A report by the Wall Street Journal (WSJ)has shed light on how smartphones today are getting too expensive. An in-depth report reveals that despite offering top end features and the latest hardware, many buyers are looking at used or refurbished devices that go easy on their wallets.

A woman uses her iPhone X. Image: Reuters

Premium smartphone pricing has been increasing year by year with Apple raising the bar this year with an iPhone X that may be expensive for international markets like the Americas and Europe, but are outrageously expensive in countries like India thanks to heavy import duties. Apple's new iPhone range in 2017 in India started from a premium Rs 66,120 for an iPhone 8 with the iPhone X Rs starting from Rs 92,430 ($ 1,418)  for the 64 GB models. The price tags went up even higher after the Budget 2018 the iPhone X now selling at Rs 95,390 for the 64 GB model while the 256 GB variant selling for a pricey Rs 1,08,930.

While premium smartphones do offer a premium experience with better imaging and faster processing, they come at really steep prices. Steep enough to convince many buyers to look at the refurbished or the second hand market. According to the WSJ report, plenty of buyers internationally are following suit.

The same report hints at a research by market research firm Counterpoint which points out that 1 out of 10 devices sold around the globe is a refurbished unit.

Used or refurbished smartphones basically perform the same as their newer counterparts but sell for a lot less, sometimes at half the price of the original. While it may seem like win win for buyers, it does not work well for manufacturers.

Sales of new smartphones reportedly dip towards the end of the every year, with most buyers browsing for second-hand devices. A part of the reason for this in markets other than India, is the leasing programs that are available with carriers abroad.

The bottomline remains that smartphones do not lose value easily, and this is specially the case with premium segment devices, that fetch a good value both for second hand buyer and owners who are upgrading to newer models.