A sharp rise in the buyback prices of used mobile phones has recently captured widespread public attention, trending on social media platforms.
Recyclers across multiple regions in China report a booming market for old phones, with prices climbing across the board. According to China Blue News, one recycler noted that they now accept devices "regardless of model or condition — even if they won't turn on". For instance, a phone with a completely shattered screen, previously valued at around 10 yuan, can now fetch as much as 500 yuan.
Speaking to Qilu Evening News, a seasoned electronics distributor surnamed Liu attributed the increase to the growing demand for memory chips driven by rapid advancements in artificial intelligence. "The current price rally is closely tied to the popularity of specific chips and memory capacity," he said.
At the same time, major manufacturers such as Samsung, Micron, and SK Hynix have shifted production capacity toward high-end AI memory products like HBM (High Bandwidth Memory) in pursuit of higher margins. This has led to a shortage of consumer-grade memory products, further pushing up prices.
According to Liu, recycled chips are priced at just 40 – 60 percent of the cost of new ones. Memory modules and motherboards recovered from old phones, after being repaired and refurbished, have become a key alternative resource for manufacturers of smart locks, surveillance equipment, and other devices.
Addressing potential legal risks in second-hand phone transactions, lawyer Luo Sheng from Shanghai Bangxinliyang (Wuhan) Law Firm warned that privacy breaches remain a concern. Simply performing a factory reset may not be enough, as specialized software can still recover data. He advised users to thoroughly erase personal data in advance or seek professional tools to overwrite the storage.
Luo also pointed out that some recyclers promise high prices before shipping, only to drive down the offer afterward by citing issues like scratches or functional defects — a practice that may constitute fraud. He recommended that sellers document their devices with photos or videos and, if necessary, file complaints with market regulators.
Before selling, Luo suggested that consumers familiarize themselves with market prices, protect their personal information, and choose reputable platforms or sign written agreements to avoid potential pitfalls.