According to a new report, there is a thriving market for used and refurbished smartphones in the Middle East and Africa. The report, which delves into the rising demand for refurbished smartphones in the Middle East and Africa, found that the MEA smartphone market was deemed the fastest growing in 2023 at 8%, and the growth was driven by factors such as enhanced affordability, expanding digitalisation and growing consumer demand for technology.
According to the report by Canalys, Apple iPhones have a significant presence in channels selling used smartphones in the Middle East, closely followed by Samsung’s premium series and select Chinese brands, such as OPPO.
In Africa, however, the report explained that consumer demand varies greatly between countries due to price. In Kenya, for example, the most popular refurbished smartphones are priced at around US$45, while nearly 80% of refurbished smartphones are priced below US$100.
The report highlighted several factors driving the growth of the used smartphone market in the Middle East and Africa. One of the factors listed was the rising inflation rate, which has led to phone manufacturers increasing the price of new devices, especially premium devices from Samsung and Apple that are priced above the US$1,000 mark.
Another critical factor highlighted was the lack of justification for consumers to upgrade their smartphones. The report explained that the consumers’ willingness to upgrade is low, given that hardware specification upgrades have not sparked the desire to pay.
The report mentioned the rising cost of living coupled with the low purchasing power of consumers in the region as notable factors that have also contributed to the reduced purchase of non-essential items. In addition, Governments and corporations are pushing the ESG theme, forcing vendors to provide more extended warranties, device repair, and after-sales services to extend devices’ lifespans.
Despite the fast-growing refurbished and used phone market of the MEA region, Samsung and Apple are still struggling to maintain market share as shipments are still down compared to previous years.The report explained that low-end competition from Chinese vendors was one of the biggest challenges for Samsung and Apple as demand for affordable, high-quality devices in the region continues to rise.
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