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Over recent years, the demand for artificial intelligence has skyrocketed \u2013 impacting everything from text and image generation to agentic forecasting. However, over the past few months, the surge in popularity for AI has begun to reshape an unlikely corner of the retail market.<\/p>\n
As technology companies race to build AI data centres, the industry has found that the memory chips needed to power them are becoming increasingly scarce, driving up the cost of everything from laptops to tablets.<\/p>\n
However, this challenge for tech manufacturers has presented an opportunity for the second-hand markets, and is already changing how consumers shop, with refurbished technology retailers reporting a rise in demand as buyers look for alternatives to increasingly expensive new devices.<\/p>\n
Back Market, one of Europe\u2019s largest refurbished electronics marketplaces, says the shift is already well under way. Following Apple\u2019s latest UK price increases, sales of refurbished MacBooks on its platform jumped 43 per cent week on week, while refurbished iPad sales rose 36 per cent.<\/p>\n
For Back Market UK general manager Katy Medlock the changes go beyond consumers simply looking for a bargain.<\/p>\n
\u201cEvery device now is competing with AI data centres for the use of chips,\u201d she says. \u201cAs the price of new devices is going up, we\u2019re seeing more consumers getting smarter about these price rises.<\/p>\n
\u201cInstead of just buying a brand-new product, they can buy a better-quality device that matches more of their needs when they\u2019re buying refurbished.\u201d<\/p>\n
While memory chip shortages may be ramping up the trend, the move towards refurbished tech already reflects a broader change already taking place in the UK.<\/p>\n
Data from Back Market\u2019s latest Downgrade Now<\/em> report found refurbished purchases grew by 37 per cent across the UK during 2025, while 40 per cent of buyers were purchasing a refurbished device for the first time.<\/p>\n And, despite London\u2019s reputation as the country\u2019s technology hub, 85 per cent of refurbished device sales took place outside the capital, suggesting demand has become a nationwide trend rather than a niche market.<\/p>\n Much of the conversation around AI has focused on Nvidia\u2019s powerful graphics processors consultancy firm Newton board member capabilities and AI Ben Grinell believes the bigger story is hidden inside them.<\/p>\n \u201cIt\u2019s memory rather than processing chips that\u2019s the problem, and I think a lot of people are confused by that,\u201d he says.<\/p>\n The world\u2019s three dominant memory manufacturers have increasingly redirected production towards high-bandwidth memory (HBM), the specialist chips used inside AI servers. For chipmakers, the economics are straightforward.<\/p>\n \u201cThe margins are about 30 per cent on AI memory, rather than commoditised memory where the margins are probably 10%,\u201d Grinnell says. \u201cYou\u2019ve got a choice: I can sell to AI data centres or I can sell to retail. Then you\u2019re going to go with the bigger profit.\u201d<\/p>\n Unlike many supply chain disruptions, there is no quick fix. Building a new semiconductor fabrication plant costs billions and can take three or four years before it begins producing chips. Even then, manufacturers need years to improve yields to the standard expected by companies such as Apple.<\/p>\n The effect is already feeding through to prices. Grinnell estimates the cost of DRAM memory has risen by around 90 per cent in the past seven to eight months, compared with inflation of roughly 4 per cent.<\/p>\n \u201cI think if I look at the price of DRAM, it\u2019s probably gone up about 90 per cent in the last seven or eight months,\u201d he says. \u201cInflation\u2019s really a minimal part of that.\u201d<\/p>\n Technology manufacturers have begun acknowledging the pressure. Apple recently increased prices on several products, including the entry-level MacBook, while Microsoft\u2019s Xbox price rises earlier this year reflected similar cost pressures across consumer electronics. Analysts have also pointed to rising memory prices as a growing challenge for device manufacturers.<\/p>\n Grinnell argues the pressure is unlikely to ease soon.