File photo of someone using a mobile phone
Fast-changing consumer attitudes towards repair and reuse of mobile phones are driving a rapidly growing market for ‘circular’ devices and services which could exceed $150bn by 2027, according to a new report published by GSMA.
The GSMA’s ‘Rethinking Mobile Phones: the Business Case for Circularity’ report which surveyed more than 10,000 mobile phone users across 26 countries worldwide, showed that evolving consumer attitudes, regulatory changes and the growing impacts of e-waste are converging to challenge the traditional linear business model of the mobile phone industry.
The report said more than 70 per cent of consumers surveyed globally stated that they would be prepared to spend more on environmentally friendly phones.
It highlighted the growing opportunity for the mobile industry to embrace circularity, not simply for positive environmental reasons, but also commercial benefits.
Within the report, a survey of 31 operators from around the world highlighted how they were embracing circular business models.
About 90 per cent of operators surveyed already operated at least one circular business model, with refurbishment and e-waste management being the most popular.
However, respondents recognised huge potential in scaling up further; 80% with refurb programmes thought ‘a lot more’ could be done.
It said this could include developing leasing, renewal and upgrade propositions which would tap into new revenue streams, increase customer loyalty, and provide quality assurance.
Mr Steven Moore, Head of Climate Action, GSMA, said fast-growing consumer demand for green and refurbished phones, as well as repair services, was a fantastic business opportunity for the mobile industry.
He said unlocking this requires strong collaboration across the value chain, helped by enabling policies and incentives from governments, bringing together manufacturers, mobile operators, refurbishers, repairers, and recyclers to address key barriers to unlock new revenue streams and future-proof business models.
He said sales of new mobiles had slowed in recent years, with consumers holding on to devices for a year longer than a decade ago, and many turning into a rapidly growing market for used and refurbished phones.
This shift reflects growing consumer interest in refurbished phones to save money, get a higher-end device, and minimise environmental impacts.
About 85 per cent of consumers globally consider sustainability to be important when purchasing a device, exceeding other criteria such as device aesthetics (73 per cent) and AI capabilities (67 per cent).
One in six phones sold in France last year was refurbished, while over half of Indian consumers surveyed were likely to consider refurbished for their next phone purchase.
Two-thirds of consumers surveyed globally reported needing to have their current or previous phone repaired.
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