembly, recycling and e-waste disposal.

Supply chain disruption remained a factor in 2022: senior analyst Glen Cardoza explained the refurbished smartphone market still offers good potential, but noted the ā€œlimited supply is affecting most emerging markets like LatAm, Southeast Asia, India and Africaā€.

Growing availability of device repair programmes are exacerbating the problem, with Cardoza noting these tend to focus on specific regions or nations and contribute to a reduction in the number of high-end models available to less-developed markets.

Research director Jeff Fieldhack added the bias towards mature markets in 2022 favoured larger second-hand device players because they ā€œgot better supplyā€ in a constrained market.

Counterpoint Research found consumers are also willing to sacrifice perfection for price, preferring ā€œa lower cost even if they have to deal with slightly moreā€ flaws, Fieldhack stated.

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