Recycled and Refurbished Handset Sales to Generate $3.5 Billion in 2007

Revenue from the sales of recycled and refurbished handsets is expected to be over $3.5 billion in 2007, 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 handsets.

ABI Research industry analyst Shailendra Pandey says, “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. Handsets for refurbishment are also becoming available in good 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 $6 billion 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.

ABI Research’s new study, "Handset Recycling and Refurbishment," focuses on the growing market for recycled and refurbished handsets and the opportunities and challenges they create for handset vendors, mobile operators, recycling companies, and retailers. It discusses the high level business and marketing issues, and critical considerations for addressing the market. It also provides detailed shipment and revenue forecasts for recycled and refurbished handsets as well as for ethical disposal of handsets from 2005 to 2012.

This study forms part of two ABI Research services, Mobile Devices and Mobile Operators, which include a variety of Research Reports, Research Briefs, Market Data, Online Databases, ABI Insights, ABI Vendor Matrices, and analyst inquiry support.

Founded in 1990 and headquartered in New York, ABI Research maintains global operations supporting annual research programs, intelligence services and market reports in broadband and multimedia, RFID & contactless, M2M, wireless connectivity, mobile wireless, transportation, and emerging technologies.  For information visit www.abiresearch.com, or call +1.516.624.2500.