Recycled mobile phones to ring up $3.5bn sales in 2007

Recycled and refurbished mobile handsets will clock up sales of over $3.5bn in 2007, market watchers predict.

According to a new study from ABI Research, shorter handset replacement periods, growing demand for low-cost handsets in emerging markets, and regulatory requirements are key drivers of the market for recycled and refurbished mobiles.

ABI Research industry analyst Shailendra Pandey said: “Recycled and refurbished handsets can help mobile operators in improving per-customer profitability by allowing better management of subscriber acquisition costs. Operators can use these handsets to address low ARPU subscribers and start generating profits on low margin accounts quickly, rather than having to wait to recover subsidies on new handsets.”

Due to the efforts of mobile operators, retailers, recycling companies, handset vendors, charities and various take-back schemes, more users have started to return their old, no longer used handsets for recycling, according to the ABI report Handset Recycling and Refurbishment.

The study also notes that handsets for refurbishment are also becoming available in increasing numbers as more and more operators now accept handset returns for full refund, or new replacement, within 14 days or a month of purchase by the customers. These returned handsets, which are relatively new, are being refurbished for resale.

ABI Research expects the market for recycled and refurbished handsets to grow steadily in the next five years, generating over $6bn in revenue in 2012. Recycled and refurbished handsets can also make the second-hand mobile phone market stronger, more legitimate, and more reliable for buyers. As these handsets are properly tested and repaired by recycling companies, buyers can be surer of their reliability. Also, most of these handsets are provided with 90 days or sometimes with full one year warranty, similar to new handsets.