Smart Upgrades And Quick Cash How The Booming Used Phone Market Is Fuelling Malaysians Lifestyles

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A man tries an iPhone 16 Pro at an Apple store in Beijing, China, on September 20, 2024. — Reuters picKUALA LUMPUR, Nov 26 — Not too long ago, trading in a used phone was an ad-hoc affair, often involving a bit of haggling at a small, independent store. 
Today, a new generation of professional second-hand retailers like CompAsia, Swapper Malaysia, and CEX have turned the trade-in market into a booming, mainstream industry, fuelling a surge in smart consumer habits and, for some, providing a desperate financial lifeline.
This new, structured ecosystem is what brought 28-year-old digital marketer Viknesh Raj into a store last weekend. For him, upgrading is not a luxury, but a practical necessity.
“I shoot a lot of short videos, so my old phone just can’t keep up,” Viknesh said. “No point burning thousands on a brand new one when you can be smart about it.”
At a CompAsia outlet in Petaling Jaya, 21-year-old retailer Danish Kamal said this mindset is becoming the norm. 
“The iPhone 16 Pro Max costs over RM6,000 brand new. Here, you can get one for under RM4,000, and it still works perfectly,” he said, pointing to the company's motto of giving devices a second chance.
However, he notes that the business is volatile, and prices for used phones fluctuate often.
“Every month, prices drop. Last month, an iPhone 13 Pro Max was RM1,380. Now it’s RM1,220. Customers ask why, but that’s just how it works,” he explained. 
Still, the business has shown no signs of slowing, with major spikes during festive seasons like Hari Raya and Chinese New Year.
Beyond individual savings, this booming trade-in market also offers a partial answer to Malaysia’s accelerating e-waste problem. 
In 2024, the country produced over 55,000 tonnes of e-waste, with discarded mobile phones being a primary contributor. This year alone, it is estimated that Malaysia will generate approximately 24.5 million pieces of e-waste, primarily phones.
The professionalisation of the second-hand market provides a crucial alternative to simply throwing these devices away, helping to extend the life cycle of used devices, keeping them out of landfills and contributing to a more circular economy.
The darker side of the trade
However, the benefits are not just environmental. For many, this formalised market serves a more immediate, and sometimes desperate, purpose.
Kit Goh, CEO of Swapper Malaysia, said many customers now exploit instalment plans to generate instant cash.
“Honestly, most of them just want cash,” Goh said, explaining that some customers traded in devices costing as much as RM6,000 new after paying off just several hundred ringgit to the lenders.
“They get the full cash, but they’ve only paid a small portion of the instalments.”
Chris, an administrative assistant at Qolaf Gadget, echoed this, saying most of his customers are looking to “free up money” rather than get a new device.
He reported seeing a rising number of people buying brand new phones on credit, often the latest iPhones, only to sell them for cash at his shop shortly after, calling this a sign of the market's evolution driven by both necessity and opportunity.
“Sometimes, people come in thinking they will get more by trading their device for cash, but they are surprised at how the prices really work,” he said.
Economic bellwether
Both business owners see the second-hand market as a reflection of the broader economy. 
A new release, like the recent iPhone 17, always triggers a rush of older device trade-ins as people upgrade. 
But economic pressure drives a different kind of behaviour.
“When the economy is not doing well, more people sell their phones,” Goh said. 
He added a crucial caveat: “I wouldn’t call it good for our business exactly, because increased selling does not necessarily mean more buying. It’s all supply and demand.” - malaymail

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