“Refurbished” used to be a dirty word in tech. But today, buying second-hand carries its own social cachet.
Refurbished phones are better for the planet, easier on the wallet, and look and feel as good as new. And with smartphones fast approaching peak performance, it’s getting harder to tell this year’s model from last. It’s little wonder more of us are choosing to buy pre-owned.
One in four phones purchased in the US is now refurbished, and the global market for second-hand phones is projected to hit $131 billion by 2033.
With tariff uncertainty threatening to send the price of new smartphones skyrocketing, those numbers may be about to get a lot higher. Old phones are no longer obsolete, they're big business.
Winning the refurbished market
Consumers looking for second-hand phones now have plenty of options.
Marketplaces like Back Market, Reboxed, and the original “recommerce” platform, eBay, offer wide selections online. Shoppers can also head in-store to retailers like Best Buy and Walmart, or go direct to manufacturers such as Apple and Samsung, which sell their own certified pre-owned devices directly to cost-conscious consumers.
To attract more shoppers in a crowded market, refurbished sellers are doubling down on the two things that matter most to this audience: quality and price. The challenge is to deliver on both fronts without sacrificing margin. Not easy when the cost of parts and labor is high.
Of course, there is a way to offer unbeatable prices on smartphones without taking a hit to your bottom line or compromising on quality. The world’s most successful smartphone sellers have been doing it for years. But, until recently, this strategy was out of reach for most retailers.
With the arrival of Gigs, that’s changed. Now, leading marketplaces are widening their margins and capturing market share, all by borrowing a blueprint from the original masters of phone retail: mobile networks.
Turning shoppers into subscribers
Some people are surprised to learn that the world’s top smartphone seller isn’t Apple or Samsung, it’s mobile carriers.
In the US, the vast majority of people get their phone from their mobile network. 71% of all US iPhones, for example, are purchased through networks like AT&T and T-Mobile.
There are a couple of driving forces behind that data.
First, the revenue earned from wireless plans allows carriers to offer smartphones at subsidized rates, or even for “free” as part of long-term installment plans. Second, consumers are conditioned to expect their new phone to come bundled with connectivity. Since the early days of mobile phones, the device and the plan have gone hand in hand.
The rise of eSIM technology has added another layer to that dynamic. The latest smartphone models are eSIM-only, meaning customers can no longer just put their old SIM card in their new phone. And getting an eSIM from a carrier isn’t always straightforward. Many providers still require an in-store visit, a hassle most customers would rather avoid.
This creates an opportunity for retailers that can offer the simplicity of high-quality connectivity “right out of the box”.
By bundling refurbished devices with mobile plans, retailers significantly increase their margins, and can use the additional revenue to offset device discounts across the board.
As a result, they will win more of the refurbished phone market and develop long-term relationships with their customers that drive repeat sales.
Mobile made simple
Until recently, launching a mobile network was an enormous logistical challenge involving months of carrier negotiations, multimillion-dollar commitments, and complex integrations. Not to mention the ongoing cost and complexity of support and maintenance.
Telecom was a thorny world; most businesses steered clear.
But times have changed. Gigs, the world’s first telecom OS, now gives companies access to top-tier networks in multiple markets through a single integration, making it possible for companies to launch phone plans to their customers effortlessly.
Gigs automates every aspect of running a mobile service, from eSIM distribution to billing and customer support. This radically lowers the cost and complexity of offering connectivity, making it possible to launch a mobile service in weeks, with minimal upfront investment or ongoing cost.
In other words, connectivity has become a high-margin business that's easy to enter—making it an increasingly popular lever for growth among retailers.
Less waste, more value
The refurbished device movement has already gone mainstream, driving a shift toward a more accessible, less wasteful tech industry. Mobile connectivity is the missing piece that will take things further, making refurbished phones the preferred option for more of us.
By pairing pre-owned devices with wireless plans, retailers will attract a wider audience, including those who, until now, hadn’t considered buying a second-hand phone.
In an industry too often associated with overconsumption and throwaway culture, that feels like something worth striving for.
