‘70% users ready to pay premium for environmentally friendly phones’

Fast-changing consumer attitudes towards the repair and reuse of mobile phones are driving a rapidly growing market for ‘circular’ devices and services, which could exceed $150 billion by 2027.

The GSMA, which disclosed this in a new report titled: ‘Rethinking Mobile Phones: the Business Case for Circularity,’ noted that it surveyed more than 10,000 mobile phone users across 26 countries worldwide.

Unveiled ahead of the MWC25 Barcelona, GSMA noted that evolving consumer attitudes, regulatory changes and the growing impacts of e-waste are converging to challenge the traditional linear business model of the mobile phone industry.

With more than 70 per cent of consumers surveyed globally stating that they would be prepared to spend more for environmentally friendly phones, the report highlighted the growing opportunity for the mobile industry to embrace circularity, not simply for positive environmental reasons, but also for commercial benefits.

Within the report, a survey of 31 operators worldwide highlighted how they are embracing circular business models. Ninety per cent of operators surveyed already operate at least one circular business model, with refurbishment and e-waste management being the most popular. However, respondents recognised huge potential in scaling up further; 80 per cent with refurb programmes thought an ‘a lot more’ could be done. This could include developing leasing, renewal and upgrade propositions to tap into new revenue streams, increase customer loyalty, and provide quality assurance.

Head of Climate Action, GSMA, Steven Moore, said: “Fast-growing consumer demand for green and refurbished phones, as well as repair services, is a fantastic business opportunity for the mobile industry. Unlocking this requires strong collaboration across the value chain, helped by enabling government policies and incentives, bringing together manufacturers, mobile operators, refurbishes’, repairers, and recyclers to address key barriers to unlock new revenue streams and future-proof business models.”

Amidst this, consumers want more durable and sustainable devices. The report noted that sales of new mobiles have slowed in recent years, with consumers holding on to devices for a year longer than a decade ago, and many turning to the rapidly growing market for used and refurbished phones. This shift reflected growing consumer interest in refurbished phones as a way to save money, get a high-end device, and minimise environmental impacts.

Accordingly, 85 per cent of consumers globally consider sustainability to be important when purchasing a device, exceeding other criteria such as device aesthetics (73 per cent) and AI capabilities (67 per cent). One in six phones sold in France last year was refurbished, while over half of Indian consumers surveyed were likely to consider refurbished for their next phone purchase. Two-thirds of consumers surveyed globally reported needing to have their current or previous phone repaired.

The report showed that circularity is no longer just an environmental imperative – it’s a major business opportunity. The growing market for refurbished devices and repair services – projected to exceed $150 billion globally by 2027 – offers new revenue streams for both manufacturers and operators. Making durable and repairable devices fosters customer satisfaction and loyalty, strengthens the brand image and resonates with environmentally conscious consumers and investors.

Beyond financial gains, circularity strengthens local economies, reduces reliance on mining and imports, expands digital access and creates new economic job opportunities. The potential is not limited to phones themselves; the GSMA recently developed an online marketplace for mobile operators to resell and reuse network equipment, which more than 40 operators are now using, delivering both financial and carbon savings for the industry.

With the average mobile phone user having more than one old phone sitting unused at home, the report estimated there are around 5-10 billion dormant devices worldwide, containing 100,000 tonnes of copper, seven million ounces of gold, and a million ounces of palladium – worth around $20 billion. Given the growing strategic importance of critical minerals, old phones and electronics are becoming an important source of materials in many countries.

In 2024, over 1.2 billion new smartphones were sold, generating over 60 million tonnes (Mt) of CO2 emissions from manufacturing – equivalent to the yearly carbon output of countries such as Morocco or Romania. According to the UN, e-waste generates yearly external costs of $78 billion to both people and the environment. Repairing and refurbishing mobile devices can reduce e-waste and reduce emissions – with 80-90 per cent lower carbon emissions than manufacturing new devices.