Old Devices, New Lease of Life
The holiday season is a time for connection with loved ones whether near or far, made seamless by smartphones. But as we embrace the festivities, it’s worth asking: are we making the most of our devices, or letting unused phones gather dust?
We recently completed a survey of over 10,000 mobile phone users in 26 countries – representing 70% of the global population – to understand how people are now buying, using, repairing, and disposing of their mobile phones. The findings shine a light on how people are valuing their phones, indicating how the industry may need to respond to shifting needs.
Dormant Phones: A Hidden Opportunity
We found that 75% of consumers have at least one old handset sitting unused at home, while 20% of consumers have at least three phones at home. The reasons vary widely between markets, although 25% of all consumers choose to keep their phone because there is data that they want to keep and a further fifth of consumers hold on to their old device, simply because they don’t know what to do with it.
In India and China alone, there could be more than two billion dormant phones in each country. Globally, the number could reach around 10 billion devices. These idle devices represent not just an environmental challenge, they could help connect those who are unconnected.
Around 40% of the global population living within mobile broadband coverage still aren’t using it. Affordability, particularly of internet-enabled handsets, is the greatest barrier to mobile internet adoption.
Programmes like the one Virgin Media O2 ran with their partners in the UK – cleaning and rehoming over 20,000 unused smartphones, gifting them to people in need – highlight the potential for change. The industry can drive sustainability while connecting underserved communities by tapping into this vast inventory of unused devices. However, more data is needed to understand the opportunity of re-using good pre-owned devices to connect the unconnected at scale.
Consumer Trends: The Rise of Refurbished
In total, a third of mobile phone users have kept their previous phone as a backup. Encouragingly, however, more phones are already seeing a second or third life, with over 30% of phone users giving their old phones to a family member or friend, and nearly 20% trading in or selling their used devices.
We know that reusing or refurbishing a phone can reduce the environmental impact of a new phone by around 90%. The refurbished device market is thriving, with over 200 million used smartphones sold in 2023 – a 6% increase from 2022. Meanwhile, new device sales declined by 4%.
With a growing interest in refurbished devices, what will it take for more consumers to trade in or gift their unused devices, what can incentivise them to purchase refurbished and what should mobile network operators do in response to growth in the secondary market for devices?
Growing Interest in Greener Phones
As well as the significant reduction in carbon and climate impacts, purchasing refurbished means reducing the environmental impacts from mining critical minerals including rare earths, cobalt, copper, silver and gold, that are needed to manufacture new phones.
Our survey data shows that consumers value more environmentally friendly phones – especially younger users, with over 55% between 18 and 34 considering sustainability as a very important factor in their purchase decision for their next phone. Additionally, 70% of consumers we surveyed are willing to pay a cost premium for a greener handset.
Consumers are also increasingly interested in refurbished phones. Over 45% of consumers surveyed are likely or very likely to consider buying a refurbished phone for their next purchase. In India, over 20% were “very likely” to consider buying a refurbished phone – by far the highest share globally.
Unlocking Consumer Participation
Despite growing interest, unlocking the full potential of refurbished devices requires action by mobile network operators and other device retailers. They need to encourage consumers to trade in their unused devices so they can be given a second life. Our research points to three key motivators for consumers to trade in old devices: convenience, cash incentives, and data privacy
Overall, 34% of consumers considered convenience important, with some markets like Australia rating it almost as important as receiving cash. For Nigerian consumers, convenience is more important than cash. In 16 of the 26 markets we surveyed, just over 40% of consumers would be more willing to send their devices in for reuse or recycling if they could get cash for it, with the highest rate in Sweden of 60%.
An equally important factor for consumers is data privacy. In total, 42% of consumers would be willing to send their devices in for reuse or recycling if they knew their data would be deleted properly, including over half of consumers in China and Saudi Arabia. Educating consumers on the different methods they can use to back up their data (whether the phone is fully functional or not) is a clear enabler for greater repair and refurbishment.
Reusing and Recycling Phones
Gifting a mobile device to a friend or family member remains a common trend in many countries. On average, nearly a third of consumers we surveyed pass their devices on this way. For consumers in the Philippines, the survey suggested there is a significant amount of sentimental value attached to why they might not hand a mobile device in for reuse.