<\/p>\n \u201cSome people are saying it\u2019s a crunch until mid-2027. I think that\u2019s a bit naive,\u201d he says. \u201cThe demand for data centres is going to go up and up.\u201d<\/p>\n The market is also highly concentrated. Three established manufacturers dominate global memory production, making it difficult for retailers and smaller technology companies to negotiate favourable supply agreements.<\/p>\n \u201cThe people who are committing to long-term deals with high volumes over several years are getting the supply,\u201d Grinnell says. \u201cThe smaller players are missing out.\u201d<\/p>\n Far from representing a broken supply chain, he argues the system is operating exactly as expected.<\/p>\n \u201cIt\u2019s not a supply chain issue. The supply chain is absolutely working perfectly. It\u2019s just all being diverted to a higher-profit centre.\u201d<\/p>\n As prices rise, retailers are increasingly looking to trade-ins and refurbished devices to fill the gap.<\/p>\n Grinnell believes stronger trade-in offers will become more common as retailers compete to secure stock.<\/p>\n \u201cI think the trade-in deals will get better,\u201d he says. \u201cThe retailers that establish a really good trade-in deal are going to fare better because they\u2019re going to have more stock available for their customers.\u201d<\/p>\n Back Market says shoppers are already changing how they think about upgrades.<\/p>\n \u201cThe question consumers are asking isn\u2019t just, \u2018Can I afford to buy new?’\u201d says Medlock. \u201c\u2018Can I get a better device for the money I would have spent buying new?’\u201d<\/p>\n That shift is helping refurbished move beyond its traditional audience of bargain hunters and environmentally conscious consumers.<\/p>\n Back Market\u2019s research found that 84 per cent of UK consumers now understand what refurbished technology is, although many still confuse it with buying second-hand directly from another consumer. The distinction has become central to the company\u2019s latest advertising campaign, which focuses on trust rather than price.<\/p>\n \u201cWe\u2019ve really wrapped that layer of trust around it,\u201d Medlock says. \u201cPeople don\u2019t always understand the difference between second-hand and refurbished, but the difference is huge.\u201d<\/p>\n Unlike peer-to-peer marketplaces, refurbished devices are professionally tested, repaired where necessary, data-wiped and sold with warranties and return policies.<\/p>\n The customer base is changing too. Families buying devices for children, businesses looking to meet sustainability targets and consumers building what Medlock describes as \u201cfull Apple ecosystems\u201d through refurbished purchases are becoming increasingly common<\/p>\n Smartphones remain the biggest category, but demand for MacBooks, iPads and premium Apple products continues to grow.<\/p>\n There are limits to how far the refurbished market can expand. Unlike new devices, the supply of refurbished products depends on consumers trading in old technology.<\/p>\n Medlock acknowledges that challenge but believes there is still considerable room for growth.<\/p>\n \u201cThe average Brit has about \u00a34000 worth of devices stashed away in drawers,\u201d she says. \u201cWhat we really need people to be doing is trading those devices in.\u201d<\/p>\n Grinnell agrees refurbished devices will become more important but warns they are unlikely to solve the industry\u2019s wider memory shortage.<\/p>\n \u201cI think we\u2019re going to see a lot more refurbished phones,\u201d he says. \u201cBut that market\u2019s not going to solve the problem because that market\u2019s quite small. Once you\u2019ve got that market going, it saturates.\u201d<\/p>\n Instead, he expects consumers to keep devices for longer, become comfortable being \u201ca model behind\u201d and think more carefully before upgrading.<\/p>\n For retailers, that means trade-in programmes and refurbished ranges are likely to become increasingly valuable as consumers adjust to a market where new technology is no longer getting cheaper.<\/p>\n The AI boom may be fuelling the world\u2019s data centres and causing shortages of brand-new tech, but by doing so, giving a second life to millions of devices that might once have been left forgotten in a drawer.<\/p>\nWhy AI is driving up prices of new tech?<\/h3>\n
A new life for refurbished technology?<\/h3>\n