The used iPhone market in Nigeria has grown into a multi-billion-naira industry, driven by increasing demand from consumers looking for premium devices at more affordable prices.
To consumers in Nigeria, Apple’s iPhones are not just seen as a regular smartphone, they are seen as a status symbol. This article explores the dynamics of the used iPhone market in Nigeria, based on interviews with sellers in Computer Village, the largest tech hub in Africa.
According to the Nigerian Communications Commission (NCC), the number of active telephony subscriptions in Nigeria as of March 2024 stood at 219,304,281.
A GSMA report reveals that the level of smartphone adoption in sub saharan Africa is 55%, projected to rise to 86% by 2030 and as a “giant” in Africa, Nigeria is no exception to this. In Lagos, particularly tech markets such as Computer Village, dealers report a steady increase in the popularity of pre-owned iPhones, with economic conditions and global market trends shaping consumer choices. Tomiwa of JosTom Gadgets and Lawrence of Smiley Gizmos, both based in the area, demystify this thriving sector.
Beyond price, Apple’s ecosystem plays a role. Many consumers prefer iPhones due to their perceived prestige, the iOS ecosystem, and long-term software updates that keep older devices running for years. This explains why the six-year old iPhone Xr and iPhone xs and xs Max are compatible with iOS 18. This value proposition helps boost the resale value of demand from a wide range of customers.
Who are the buyers of used iPhones?
The typical customer for a used iPhone in Nigeria spans a variety of demographics. According to Tomiwa, the owner of JosTom Gadgets, his typical customers are “basically looking for a very neat iPhone, with good and clear camera quality.” Lawrence, who runs Smiley Gizmos, points out that his clientele often includes “people trying to swap their current iPhones for a higher grade” or those looking to buy an iPhone for the first time. In this light, consumers vary due to the wide appeal of iPhones, both as a status symbol and a practical tool for communication, social media, and especially photography.
Why do consumers buy used iPhones?
The most cited reason for purchasing a used iPhone is its price. Tomiwa says that “people tend to buy the best grades of the iPhone and save some money. Also, iPhones have a good resale market value compared to other brands.”
Lawrence, who equally agrees with this, also adds that for many buyers, “the production of some earlier iPhones has been discontinued, so the only way to get the iPhone they want is to buy a used one.” And there is an added economic reason of affordability because when opting for a used iPhone, “it’s way cheaper to get one than it is to buy a brand new one.”
Beyond price, Apple’s ecosystem plays a role. Many consumers prefer iPhones due to their perceived prestige, the iOS ecosystem, and long-term software updates that keep older devices running for years. This explains why the six-year old iPhone Xr and iPhone xs and xs Max are compatible with iOS 18. This value proposition helps boost the resale value of demand from a wide range of customers.
According to the August 2024 report on the African smartphone market from Canalys, a global tech market analyst firm, the African smartphone market surged 6% year-on-year in Q2 2024, reaching 17.8 million units, with Nigeria leading shipment volumes in sub-Saharan Africa.
The economic climate in Nigeria, where inflation and currency depreciation have affected purchasing power, also play a huge role in this consumer preference. Many Nigerians are unwilling or unable to spend on brand-new models, opting instead for used devices that provide a similar user experience at for lower price.
For example, while a brand-new iPhone 16 Pro Max retails for $1,199 in the U.S, exchange rate fluctuations (₦1,620.13 to $1 as of September 2024) drive the Nigerian price to around ₦1,942,535 before adding shipping, customs, and retailer markups costs. At that price, many buyers would rather opt for older models like the iPhone 13 Pro Max, at around this same price range.
This price-consciousness is further amplified by the iPhone’s high resale value. Unlike many other smartphone brands, iPhones maintain a strong presence in the secondhand market. “iPhone has good resale market value compared to other brands,” Tomiwa explains while mentioning another reason for the sustained popularity of Apple’s iconic smartphone.
Over the past couple of years, there has been higher demand for used iPhones, especially among young Nigerians. Tomiwa attributes this to the migration of younger people into the iPhone ecosystem, explaining that “a lot of people, especially young people, are now migrating into using it.” Lawrence, though newer to the business, has observed the same trend: “It looked like everyone was trying to get an iPhone these days.”
Where do sellers get used iPhones?
The majority of used iPhones in Nigeria are sourced from abroad, primarily from the UK, USA, and Canada, according to market players. These phones, often referred to as “UK-used iPhones” in our local markets, particularly Ikeja Computer Village, often find their way into the Nigerian market through both official and unofficial channels often referred to by industry players as grey markets. Dealers like Lawrence also acquire phones from local end-users who are upgrading to newer models.
