Market
04
Jul
2025
3
min read

Omdia: new EU regulations pressure smartphone vendors but support sustainability goals

On 20 June 2025, the European Union’s Eco-Design and Energy Labelling regulation officially came into force, aiming to extend smartphone lifespans and lower environmental impact. Originally approved in 2023, the legislation targets how smartphones are manufactured, used, and discarded, compelling vendors to meet new standards for durability, repairability, and software support, according to a study from Omdia.

Smartphone energy labels introduced

Similar to existing labels for home appliances, the EU's new energy label for smartphones displays ratings on battery life, durability, repairability, and energy efficiency. The measure could cut electricity use from charging by 25% by 2030. However, since the manufacturing stage accounts for most of a device's carbon footprint, the regulation also focuses on prolonging device use.

Minimum five-year software support

A key requirement mandates that smartphones receive five years of operating system and security updates, starting from the last unit sold into the market. Batteries must retain 80% of their capacity after 800 cycles, and spare parts like displays and charging ports must remain available for at least seven years.

Design changes to meet new rules

The regulation pushes vendors to make significant design changes. Following the USB-C mandate, manufacturers now face added costs for longer software support, especially in the low-end segment. To cope, companies may reduce the number of models they release and simplify their component portfolios.

Impact on smartphone sales volumes

Extending device lifespans means slower replacement cycles. Omdia investigated how much of produced smartphones in 2024 were actually sold in Europe. A shift from three to four years in average ownership could cut EU shipments by 25%, or 26 million units annually. Vendors such as HMD Global and TCL, which rely heavily on the EU market, are expected to feel this most.

Second-hand market will benefit

With stricter repair and durability standards, more devices will be refurbished and reused. This shift supports a growing second-hand smartphone market, where products remain in circulation for longer and waste is reduced.

Circular economy gains ground

More EU policies are expected. By December 2026, smartphones will require user-replaceable batteries. While feasible in budget models like those from Fairphone or HMD Global, premium devices may struggle with the design compromises needed. Still, the shift aligns with the EU’s broader push for a circular economy.

A necessary but difficult transition

The regulations will help cut manufacturing emissions, which contribute about 65kg CO2e per phone, and reduce mining impacts and e-waste. Yet this transformation will be difficult for vendors who must shift from shipment-based revenues to services, advertising, or software as growth drivers.

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