Increasing smartphone penetration as well as a high proportion of low to mid-income consumers are driving the Malaysia Used Smartphone Market and is expected to exceed USD 800 Mn by 2026F
Ken Research
GURUGRAM, India, Feb. 7, 2023 /PRNewswire/ -- Malaysia Used Smartphone Market is in the growing stage. It is a fragmented market which is being driven by increasing smartphone penetration, rising awareness to reduce electronic wastes, high proportion of low to mid-income consumers, increasing prices of new smartphones and adoption of 5G network.
- iPhone is the most sold used smartphone in Malaysia. iOS dominates the market in Malaysia.
- A government subsidy program along with relatively smoother logistics facilities drove Malaysia's market in 2021.
- Majority of the people who buy used smartphones prefer to buy a second-hand phone that is only 1-year-old. Buying a smartphone at an early life enables the subsequent user to get the maximum benefits from it.
Growing Demand for Used Smartphones in Malaysia: The growing digitization, virtual classes, remote working, virtual socialization during Covid-19 pandemic led to smartphones being an indispensable part of life. Integration of technology and digital solutions required compatibility of devices with 5G technology, and it became a driving factor for the rise in sales in the smartphone market. However, as the proportion of low- to mid-income consumers is quite high, they prefer to go on online platforms offering refurbished and second-hand smartphones with discounts instead on new smartphones. This in turn has led to the increase in demand of used smartphones in Malaysia.
Rising Average Price of Used Smartphones: As the price of new smartphones have increased, people have started to buy used smartphones as they are affordable. Average price of used smartphones is expected to increase due to a robust demand in the future. Used devices continue to provide cost-effective alternatives to both consumers and businesses that are looking to save money when purchasing a smartphone. Vendors such as Apple, Samsung, and Xiaomi have implemented their own programs with aggressive trade-in offers compared with other channels.
Rising environmental awareness: People around the world have started taking steps to preserve natural resources and use recycled products. Only about 20.0% of mobile phones are recycled each year in Malaysia. Another step being taken by people in Malaysia is buying used smartphones. This will lead to the reduction in electronic wastes as well as the growth of the Used Smartphone Industry in Malaysia.