Pricing for used iPhones is closely tied to the condition of the phone and most times fluctuates with the exchange rate. As Tomiwa points out, “the price is determined by the exchange rate. Once the dollar rate is high, prices will also increase.”
Lawrence agrees, noting that “some sellers tie their phone price to the dollar rate. So sometimes the prices are always changing.” Factors such as the neatness of the device, battery health, and whether any parts like the screen or battery have been replaced, all influence the final price.
While the market is lucrative, it also has its challenges. It is relatively a herculean task for the seller to assure quality and authenticity of used iPhones. “Swapping phones from people and ensuring it is not a stolen phone, or after checking the phone and later discovering it has a fault,” are some of the issues Tomiwa faces.
For Lawrence one of the biggest challenges is that “some sellers aren’t always forthcoming with all the details of what they are selling.” He says that from experience, if he doesn’t inspect the phones properly before selling them, customers could come back with complaints about faults that weren’t initially visible.
Competition
The used iPhone market faces stiff competition from other smartphone brands, including Tecno, Huawei, Xiaomi, and Samsung. These brands, which offer budget-friendly options with competitive features, appeal to cost-conscious consumers.
According to the August 2024 report on the African smartphone market from Canalys, a global tech market analyst firm, the African smartphone market surged 6% year-on-year in Q2 2024, reaching 17.8 million units, with Nigeria leading shipment volumes in sub-Saharan Africa.
“Nigeria, which remains the leader in shipment volumes, recorded a modest 5% increase, hindered by persistent inflationary pressures, currency risks, sluggish GDP growth and shrinking disposable income,” according to the authors of the Canalys report.
The analyst firm reports that the sub-$100 segment experienced 42% growth in Q2 2024, as rising costs of living shifted consumer preferences toward budget-friendly devices.
Transsion, the tech group that owns the Tecno, Infinix and iTel brands, dominates with a 51% market share across Africa. Brands like Samsung and Xiaomi follow with 19% and 12% of the market share respectively.
Despite this competition, iPhones maintain a unique hold on the Nigerian market, as both dealers maintain a positive outlook for the future of used iPhone market in Nigeria. “It is a market that has come to stay and doesn’t look like it is ending anytime soon,” Tomiwa says while Lawrence underscores the ubiquity of the smartphone noting that “you see an iPhone everywhere you are.”
The latest kid on the block, the iPhone 16 series is no exception. Despite rising dollar costs and high inflation rate in Nigeria, sellers like Lawrence are optimistic that there would be a rising demand for the new device. As he puts it, “rich iPhone geeks will still get it.” Speaking on the features, he says that “compared to previous models, it’s exciting, but laughable compared to older Android models.”
Consumer tips for buying used iPhones
For consumers looking to purchase a used iPhone in Lagos, it is essential to exercise caution and conduct thorough research. Here are some tips:
- Buy from Reputable Sellers: Purchase from trusted sellers who have a good reputation in the market. Referencing a Technology Times exclusive interview with the Iyaloja of Computer Village, she advocated that buyers should enter a shop with a known address and brand name not from roadside vendors.
- Inspect the Device: Carefully inspect the iPhone to assess its condition and functionality.
- Verify Authenticity: Ensure that the iPhone is genuine and not counterfeit.
- Negotiate Price: Haggling is common in the Nigerian market. Don’t be afraid to negotiate the price.
Both Tomiwa and Lawrence stress the importance of buying from a reputable source. “Ensure you are getting your phone from a reliable source and avoid buying phones from the roadside or transacting with people who don’t have a track record,” Tomiwa says. For Lawrence the buyer must “make sure you’re getting what you paid for. Know the specs and details of the phone.”
Used iPhones: The key terminologies
As a buyer, be conversant with key terminologies. Factory unlocked iPhones, which Tomiwa describes as “the most expensive of all,” allow users to reset the phone without losing functionality.
Locked iPhones, on the other hand, are restricted to specific foreign networks, though chip-unlocked models can work with Nigerian SIM cards if a special chip is installed. Lawrence explains that “chip-unlocked are basically the same because if you want to be able to use a Nigerian SIM on a locked iPhone, you would have to install a chip to your SIM.”
According to him, factory-unlocked, which is the most expensive of all simply means you can wipe the phone, basically factory reset the phone and everything will still work normally.
Locked: it can be chip-unlocked or eSIM-locked. Chip-unlocked means that you have to chip the phone with your normal Nigerian SIM card before it works because the device is locked to the country’s network abroad. On the other hand, eSIM locked means you can’t use any Nigerian SIM card on it. So you will have to connect to a Wi-Fi before using the phone, Tomiwa explains.
As competition intensifies, particularly from brands like TRANSSION and Samsung, the used iPhone market is expected to hold its own in Nigeria’s smartphone market, according to market analysts.
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