Display panel shipments into the refurbished smartphone market recorded rapid growth in the first quarter of 2026, as panel makers redirected excess capacity away from slowing demand among smartphone manufacturers, according to research firm Omdia.

Rising memory prices have prompted smartphone manufacturers to significantly reduce production plans, with Omdia forecasting that demand for displays used in new smartphones will decline by 12 per cent in 2026.

At the same time, display panel shipments into the refurbished smartphone market continue to accelerate as suppliers actively seek alternative sources of demand.

In the first quarter of 2026, display panel shipments into the refurbished smartphone market increased 20 per cent year on year to 298 million units.

This figure surpassed display panel shipments to smartphone manufacturers, which totalled 289 million units during the exact same period.

The refurbished smartphone ecosystem encompasses display panels used for consumer repairs, the professional refurbishment of recycled smartphones, and aftermarket replacement parts.

While the complexity of the supply chain makes it difficult to measure final end demand precisely, the growth in panel shipments clearly reflects the rapid expansion of the refurbishment market.

The trend is being driven by both weaker demand for new smartphones and structural factors within the display industry itself.

Panel manufacturing requires significant long-term investment, making it difficult for suppliers to quickly reduce production capacity when demand falls.

Instead, panel makers are increasingly supplying displays into the refurbishment market to maintain factory utilisation, absorb fixed costs, and reduce operational pressure.

“For panel makers, the refurbishment market acts like a reservoir that helps absorb fluctuations in demand from smartphone manufacturers, although no one knows exactly how large that reservoir is,” said Omdia senior principal analyst Joy Guo.

“Higher memory prices have significantly reduced demand for both LCD and OLED displays from smartphone manufacturers, leading suppliers to redirect more panels into the refurbishment market,” Guo added.

“As a result, higher-quality OLED displays are becoming increasingly available for refurbished smartphones,” Guo noted.

The shift is particularly evident in OLED panels across the sector.

In the first quarter 2026, OLED accounted for 7 per cent of display panel shipments into the refurbished smartphone market, rising from 2 per cent a year earlier.

This marked increase highlights the growing availability of premium replacement displays within the global refurbishment ecosystem.