How Are Refurbished and Used Mobile Phones Reshaping the Smartphone Industry with Sustainable Solutions?

Highlights:

• A brief on refurbished and used mobile phones
• Factors boosting the demand for such smartphones
• Key initiatives taken by leading players in the sector

In the past few years, refurbished smartphones have gained huge popularity these days due to the rise of trusted resellers in the smartphone industry. These smartphones have undergone repair and restoration processes to check various phone parts and replace the damaged ones. After confirming the condition of these phones, leading brands provide a guarantee, adding a layer of trust to the purchase of customers.

On the other hand, used phones are pre-owned devices whose conditions vary significantly depending on the usage of the user. In these phones, key components such as battery, camera, and motherboard are replaced with non-original parts, and they rarely offer any warranty period or accessories.

Reasons why refurbished and used phones are reshaping the smartphone industry

The refurbished and used mobile phones industry has experienced significant growth due to their notable benefits. Purchasing a refurbished phone significantly reduces electronic waste by keeping functional devices out of landfills. This choice also extends the use of rare earth elements essential for phone functionality, minimizing the environmental impact of mining. With the rise of these phones, consumers contribute to a more sustainable future by prolonging device life and conserving valuable resources.

Moreover, opting for refurbished phones significantly reduces greenhouse gas emissions, as the production of a new device generates about 85 kilograms of CO2 equivalent within its first year. Individuals help minimize these emissions by choosing refurbished phones, reducing the environmental impact associated with manufacturing new smartphones.

On the other hand, while purchasing a refurbished phone from the manufacturer, individuals typically save between 15% and 30% of their total purchase amount compared to a new model, depending on the brand. Buying from other marketplaces yields even higher savings, but it often comes with increased risks. However, these risks are minimized with the knowledge of what to look for before making a purchase.

Furthermore, when purchasing a refurbished phone from manufacturers, individuals usually receive a 1-year limited warranty, similar to new models. Nowadays, online retailers offer warranties ranging from 90 days to 1 year based on the phone's condition. Users should check seller reviews and ensure they are shopping from sections with robust guarantees, like Amazon Renewed or eBay's Refurbished program, for optimal protection.

Alchemy’s strategic move to promote circular economy in mobile technology

In September 2023, Alchemy, a global leader in the circular technology market announced its acquisition of numobile, a leading Australian mobile virtual network operator (MNVO) and Device-as-a-Service (DaaS) fintech. This acquisition supported the vision of Alchemy to expand its innovative range of services for circular technology. Furthermore, it has enabled Alchemy to integrate numobile’s “DaaS” platform into its portfolio to offer businesses refreshed technology through subscription plans across the USA, UK, EU, and APAC. Through this initiative, Alchemy aimed to provide a new life to used consumer electronic devices while saving their consumers money.

Dipli and IPSOS joined hands to drive the refurbished industry with sustainable mobile solutions

On the other hand, with the rising environmental consciousness, the European mobile phone industry has undergone a transformative transition toward sustainability. For instance, in November 2024, Dipli, a French-based consumer electronics supply chain management company conducted a comprehensive study in collaboration with IPSOS, one of the largest market research companies. Through this acquisition, Dipli aimed to examine consumer behaviors regarding the resale of old phones and the demand for second-hand devices. These findings are expected to reveal a huge opportunity for growth in the refurbished market. Under this acquisition, more than eight billion phones are circulated globally, highlighting the urgent need for effective solutions to manage electronic waste. Also, Dipli envisioned enhancing the second-hand experience for end-users by joining hands with major telecommunication firms and OEMs, such as Orange.

Final words

The refurbished and used mobile phones sector is rapidly expanding due to the quality, cost, and reliability of these smartphones. Consumers are highly benefited from these high-quality smartphones without the stress of the premium price tag associated with new models. Moreover, with rising sustainability concerns and the expansion of e-commerce businesses, access to refurbished phones is expected to increase in the forthcoming years.

To get more insights into the evolving dynamics of the refurbished and used mobile phones industry, get in touch with our industry analysts today!

Related Post