TOKYO: The market for used iPhone smartphones of US technology giant Apple Inc. is booming in Japan as new models are becoming increasingly expensive amid the historic depreciation of the yen.

The direct sales price of the cheapest handset from the newest iPhone 14 series stood at over 100,000 yen at the time of the release in September. The hefty price tag has led to consumers turning to older models, which has fueled concerns that the increased demand may inflate prices of used phones as well.

“Society is starting to become interested in used smartphones,” said Daisuke Inoue, president of Belong Inc., a Tokyo-based operator of an online shop for used smartphones.

Since Apple raised its direct sales prices of the iPhone 13 series in July, daily sales at Belong’ website have roughly doubled. In particular, relatively new models, such as iPhone 11 handsets released in 2019, and those launched later, are popular on the site.

Industry peer Iosys, based in the city of Osaka, western Japan, has been seeing sales of used iPhones increase more than 70 pct in terms of value since July.

According to a survey by MM Research Institute Ltd., some 2.12 million used smartphones were sold in the country in fiscal 2021 to March this year, hitting a record high. In fiscal 2026, annual sales are expected to reach 3.42 million units, according to the think tank.

However, the jump in demand is seen pushing up prices. According to Iosys, many people are turning to used iPhone 13 models, instead of the expensive iPhone 14 series. The influx in buyers has resulted in the iPhone 13 handset with the smallest memory selling at around 100,000 yen at the company’s shopping website, close to what unused handsets are priced at.

“With demand matching supply, prices may not fall as they previously had,” an Iosys official said.

On a yen basis, prices of iPhone 14 handsets are lowest in Japan among 37 countries and regions around the world, according to MM Research Institute.

Apple may increase iPhone 14 prices, which may lead to the supply-demand balance for used iPhones becoming tighter, industry sources said.

JIJI press