Japan's Used Smartphone Market Surges as New Device Prices Climb
Tokyo, Sunday, 20 October 2024.
Japan’s secondhand smartphone sales are projected to reach a record high in fiscal 2024, driven by rising prices of new devices and economic pressures. This trend reflects changing consumer behavior and the growing acceptance of used electronics in the world’s third-largest economy.
Economic Factors Driving the Shift
The surge in used smartphone sales in Japan is primarily attributed to the sharp rise in prices for new devices. The yen’s depreciation and increased material costs have significantly inflated the cost of new smartphones, making them less accessible to the average consumer. As a result, more people are opting for used devices, which offer a more affordable alternative without compromising on functionality. This trend is not only reshaping consumer habits but also altering the market dynamics in Japan’s electronics sector[1].
Consumer Acceptance and Market Growth
The acceptance of used smartphones among Japanese consumers has grown remarkably. According to MM Research Institute Ltd., sales of used smartphones are expected to increase by 15.5% from the previous year, reaching 3.15 million units in fiscal 2024. This marks the sixth consecutive year of growth in this sector. The popularity of secondhand devices is further bolstered by foreign visitors, particularly from China, who are purchasing these devices in large numbers. This has led to a rise in the market share of used smartphones within the overall smartphone sales in Japan, from 9.7% in fiscal 2023 to an anticipated 10.8% this year[1].
Technological Implications and Corporate Demand
The technological landscape in Japan is witnessing a shift as more consumers and corporations turn to secondhand devices. Companies like Belong Inc. are seeing an increase in demand from the corporate sector, where used smartphones are employed for various applications such as inventory management and electronic medical records. This trend underscores the reliability and utility of used smartphones in professional settings, further enhancing their appeal[1].
Regulatory and Market Outlook
In response to the growing secondhand market, Japan’s communication ministry has proposed measures to support this trend. An expert panel recommended that telecom carriers should not restrict the use of secondhand phones due to unpaid bills by previous owners. This regulatory support is likely to boost consumer confidence and further stimulate market growth. Looking ahead, the used smartphone market is projected to expand significantly, potentially reaching 4.38 million units by fiscal 2028[1].