Refurbished
17
Jan
2025
2
min read

Canalys: European regulations raise questions about the future of refurbished smartphones

The European smartphone market is bracing for disruption as two European Commission directives take effect on June 20, 2025. These regulations, focused on energy labeling and ecodesign, aim to make smartphones more durable, repairable, and transparent in their environmental impact. “While the intent is to promote sustainability and reduce e-waste, the implications for the refurbished smartphone market are complex and multifaceted”, according to analysts from Canalys.

Repairability improvements could boost refurbishment

The new ecodesign rules mandate that manufacturers provide spare parts and repair information for at least seven years after devices are discontinued. This extended availability of components, coupled with requirements for long-term software updates, could make it easier for refurbished devices to remain functional and competitive in the secondary market. Additionally, increased repairability standards may enable repair specialists to restore smartphones to a higher quality, offering consumers more reliable refurbished options.

Longer lifespans may impact residual value

On the flip side, the same regulations that extend the usable life of smartphones could also reduce their residual value. Devices designed to last five to seven years may retain less appeal in the refurbished market due to their age and generational obsolescence by the time they are resold. While the directive’s focus on durability is a positive step for environmental sustainability, it might inadvertently limit the marketability of older refurbished devices, making it harder to attract buyers.

Balancing environmental goals and market dynamics

As Europe pushes for a more sustainable tech industry, the refurbished smartphone market finds itself at a crossroads. The directives are a double-edged sword: they address key barriers to refurbishment but may alter market dynamics in ways that challenge existing business models. How the industry adapts to these changes will define its role in a circular economy.

 

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