Vijayawada: A surge in demand for processors and memory components, driven by global shortages and rising artificial intelligence (AI) workloads, has transformed discarded mobile phones into a valuable commodity in Vijayawada. Several local dealers and showrooms are now offering cash, gifts or exchange deals for non-working 4G and 5G handsets, with some offers reportedly reaching ₹25,000.
Why old phones are worth more
Traders attribute the renewed interest in dead phones to a tight global supply of memory chips and processors. Market participants in the city said prices of certain memory components have jumped sharply — with some segments seeing increases of over 300% — making salvage of functional modules from older phones profitable.
“Demand for old phones started growing around December last year and has been steadily increasing,” said Krishna, identified in the reporting as a mobile trader based in Vijayawada. He said buyers from larger markets, including Hyderabad and Mumbai, are visiting the city to procure handsets for components.
“Even phones with shattered screens or severe damage are being sought if their motherboards, processors or memory chips remain useful,” Krishna said.
What dealers are paying
Offers vary by device specifications and the condition of internal components. Rates being advertised on social media and in-store include:
- As much as ₹25,000 for certain non-working 4G/5G phones, depending on processor, RAM and storage capacity.
- Reportedly up to ₹20,000 for non-working 5G models with 256GB storage.
- Higher premiums for devices with intact motherboards or current-generation chipsets.
Dealers said the focus has shifted from phones as working consumer products to phones as sources of parts — processors, memory chips, camera modules and motherboards. In many cases, handsets that would previously have been rejected during exchange programmes are now acceptable if key components can be recovered.
Local market dynamics and consumer impact
Traders reported that mobile showrooms and independent buyers in Vijayawada are using social-media platforms such as Instagram to advertise purchases of old phones for cash or as part of exchange deals for consumer goods. The trend has broadened the pool of sellers to include households with damaged or obsolete devices, and created new short-term income opportunities.
For consumers, the changing market means improved options for disposing of non-working phones. Where exchanges had earlier required functional devices and diagnostic checks, buyers are now prepared to evaluate internals. That could benefit owners of damaged handsets who would otherwise face disposal or low-value trade-in offers.
| Item | Reported Range |
|---|---|
| Top offers for non-working phones | Up to ₹25,000 |
| Reported offer for 5G, 256GB non-working phone | Up to ₹20,000 |
| Memory chip price movement noted by traders | Increase of over 300% in some segments (reported) |
Traders in Vijayawada emphasised that valuations depend heavily on the device model and specific component health. Phones with intact motherboards, current-generation chipsets or high-capacity memory fetch higher prices, while older or extensively damaged units command lower sums.
Broader supply-side context
The local phenomenon mirrors wider market signals: manufacturers worldwide are navigating constrained supplies of memory and processors amid heightened demand from AI and data-centre applications. That has increased the value of components recovered from secondary sources, including used phones.
For Vijayawada residents, the development is likely to affect how they approach old handset disposal and trade-ins. Sellers should weigh offers carefully, compare buyers and ensure transparent assessment of internal components before completing transactions.
