Refurbished and Hand-Me-Down Phones Are on the Rise: Here’s Why

A growing global trend shows that millions of mobile phones will receive ‘second lives’ this holiday season as tech-savvy consumers upgrade to the latest devices and hand down their old phones to family and friends. A new GSMA survey, encompassing 10,000 consumers across 26 countries, reveals that over 40% of mobile phones are reused, while 75% of consumers still have at least one unused phone sitting idle in a drawer.

The Rise of ‘Hand-Me-Down’ Phones

This Christmas, many family members will receive ‘pre-loved’ devices as younger consumers opt to upgrade their smartphones. Globally, a third of consumers pass on their older phones within their social circles. In the UK, nearly 10% of consumers buy refurbished phones, doubling the global average of 4%. The market for used and refurbished smartphones grew by 6% in 2023, outpacing the 4% decline in new phone sales.

This growth trend is expected to continue, demonstrating a shift towards sustainability and cost-conscious buying. In Kenya, this trend mirrors insights we explored in the article, “Refurb Market on the Rise, Thanks to Expensive Cost of New Smartphones,” highlighting how the high cost of new devices is driving demand for refurbished options.

The Problem of Dormant Devices

Despite the growing reuse trend, an estimated 5-10 billion unused phones remain dormant worldwide. Around 27% of respondents cited concerns over losing stored photos and memories as a reason for keeping old devices, while 20% admitted they didn’t know how to recycle or repurpose them. Additionally, many consumers hold on to these devices as backups, contributing to the growing number of idle phones.

Consumer Replacement Habits

The survey indicates that most consumers replace their phones every three years, driven primarily by declining battery performance (90%) and slower device speeds (87%). However, half of the respondents admitted they would replace their phones simply to own the latest model. Interestingly, older users tend to hold onto their phones longer, with over 40% of seniors using their devices for more than three years.

A Sustainable Shift in Consumer Mindsets

Sustainability is becoming a key consideration for consumers. Nearly half (49%) of respondents said that sustainability factors heavily into their next phone purchase decision. Younger consumers are particularly drawn to environmentally friendly and circular economy practices, signaling an increased demand for refurbished and sustainably manufactured phones.

Environmental and Economic Benefits of Recycling

The GSMA emphasizes that recycling dormant phones could significantly benefit both the environment and the economy. Proper recycling of just 5 billion devices could recover $8 billion worth of materials, including gold, palladium, silver, copper, and rare earth elements. Additionally, the cobalt extracted could power 10 million electric car batteries, reducing the need for harmful mining operations. A refurbished phone has just one-tenth the environmental impact of a newly manufactured device, highlighting the importance of reuse and recycling.

Barriers to Recycling

Despite the benefits, several barriers prevent widespread recycling. Privacy concerns remain a major issue, as consumers worry about securely erasing personal data from their devices. Additionally, sentimental attachment to stored memories and a lack of convenient recycling options deter many from handing in their old phones.

Global Efforts to Promote Circularity

Countries like Australia are leading the way with government-led recycling initiatives, achieving the world’s highest mobile phone recycling rates. Similarly, 16 mobile operators have committed to the GSMA’s targets on circularity for mobile devices, and the newly launched GSMA Equipment Marketplace is helping operators reuse material-intensive network equipment.

Opportunities for Innovation

Steven Moore, Head of Climate Action at the GSMA, stated, “This extensive survey shines a light on how many of us around the world are more aware of the environmental impact of our phones, want to use them for longer, but also want secure and easy ways to trade them in responsibly. With these markets only expected to grow, this presents many opportunities for companies to innovate to serve this demand.”

A Call to Action for the Industry

The GSMA survey’s early findings, set to be fully released at the Mobile World Congress (MWC) Barcelona in March, highlight the need for industry innovation. Mobile operators are focusing on reducing environmental impacts while addressing consumer concerns about privacy and convenience. The push for a circular economy, bolstered by consumer interest and global initiatives, has the potential to drive significant change in the mobile industry.

By embracing reuse and recycling, the mobile industry not only supports global sustainability goals but also taps into a growing market for second-hand devices. This holiday season, the tradition of passing down ‘hand-me-down’ phones underscores the growing awareness of the need for a more sustainable future in mobile technology.