Recycled Handset Sales To Hit $6 Billion

    October 23, 2007

Revenue from the sales of recycled and refurbished handsets will reach $6 billion in 2012, up from $3.5 billion in 2007, according to ABI Research’s "Handset Recycling and Refurbishment" study.

Shorter handset replacement times, growing demand for low-cost handsets in emerging markets and regulatory requirements will be the primary market drivers.

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 average revenue per user (ARPU) subscribers and start generating profits on low margin accounts quickly, rather than having to wait to recover subsidies on new handsets."

ABI says that recycled and refurbished hand sets will make the used mobile phone market more reliable for buyers because the phones are tested and repaired by recycling companies. Most of the handsets will have a 90-day warranty or sometimes a full one-year warranty, on par with new handsets.