AI Memory Shortage Turns Broken Smartphones Into Valuable Parts Stock

Marketplace figures from B-Stock, a large business-to-business platform for used smartphones, show pricing for Apple and Samsung devices rose in the second quarter of 2026 compared with the prior two quarters. Grade D handsets, the lowest condition tier, made up the bulk of units sold last year, with millions changing hands through the platform.

In the first half of 2026, mid-tier C-condition phones overtook the lowest tier by volume, accounting for 37.8% of sales versus 31.6% for the bottom grade. The iPhone 17 Pro Max fetched the strongest average price among Apple models, reaching $940 across all condition levels during the quarter. Samsung’s top-selling models were the S23 Ultra, the S22 Ultra and the S24 Ultra, with the S22 Ultra pushing the older Z Fold5 out of second place. After the Galaxy S26 launched, prices for previous-generation Samsung flagships climbed as well, with a well-kept S23 Ultra reaching $425 in June, its strongest month of the year.

B-Stock cautioned against assuming shoppers are simply rushing to dump unwanted hardware. The company points out that people are keeping their phones for extended periods, a pattern that itself drives up the volume of low-grade listings as devices age. Manufacturers are not yet routinely pulling memory chips from damaged phones to install in new products, since testing, compatibility and reliability checks complicate that approach. According to the company, the economics of recovering usable components are shifting as memory prices climb, making it worthwhile to salvage parts that once were not worth the labor involved.

Displays, camera assemblies, batteries, charging ports, housings, speakers, cables and circuit boards can all retain value even when a phone itself is beyond repair. A single low-grade device does not necessarily mean every part inside it shares that same poor rating. A phone traded in after four or more years often fails battery health testing alone, which is enough to place it in the bottom tier under standard platform rules.

The current trend feels less like a sudden environmental awakening and more like a market correction. Consumers are not necessarily recycling out of ecological conviction, and retailers are sweetening trade-in offers to keep the supply of parts flowing. Whether the shift meaningfully reduces electronic waste, or simply redirects it toward a more profitable pipeline, remains an open question worth watching.

Editor's Summary

AI-driven memory chip scarcity is raising the value of used and broken smartphones, according to TechRadar, with B-Stock data showing higher Apple and Samsung prices and more mid-tier sales in 2026. The shift is prompting more component salvage and trade-in offers, while its effect on electronic waste remains unclear.