Japan Used Smartphones Market Analysis by Type (Refurbished Phones, Used Phones), Price Range (Low-prices, Mid-Priced, Premium), Sales Channel, Application and Region: Trends Analysis and Forecast Till 2030

Market Overview

Japan used smartphone market was valued at USD 940 million in 2023 and is estimated to reach a value of USD 1,366 million by 2030 with a CAGR of 2.5% during the forecast period. In terms of volume, the country recorded sale of 3.76 million units of used smartphones in 2023 with the volume reaching around 5.69 million by 2030 with a CAGR of 6.4% during the forecast period.

A notable trend influencing the Japanese used smartphone market is the increasing demand from foreign tourists, particularly from China, for secondhand iPhones during their visits. In China, iPhones are perceived as a premium status symbol; however, the cost of new models is often significantly higher due to taxes and regional markups. Consequently, Japan's refurbished devices present a more attractive option. Tourists are particularly attracted to Japan's stringent quality checks, certified refurbishment programs, and warranties that guarantee reliability, with many devices sold featuring new batteries and being in excellent condition.

The recent depreciation of the yen has further intensified this trend, making purchases in Japan even more economical for international buyers. Popular shopping districts in Tokyo and Osaka have reported a surge in sales to tourists, some of whom acquire multiple units for personal use or resale in their home markets. This influx of foreign buyers not only enhances overall sales but also underscores Japan's standing as a trusted hub for high-quality, affordable secondhand iPhones within Asia’s expanding recommerce sector.

Key Insights

Based on type, Japan used smartphone market is dominated by Refurbished phones with an active share of 65% in 2023. The refurbished phone market in Japan is influenced by several unique trends that set it apart from other regions.

A significant consumer preference for iPhones prevails, with certified refurbished models, such as the iPhone 13 and 14, gaining popularity due to their reliability and prestige. Retailers and trading companies are collaborating with technology giants to provide certified programs that include battery replacements and warranties, thereby enhancing consumer trust and encouraging repeat purchases. Increasing prices of new smartphones, a result of yen depreciation and rising production costs, are prompting both individuals and businesses to consider refurbished options as cost-effective alternatives.

 Additionally, foreign tourists, especially from China, play a notable role in this market by purchasing refurbished iPhones in Japan, drawn by competitive pricing and stringent quality control measures. Concurrently, a cultural shift toward sustainability and practices related to the circular economy is fostering this trend, positioning Japan as a significant hub for high-quality refurbished smartphones within Asia’s rapidly expanding recommerce market.

Market Dynamics

Certified refurbishment programs with warranties and battery replacements building trust

The emergence and expansion of certified refurbishment programs in the Japan refurbished phone market is identified as one of the strongest growth enablers. These programs, which include warranties and battery replacements, significantly enhance consumer trust. Historically, potential buyers exhibited hesitance in purchasing used devices due to concerns regarding hidden defects, reduced battery performance, and uncertainty about the device’s condition. However, certified programs initiated by major retailers and trading companies, in collaboration with tech giants such as Apple and Google, are transforming this perception.

These initiatives guarantee that every refurbished smartphone undergoes rigorous inspections, component testing, and quality assurance checks prior to sale. The integration of brand-new batteries addresses a prevalent concern for secondhand buyers, as battery degradation can greatly impact device performance and lifespan. The provision of warranties further increases consumer confidence by ensuring after-sales support and protection against potential malfunctions, thus creating an experience akin to owning a new device but at a lower price point. For instance, certified refurbished iPhones in Japan are often priced 20 to 30 percent below their new counterparts, presenting an appealing blend of affordability and reliability.

This strategy not only attracts cost-conscious consumers but also resonates with environmentally conscious buyers seeking high-quality devices without adding to electronic waste. Additionally, the rising demand among foreign tourists, who appreciate Japan’s commitment to stringent quality standards, further supports the effectiveness of these certified programs. By establishing a transparent and reliable ecosystem, certified refurbishment is transforming secondhand phones from a risky alternative into a mainstream, trusted choice. Consequently, these programs are projected to remain a crucial element of market growth, solidifying Japan’s position as a regional leader in high-quality refurbished smartphones.

Consumer skepticism about the reliability and lifespan of refurbished devices

Consumer skepticism regarding the reliability and lifespan of refurbished devices remains a significant restraint in the Japan refurbished phone market. Despite the emergence of certified programs, many buyers associate refurbished phones with hidden flaws, reduced durability, and limited performance compared to brand-new models. A primary source of this skepticism stems from concerns about battery degradation, as consumers often believe that older devices will not hold a charge effectively or may fail sooner than anticipated.

Additionally, perceptions are affected by the fragmented nature of the market, where uncertified sellers and small retailers sometimes offer products of inconsistent quality, reinforcing doubts about the reliability of secondhand phones. Concerns about the authenticity of replaced parts, such as screens or internal components, also deter some consumers, who fear that counterfeit or substandard materials may have been utilized.

