From skepticism to sustainability: changing perceptions of refurbished phones

Users using smartphones
Både Samsung og Apple har hatt et sterkt kvartal, men salget av mobiltelefoner er likevel synkende. (Image credit: Pixabay)

Why do we instinctively reach for brand-new devices when refurbished alternatives deliver comparable quality at a fraction of the financial and environmental cost? We've created a paradox in our digital lives: while our drawers overflow with discarded devices, we eagerly await the next product launch. The $485 billion mobile device market, growing steadily at 3.7% annually through 2029, thrives on this contradiction.

With an estimated 10 billion unused devices, such as smartphones, sitting idle in homes worldwide, we're simultaneously hoarding technology and demanding more. Despite consumers keeping their devices longer, with global upgrade cycles slowing to around 3.5 years according to GSMA data, the secondary market is yet to be embraced at scale.

The same study suggests that 70% of consumers would be willing to pay a premium for a more environmentally friendly device, yet only a small fraction are actually purchasing a refurbished device. This isn't just wasteful - it's unsustainable. Yet despite advancements in refurbishment technology, consumer skepticism persists. What if this reluctance isn't about quality or performance, but about perception?

Quinton Goddard

Head of Solutions & Sustainability for SquareTrade Europe.

The hidden life of dormant devices

Why do we hold onto our outdated mobile devices? The reasoning is more complex than you might think and offers a curious blend of emotional and practical reasoning. Many people worry about data security - fearing that their personal information could be compromised if they relinquish old devices. But equally compelling are the ‘just in case’ scenarios people construct: emergency backups, potential hand-me-downs, or nostalgic attachments to devices that once served as our digital companions.

This system and behavior creates what’s called a ‘materials paradox’ - precious resources are simultaneously considered scarce in supply chains yet abundant in hibernating products. Those 10 billion dormant devices worldwide are said to contain an estimated $57 billion worth of recoverable materials - a virtual urban mine of gold, silver, copper, and rare earth elements - growing ever more valuable as virgin sources become harder to extract.

Consider this: you would never purchase a new car while leaving a perfectly functional model gathering dust and losing value in your garage, would you? Yet with phones, tablets, and laptops this behavior has become normalized. Not only are consumers leaving devices in drawers when they could be selling them and redeeming hundreds of pounds, but this represents a missed business opportunity for the industry. They could be recouping that value of encouraging customers to sell or trade in these devices.

But why are we seeing this missed opportunity? Because we’ve disconnected the device in our hand from its environmental footprint, whilst leaving the valuable materials contained in the device, in the process. Our current consumption patterns demand resources equivalent to 1.75 Earths - a planetary balance sheet showing us deeply in ecological debt. This isn't just environmentally unsustainable; it's economically short-sighted for consumers and businesses alike.

The perception problem

At the core of our e-waste crisis lies not a technological limitation but a fundamental trust deficit. Despite remarkable advancements in refurbishment technologies and processes, many of us continue to view secondhand devices with skepticism, assuming they're inherently inferior to new products.

Research from ID Mobile suggests the psychological barriers: 61% of consumers worry about poor battery life, 55% question the physical condition, and 48% fear limited or non-existent warranties. Together, these concerns create a perception barrier that prevents over half of British consumers from considering refurbished options. But how much of this skepticism is warranted?

When we examine today's professional refurbishment ecosystem, we find a sophisticated industry that bears little resemblance to the informal secondhand markets of the past. Modern refurbishment facilities conduct comprehensive diagnostic testing across dozens of parameters - examining everything from camera functionality and screen responsiveness to processing performance and battery efficiency.

Devices undergo professional cleaning, component replacement when necessary, and rigorous quality assurance before receiving certification. The result? Refurbished devices that are visually identical and often perform indistinguishably from new ones, at a fraction of the environmental and financial cost. Why, then, does the perception gap persist?

Part of the answer lies in what behavioral economists call ‘status quo bias’. This is our tendency to prefer existing conditions even when alternatives offer clear advantages. This thinking - equating new with better - remains deeply ingrained in people’s psychology, particularly around products marketed as cutting-edge. This creates a fascinating paradox: while many consumers express environmental concerns, these values often disconnect from purchasing behaviors.

As Christiana Figueres, former Executive Secretary of the UN Framework Convention on Climate Change, put it in her 2020 book ‘The Future we Choose’: "The gap between what we know and what we do remains one of the greatest challenges in addressing climate change."

Closing the Trust Gap

So, how do we close this perception gap? The path forward requires reimagining how we communicate the true value of refurbished devices to skeptical consumers. By clearly demonstrating that these devices meet rigorous quality benchmarks, whilst offering significant cost savings, we can help overcome the lingering doubts that keep consumers reaching for new products.

First, the industry must embrace radical transparency through standardized grading systems and comprehensive health assessments that give consumers clear visibility into a device's history and condition. This information should be presented in a straightforward, consumer-friendly format that highlights what matters most to users—such as actual battery life expectancy and use of original manufacturer parts in prior repairs. These aren't merely technical specifications - they are trust-building mechanisms that have the power to transform uncertainty into confidence.

Second, we need collective communication efforts across the technology ecosystem. Telcos, manufacturers, retailers, and sustainability organizations must expand the discourse around refurbished technology's environmental benefits. While specific impact figures vary by device type and refurbishment process, the consensus among lifecycle analysts is unequivocal: keeping devices in circulation longer substantially reduces resource extraction, manufacturing emissions, and e-waste generation.

Recent Vodafone research reveals this communication opportunity clearly: while 45% of consumers consider environmental impacts before purchasing new technology, seven in ten are actively seeking easier ways to protect the planet. This gap between intention and action represents a significant opportunity for better messaging around refurbished options.

Creating pathways to circular consumption

For refurbished technology to gain mainstream acceptance, consumers need convenient, trustworthy pathways to transition between devices. Trade-in programs represent one promising avenue, allowing consumers to capture residual value from older technology while ensuring devices re-enter the circular economy rather than ending up in landfills.

Device protection plans that prioritize repair over replacement play an equally crucial role in extending product lifespans. By making repairs accessible and affordable, these plans help combat the throwaway culture that has dominated consumer electronics.

Equally important is offering comprehensive insurance for refurbished devices, which significantly increases customer confidence and trust in these products. When consumers know their refurbished purchase carries the same protection as a new device, the perceived risk gap narrows substantially.

Education remains another powerful pathway. When consumers understand the environmental impact of device manufacturing - that 80% of a smartphone's carbon footprint occurs during production before it's ever powered on - the value proposition of refurbished devices becomes considerably more compelling.

The next time you consider a technology upgrade, I challenge you to consider refurbished options with fresh eyes. Research retailer reputations and consumer experiences. Support brands that prioritize repairability and circular principles. These seemingly small decisions, when multiplied by millions of people, have the potential to transform our relationship with technology from extractive to regenerative.

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Head of Solutions & Sustainability for SquareTrade Europe.

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