The GSMA report “Rethinking Mobile Phones: The business case for circularity,” published in February 2025, highlights the urgent need for a circular economy in the mobile phone industry. In 2024 alone, over 1.2 billion new smartphones were sold, resulting in more than 60 million tons of CO2 emissions from production. The traditional linear model (take-make-dispose) is no longer sustainable, leading to severe environmental and social consequences. It good to see that GSMA, global organization of mobile phone operator, is focusing more and more on the secondary mobile market. Pushing members to increase their trade-in attach rate and promote sales of used devices.
Consumers drive demand for circularity
Consumers are holding onto their devices longer, with the average upgrade cycle now at 3.5 years. Additionally, around 70% of consumers are willing to pay a premium for environmentally friendly phones. The second-hand market is thriving, with sales of used and refurbished devices increasing by 15% between 2021 and 2023, while new smartphone sales declined by the same percentage.
Regulations push the industry forward
Governments, particularly in the EU, are implementing regulations to encourage circularity. From June 2025, new EU rules will enforce repairability, reusability, durability, recycling, and transparency in the mobile phone market. These policies aim to reduce e-waste and extend product lifecycles.
Circular business models offer new opportunities
Companies adopting circular business models benefit from cost savings, new revenue streams, improved brand reputation, and a more resilient supply chain. The global refurbished and repair market is projected to exceed € 137 billion by 2027. Using recycled materials and renewable energy can also reduce dependence on critical minerals and stabilize supply chain risks.
Environmental and social benefits
Circularity supports climate goals, reduces e-waste, promotes digital inclusion, and boosts local economies. Repairing and refurbishing devices generate significantly lower CO2 emissions compared to manufacturing new ones. Expanding circular initiatives can create jobs in repair, refurbishment, and recycling while minimizing resource depletion.
Challenges remain for industry adoption
Despite clear benefits, mobile operators face financial barriers such as high investment costs and short-term revenue pressures. Consumer awareness and perception of circular products remain challenges, as does inconsistent global regulation. Overcoming these barriers requires industry-wide collaboration.
Collaboration is key to success
Manufacturers, operators, refurbishers, recyclers, consumers, and governments must work together to drive circularity. Joint efforts in device take-back programs, recycled materials usage, repair facilitation, and consumer education will be essential. Governments play a crucial role in setting policies that encourage circular practices.
Circular business models for mobile operators
The report outlines various successful circular strategies, including repair programs, trade-in and buyback initiatives, refurbishment, leasing, and e-waste management. Over 90% of surveyed mobile operators have already adopted at least one circular model.
Measuring progress through key indicators
Setting clear goals and metrics is vital for tracking circularity progress. The GSMA has developed standardized ESG metrics for the mobile industry, while the Circular Transition Indicators (CTI) provide a flexible framework for measuring circular performance.
A long-term vision for circularity
The GSMA and mobile operators have established a vision for 2050: devices with maximum longevity, made from 100% recyclable and recycled content, powered by renewable energy, and ensuring that no device ends up as waste. Transitioning to a circular economy is not only an environmental necessity but also a strategic opportunity for businesses to innovate, create value, and build a more resilient future.
Market
Trade-in
Repair
Refurbishing
