Rising device costs, driven in part by AI-fueled demand for memory chips, are pushing more consumers toward used phones, laptops and other electronics.

The market for refurbished phones and used gadgets is gaining new appeal as the price of new consumer technology continues to climb.

For years, buying secondhand electronics was often seen as a compromise — a cheaper option for shoppers willing to accept older batteries, scratched screens or uncertain warranties. But that perception is changing quickly. As new smartphones, laptops, tablets and gaming devices become more expensive, refurbished technology is moving from a budget fallback to a mainstream buying strategy.

One major reason is the global memory-chip shortage. Demand for artificial intelligence infrastructure has increased pressure on the same types of memory and storage components used in everyday consumer devices, from phones and computers to game consoles. That competition has pushed component costs higher and made it harder for device makers to keep prices stable. Apple has also reportedly faced growing pressure from rising memory costs, a sign that even the world’s most powerful technology supply chains are not immune.

The result is a more expensive upgrade cycle for consumers. New flagship phones already often cost more than $1,000, while laptops and gaming consoles have also been affected by higher component prices. Analysts have warned that relief may not come quickly, because expanding chip manufacturing capacity is costly and slow.

That has strengthened the case for refurbished devices. A used iPhone, Android phone, laptop or tablet can offer much of the performance most people need at a lower price than a new model. For families buying phones for children, students replacing laptops or consumers trying to delay a costly upgrade, the refurbished market offers a practical alternative.

The sector is no longer a small niche. Market researchers project continued growth in refurbished and used mobile phones, with one forecast estimating the global market at $78.6 billion in 2026 and $135.4 billion by 2033. The growth reflects both affordability concerns and a broader shift toward extending the life of electronics rather than replacing them every few years.

Still, shopping used requires caution. Buyers should first consider whether their current device can be repaired instead of replaced. A battery swap, screen repair or storage cleanup can sometimes extend a phone’s life at a fraction of the cost of a new purchase.

When buying refurbished, the safest route is to use reputable platforms or certified programs that inspect devices, grade their condition and offer warranties. Marketplaces such as Back Market, Swappa and other specialist sellers have helped professionalize the secondhand market by giving buyers more information about battery health, cosmetic condition, return policies and device history.

Software support is just as important as hardware condition. A phone that looks new may not be a good deal if it no longer receives security updates. Buyers should check how many years of operating-system support remain, whether the device works with their mobile carrier and whether accessories such as chargers, cables or ports have changed between generations.

There are also trade-offs. Older phones may miss out on the newest artificial intelligence features, advanced cameras or faster processors. Some recent AI tools, for example, only work on newer high-end models. But for many users, those features are not essential. Messaging, browsing, banking, streaming, photography and productivity apps still run well on many previous-generation devices.

The refurbished boom also has an environmental argument. Extending the life of phones and laptops reduces electronic waste and lowers the demand for new raw materials. As consumers become more conscious of both price and sustainability, used devices offer a rare combination: they can save money while reducing waste.

The new reality is simple: buying the latest gadget is no longer always the smartest move. In a market shaped by chip shortages, AI demand and rising prices, the best value may come from technology that has already had one owner.