An additional way to give a device a second life is through trade in schemes. 10% of consumers surveyed chose to trade in their device when they purchased a new one. In the United States, this rises to almost 20% of consumers. Interestingly, nearly half of consumers in the United States also purchased their primary phone from their mobile operator or their cell service provider, almost double the global average. This pattern of high trade in and a high rate of device purchasing from mobile network operators is mirrored in Japan and South Korea.
For phones that reach the end of life, there are two options: recycling or disposal. On average, 6% of consumers surveyed chose to recycle their old handset while 4% threw their devices into general waste. Outside of Europe, China and Australia have the highest device recycling rates, compared to the number of devices that end up in landfill. In all European countries we surveyed rates of recycling mobile devices outnumber the phones that go to landfill, likely as a result of e-waste regulations, higher consumer awareness, and easier access to recycling options. The same is true in Australia, with the highest rate of device recycling on replacement at 13%, more than double the global average.
Australia’s success is no surprise as the country is home to Mobile Muster, a nationwide mobile phone recycling programme, funded voluntarily by mobile network operators, retailers and other organisations. Importantly, it makes it incredibly easy for customers to send in their old devices, accepting all brands and types of mobile phones, through a network of 3000 public drop-off points across the country. By making the experience as simple as possible, Mobile Muster encouraged Australians to part with 109 tonnes of unwanted mobile devices in FY23/24, recovering more than 95% of the materials to be reused.
Not Compromising On Quality
For mobile network operators looking to reduce the environmental impact of device sales, it is important to understand the factors that consumers are prioritising, as they weigh up the benefits of choosing a pre-owned device. As the secondary device market grows, quality assurance is paramount, particularly in emerging markets. Our survey found over 90% of consumers prioritised functionality, with many expecting refurbished phones to perform as well as new ones. Cosmetic appeal also matters—devices with visible damage are less likely to find buyers.
Savings, however, remain a compelling draw with nearly half of consumers considering the potential savings from buying refurbished to be a very important benefit. In fact, for a relatively recent model (released within the past two years) a quarter of consumers expect to save at least 20-30% on the cost of a refurbished phone, compared to the price of a new one. A further fifth of consumers expect to save at least 10-20%. This can be a useful guide when targeting marketing efforts.
Building a Circular Economy
Poor battery life and poor performance were the most important factors that drove consumers we surveyed to replace their previous phones. This is especially true for Japanese consumers, who keep their phones for an average of around four years, the longest of any market surveyed. Over half of consumers surveyed in Japan cite poor battery life as the main reason for replacement. Older consumers tended to also use devices for longer, with those over 65 using their phones for a year longer than those under 35.
Although demographics play a role in the length of time consumers keep their devices, manufacturers hold the key to longer device lifetimes. Designing in repairability and developing software updates to remain compatible with older handsets is crucial to increasing the useful lifetime of mobile devices. By working with Google, Deutsche Telekom is already demonstrating the art of the possible. Their own T Phone 2 is built on eco-design principles, achieving an Eco Rating score of 88/100. This is a reflection of the environmental impact of the device, from production to disposal.
Mobile network operators are already leading with an ambition to improve the circularity of the device value chain, through two industry targets aimed at increasing reuse and refurbishment. By 2030, operators have committed to increasing the number of used mobile devices collected through their own take-back schemes to at least 20% of the number of new mobile devices distributed directly to customers. By the same year, they have also set the ambition to repair, reuse, or recycle 100% of used mobile devices collected through operator take-back schemes.
From national nuances to more broadly applicable perspectives, understanding consumer behaviour for taking back used devices and buying refurbished ones is key to realising these targets, reducing environmental impact and potentially connecting the unconnected.
Better for Planet and Pocket
From repairing devices to gifting devices to loved ones or participating in trade-in programs, consumers play a vital role in driving sustainability. This holiday season let’s rethink what it means to give. By repairing, trading in, or rehoming unused phones, we can extend the life of devices and reduce environmental impact—making every connection a greener one.
– To explore the results of the survey in more detail see our recently launched dashboard.
– To find out what a circular economy for mobile devices looks like see our strategy paper