Even when warranties and certifications are available, awareness among the broader consumer base remains limited, leading many potential buyers to remain unconvinced about the long-term performance of refurbished devices. For premium models like iPhones, Japanese consumers expect flawless functionality and have reservations about whether refurbished devices can deliver the same seamless experience. This skepticism is compounded in a market characterized by rapid technological innovation, where the allure of owning the latest model often outweighs the perceived risks associated with secondhand ownership.

To overcome these doubts, the industry must establish consistent standards, enhance consumer education, and promote success stories from certified refurbishment programs more widely. Until these issues of skepticism are effectively addressed, hesitation is likely to persist, slowing the adoption of refurbished devices and preventing the market segment from reaching its full growth potential, despite increasing demand driven by affordability and sustainability considerations.

Segmental Analysis

Japan used smartphone market is mainly bifurcated into refurbished and used smartphone category.

A notable shift is occurring in consumer preferences, with a growing inclination towards certified refurbished smartphones that are accompanied by warranties and new batteries, thereby ensuring reliability and longevity. Currently, refurbished devices represent over 60% of the combined used and refurbished market, underscoring a strong trust in quality assurance in contrast to uncertified used phones. This demand is further driven by the depreciation of the yen and elevated prices of new smartphones, rendering refurbished options an appealing blend of affordability and quality.

Additionally, foreign tourists, particularly from China, are boosting sales by appreciating Japan's stringent quality standards and competitive pricing. Refurbished smartphones are also becoming increasingly popular in B2B applications, as companies are purchasing them in bulk for use in logistics, healthcare, and retail operations. Furthermore, a rising cultural focus on sustainability and circular economy practices is enhancing consumer acceptance, positioning Japan as a prominent hub for refurbished smartphones in Asia.

The used smartphones market in Japan is increasingly influenced by two key factors: pricing and volume units, which together drive the supply and demand dynamics within the ecosystem. A notable trend is the rising price sensitivity among consumers, who are seeking affordable alternatives to costly new flagship models. The premium retail prices of smartphones in Japan, combined with frequent product launches, are prompting a shift towards the used smartphones market. Here, competitive pricing allows consumers to access high-performance devices at nearly half the cost of new models. This expanding price gap is not only appealing to budget-conscious shoppers but is also fostering increased adoption among students and first-time smartphone users.

From a supply perspective, pricing is affected by depreciation cycles. Flagship models tend to retain higher resale values, whereas mid-range and entry-level devices experience faster markdowns, thereby enhancing resale volume. The Japanese market is observing steady growth in trade-in programs and second-hand marketplaces, which significantly expand the circulation of used smartphones. Telecom operators, online platforms, and offline retailers are increasingly implementing buyback schemes that facilitate a steady influx of pre-owned devices, increasing the overall volume available in the secondary market.

This rise in volume units is augmenting product variety, providing consumers with more choices across various price points and device categories. Additionally, growing awareness around sustainability and electronic waste reduction is motivating Japanese consumers to extend the lifecycles of their devices, further contributing to higher resale volumes. The interaction between pricing and volume units is creating a reinforcing cycle in which attractive pricing drives higher demand, subsequently boosting resale and trade-in volumes, which, in turn, enhances overall growth in the Japanese used smartphones market. Consequently, pricing strategies and the expansion of volume units are critical trends shaping the competitive landscape within the Japan used smartphone market.

Competitive Landscape

Some of the major companies operating within the Japan used smartphone market are Belong (NTT Docomo subsidiary), Amazon, Tokyo PC, EcoMobile Japan, Sofmap (Bic Camera Group) , Apple Certified Refurbished Store Japan, Mercari Inc., PayPay Flea Market, Others.

The used smartphone market in Japan is characterized by its high degree of fragmentation. It includes a diverse array of telecom operators, retail chains, online platforms, and numerous local stores that collectively create a complex ecosystem. Key players, such as NTT Docomo, KDDI, SoftBank, GEO Holdings, and Bookoff, have implemented formal buyback and resale programs. Meanwhile, online platforms like Mercari, Yahoo Auctions, and PayPay Flea Market enhance the resale landscape.

In addition to these major entities, countless small-scale retailers and second-hand shops operate independently throughout various cities and neighborhoods, often providing competitive pricing and localized services. The significant presence of local stores increases device availability but complicates centralized market tracking efforts. Unlike the standardized operations of larger corporations, smaller stores adopt varied pricing models, employ inconsistent quality checks, and engage in informal trade practices, making data collection and consolidation a challenge.

Consumer preferences in Japan, which lean towards value-driven purchases, combined with a high level of trust in neighborhood shops, further reinforce this fragmented market structure. Consequently, although the market experiences steady growth driven by strong demand for affordable and certified devices, its fragmented nature creates obstacles in accurately measuring sales volumes, pricing trends, and market share, resulting in limited transparency and inconsistent reporting.