The refurbished smartphone market has a trust problem.
According to the GSMA Global Consumer Survey on Circularity, almost half of consumers surveyed said they would consider buying a refurbished phone for their next device. Yet, in most markets, fewer than one in ten actually do.
The refurbished phone market has grown steadily in recent years, strongly outpacing the growth of new devices sales. With the right conditions, it has the potential to expand much further.
The question is: what is holding consumers back?
The Barrier isn’t Price, but Trust.
Price is one of the biggest reasons consumers consider refurbished smartphones.
Our survey found that buyers are attracted by the opportunity to save money or to afford a higher-end model than they could buy new or a brand they couldn’t otherwise afford. Three-quarters of consumers surveyed expected refurbished phones to cost up to 40% less than new devices – broadly in line with today’s market pricing.
But affordability alone isn’t enough.
Consumers surveyed said they lack confidence in what they’re buying:
- – 86% of consumers worry a refurbished phone might break sooner than a new device
- – 92% say quality assurance – proof the device actually works as promised – is important or very important to them.
The findings are clear: consumers aren’t rejecting refurbished phones. They’re hesitating because they can’t easily judge the quality of the product they will receive and therefore don’t trust refurbished devices.
Why Refurbished Phone Grading Currently Creates Confusion
Today’s refurbished market lacks a common language.
One retailer’s “Excellent” is another’s “Good”. Even when sellers use the same word, their underlying criteria for screen condition, battery health, or warranty length can differ significantly.
For consumers, comparing refurbished devices becomes difficult. Instead of making an informed purchase, they are forced to interpret inconsistent grading systems and conflicting claims.
Every inconsistency reduces confidence—and confidence is essential for a market built on trust.
A Possible Fix: Consistent Labelling and Grading
A consistent, transparent labelling system could make buying refurbished phones far simpler.
Consumers should be able to compare devices knowing that a particular grade means the same thing regardless of where they shop. Clear information about cosmetic condition, battery performance, testing, warranty, and repair standards would reduce uncertainty and make purchasing decisions easier.
There is already a successful model for this approach.
The EU Energy Label has spent decades proving that clear, consistent, at-a-glance information genuinely changes how people shop – a strong signal that similar thinking could work for refurbished electronics too.
Labelling Alone isn’t Enough
Of course, labels are only part of the solution.
Warranties, battery life, screen durability, and how long a device keeps receiving software and security updates all shape whether a phone is worth buying second-hand – and worth keeping for years. A trusted label is only as valuable as the device and standards sitting behind it.
Why This Matters Now
The timing could not be more important.
Global memory chip shortages are increasing the cost of new smartphones in 2026, particularly for entry-level and mid-tier devices. As new devices become more expensive, more consumers are likely to keep their phones for longer or consider buying refurbished instead.
It’s also raising the stakes for manufacturers and operators, who face growing pressure to support longer device lifespans and gain market share in the rapidly growing circular market already worth hundreds of billions.
Building a Trusted Secondary Smartphone Market
A healthy secondary market should make buying refurbished phones as straightforward as buying new ones.
Today, fragmented grading and an unorganised peer-to-peer segment often leaves consumers with little assurance about product quality. A stronger market would provide consumers with a shared verifiable framework for assessing refurbished devices, giving buyers confidence regardless of where they purchase.
A Significant Growth Opportunity
The business opportunity is substantial.
With annual growth rates of more than 10% projected for the next several years, the global refurbished smartphone market could reach more than $150bn by 2030. That growth represents more than commercial opportunity — it also supports climate goals by extending device lifespans, reducing electronic waste, and improving resource efficiency.
Last year, we explored how mobile network operators can capture this opportunity in Rethinking Mobile Phones: The Business Case for Circularity. The next step is creating the trusted marketplace consumers need.
What’s Next?
To help move the industry forward, a new report developed by FDM CCS Insight, commissioned by the GSMA, examines today’s refurbished smartphone labelling and certification landscape. It explores existing approaches, identifies gaps, and outlines practical pathways towards a more consistent, transparent, and trusted refurbished phone market.
If the industry can close the trust gap, it can unlock millions more consumers who are already willing to buy refurbished devices, they simply need greater confidence in what they’re buying.