25 Sep 2025 : India’s smartphone market is witnessing a seismic shift, one that has opened up a viable alternative to owning a premium device. Instead of buying new and paying the sticker price, Indians are increasingly considering pre-owned smartphones, which have been suitably refurbished or renewed, as an option for their next purchase.
Data supports that vision, and retail platforms are lining up to find prime positioning to cash in on this trend. Research by Redseer estimates India’s used smartphone market will be worth $10 billion by the end of 2026. But as Mandeep Manocha, co-founder and chief executive officer of re-commerce platform Cashify points out, growth is still restricted by an “untapped drawer economy”. One that has consumers still holding to their old, unused phones.
India’s refurbished smartphone and re-commerce sector is expected to be worth $219 billion by 2033, according to re-commerce platform Cashify’s latest User Behaviour Survey 2025 and Whitepaper, released on Wednesday.
According to the report, India shipped 151 million refurbished smartphones through 2024, a 4% annual increase compared with the previous year. And every 3 in 5 refurbished phone buyers chose an iPhone, in the first half of 2025 — Apple commands 62.9% market share in this space, followed by OnePlus (10.2%), Xiaomi (9.7%) and Samsung (6.1%).
What are refurbished smartphones? These are essentially pre-owned pieces, but unlike typical “used” products, these undergo a series of checks, with fixes and part swaps as required, before they are listed for sale again. This often includes a new battery. Most re-commerce platforms have multi-layered checks in place and offer warranty, making renewed phones a better bet over ‘second-hand’ or pre-used phones that may also be on sale elsewhere.
Delhi, Mumbai and Bengaluru lead renewed smartphone purchases, but smaller cities are catching up fast. Prices of new tech, particularly smartphones, are the primary reason why buyers are looking for value with renewed phones. The average selling price of smartphones has grown annually at 38% between 2020 and 2023, according to research firm International Data Corporation (IDC).
“This in turn has elongated the average smartphone replacement cycle in India from 24 months to almost 36 months currently,” Navkendar Singh, associate vice president with IDC India, pointed out earlier. While the government has restructured GST, or Goods and Services Tax categories this month, smartphones continue to attract 18% tax.
ControlZ, a smartphone refurbishing startup, is lining up the launch of what they call India’s first bamboo-made smartphone manufacturing plant, in Gurugram, this November. This comes just after their first offline store opened doors earlier this month.
“This is the right time to bring that experience offline—because consumers today care about both value and sustainability, but they also want trust. Our new store makes it easy, as people can feel the quality, and leave with a device that’s like new,” says Yug Bhatia, founder and chief executive officer of ControlZ.
Old, might be gold: But are we willing to find out
Despite estimates and momentum, Manocha said inertia was holding back India’s re-commerce industry.
“Millions of devices still lie idle in drawers, depreciating in value, when they could be extending their life in someone else’s hands. Our findings clearly show that consumers are increasingly embracing resale and re-commerce, yet the untapped ‘Drawer Economy’ highlights the urgent need for trusted, transparent platforms,” said Manocha.
They draw this conclusion from responses from 10,000 survey respondents, 70% of whom admit to having 2–3 unused phones at home — that, across India, signals lakhs of rupees worth of untapped value. As the “drawer economy” gradually transforms into active economic participation, the refurbished smartphone market could become a significant contributor to both economic growth and environmental sustainability in India.
Smartphone makers too want to play a part. Google announced this month that they are bringing certified refurbished Pixel smartphones to Indian consumers. “Our collaboration with Cashify is a significant step in making the premium Pixel experience more accessible in India, while also advancing our commitment to a circular economy,” explained Prem Pandian, global head of strategic initiatives and partnerships, Google Hardware.
India’s homegrown e-commerce marketplace Flipkart is plugging in its new exchange program across smartphones also covering the quick commerce Flipkart Minutes service, with the re-commerce initiative. For example, an old mobile phone can be traded in for a new laptop.
“The future of re-commerce lies in enabling smarter, more sustainable choices, and the exchange program on Flipkart is a major step in that direction. We’re leveraging technology, logistics, and deep consumer insights to build an ecosystem where every idle device or appliance becomes a currency for better, more affordable upgrades,” said Ashutosh Singh Chandel, senior director & business head for Re-Commerce, at Flipkart.
Banks and payment platforms are beginning to find value in the re-commerce momentum around smartphones. This month, ControlZ announced a sale on renewed iPhones and OnePlus devices, which found partners in HDFC Bank and fintech OneCard, for instant discounts on EMI transactions. As Bhatia said, for years, flagship smartphones have been symbols of aspiration that many have admired but few could access and they are now democratising that dream.
Summary:
Addressing the ‘drawer economy’—unused or idle smartphones—is essential for India to fully realize its $219 billion potential in the renewed mobile phone sector, boosting production and consumption.