Refurbished
12
Dec
2024
3
min read

Millions of hand-me-down phones this Christmas as global consumers turn to refurbished devices

As millions of consumers upgrade their phones this holiday season, a growing trend sees older devices being passed down to family members or friends. A new survey by the GSMA, which represents mobile operators worldwide, reveals that globally, one-third of people will give their old phones away, while around 75% still have at least one old phone sitting idle in a drawer.

Global shift toward used and refurbished phones

The GSMA’s survey of 10,000 consumers across 26 countries highlights the increasing adoption of refurbished and second-hand smartphones. Over 40% of mobile phones globally are given a second or third life—either being passed down to others or traded in for newer models. The used smartphone market grew by 6% in 2023, while new phone sales declined by 4%. Notably, 14% of phones in use today were purchased used or refurbished, with the UK leading the charge at 10%, far surpassing the global average of 4%.

This growth in the refurbished device market is expected to continue, outpacing sales of new smartphones in the coming years. With more people opting for sustainable choices, older models are being retained for backup purposes. Currently, an estimated 5-10 billion unused smartphones sit idle worldwide, with many consumers holding on to them for sentimental reasons or because they don’t know how to dispose of them.

Barriers to device recycling and reuse

Despite the growing trend of recycling and reusing phones, many consumers still keep their old devices. Around 27% store them due to the fear of losing precious photos and memories, while others (20%) simply don’t know what to do with them. However, cash incentives and assurances that personal data will be properly deleted are key motivators for consumers to return their devices for recycling.

Sustainability drives mobile device decisions

Sustainability is becoming a significant factor in mobile phone purchases. Nearly half of consumers (49%) said they consider sustainability “very important” when buying their next phone, with younger consumers particularly focused on the environmental impact. This growing interest in circularity is encouraging mobile operators to focus more on reuse and recycling initiatives.

The environmental impact of refurbished phones

Refurbished phones have a fraction of the environmental impact of new devices. The GSMA estimates that recycling 5 billion mobile phones could recover up to US$ 8 billion worth of critical minerals, such as gold, silver, and rare earth elements, while also supporting efforts to reduce the impact of mining on biodiversity and communities.

The GSMA’s Head of Climate Action, Steven Moore, highlighted that mobile operators are increasingly moving toward a circular economy, with 16 operators already signing up for GSMA’s circularity targets. Countries like Australia have implemented successful recycling schemes, setting a global example with the highest recycling rates for mobile phones.

The road ahead for mobile device reuse and recycling

As the demand for more sustainable and circular mobile devices continues to grow, opportunities for innovation are plentiful. Reuse and recycling are crucial for achieving the mobile industry’s 2050 Net Zero goal, and manufacturers and operators are recognizing the need for secure and responsible methods of device trade-in. While there are still challenges, particularly around data privacy and consumer reluctance to part with older devices, the global shift toward mobile device circularity is gaining momentum.

Interested in the global market for used electronics?

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