The used smartphone market is booming, largely driven by escalating memory prices, a phenomenon some are calling "RAMageddon." This surge in costs for DRAM and NAND components, essential for phones, tablets, and laptops, has led chipmakers to prioritize high-bandwidth memory for AI data centers, consequently tightening the supply and increasing the prices of standard memory for consumer devices. This has resulted in new flagship smartphones costing $100 to $200 more, prompting consumers to seek more affordable options. Apple CEO Tim Cook noted that the surge in memory and storage costs was unprecedented, signaling inevitable price increases for new devices.
This economic pressure is reshaping consumer behavior, with many delaying upgrades or opting for refurbished and older models. Sales of refurbished iPhones in Japan, for example, more than doubled after Apple's price hikes in July. Globally, refurbished smartphone sales grew by 4% in early 2026, while the primary smartphone market is projected to see a decline of up to 14.8% through the end of the year. Counterpoint, a technology market research firm, noted a 6% year-over-year growth in global refurbished smartphone sales in the second half of 2025, with an expected 11% rise in 2026. This trend is also evident in the US, where consumers received $1.63 billion from mobile trade-in programs in Q1 2026, a 31% increase from the previous year, highlighting the growing reliance on trade-ins and refurbished handsets.
The increasing demand for refurbished devices is also bolstering trade-in values, particularly for devices in better condition, which can fetch up to 50% more than excessively worn or damaged ones. Assurant's data shows consumer interest in purchasing certified pre-owned devices climbed from 17% in 2024 to 25% in 2026. Carriers and retailers are adapting by rethinking bundles that include protection plans and trade-in options to manage costs and retain customers, with 85% of consumers expressing interest in customizable coverage. The rise of certified pre-owned devices, which undergo testing and grading, is also adding trust and transparency to the market, addressing some of the risks associated with buying used electronics.
