Sales of used smartphones in Japan are expected to hit an all-time high in fiscal 2024, as rising prices of new devices drive consumers toward more affordable options, a Tokyo-based research company said.

Sales of used smartphones are projected to climb 15.5 percent from the previous year to 3.15 million units, marking a record high for the sixth consecutive year, also lifted by purchases by foreign visitors, MM Research Institute Ltd.

Sales are estimated to further expand in the coming years, possibly hitting 4.38 million units in fiscal 2028, on the back of elevated prices of new devices due to the yen's depreciation and higher material costs, the research firm said.

Although new smartphone models, including Apple Inc.'s latest iPhone released in September, have attracted attention, many consumers seem to find it difficult to loosen their purse strings, said Hideaki Yokota, vice president of MM Research.

"People are becoming more comfortable with secondhand products, as used smartphones can be utilized without inconvenience," Yokota said.

Visitors from China and other countries are also contributing to the increasing sales, snapping up used iPhones in good condition, the research company said.

Reflecting their popularity, the share of used smartphones in Japan's overall smartphone sales is expected to grow from 9.7 percent in fiscal 2023 to 10.8 percent this fiscal year.

Belong Inc., which specializes in used smartphone sales, said corporate demand is also on the rise, as digital devices are now used for inventory management in restaurants and for electronic medical records in the health care sector.

To support the secondhand smartphone market, an expert panel of the communication ministry proposed in September that telecom carriers should be basically banned from restricting the use of such devices because of previous owners' unpaid bills.