Recycled Mobiles To Generate $3 Billion

Shipments of recycled handsets are on track to exceed 100 million units in 2012, according to a recent study from ABI Research.

Shorter handset replacement periods, growing demand for low-cost mobiles in emerging markets, regulatory requirements, and growing consumer awareness are the main factors behind the market for recycled handsets.

ABI Research industry analyst Shailendra Pandey says, "Mobile phone recycling companies such as ReCellular, Fonebak, and Eazyfone are witnessing good market growth, but increasing consumer awareness and retrieving used handsets at affordable prices are still key challenges.

"Also, the ASP of used handsets falls rapidly, so these handsets need to be handled at the lowest possible cost to ensure decent margins on their resale."

Mobile vendors including Nokia, Motorola, Sony Ericsson, Samsung, and LG are focusing more on designing and manufacturing mobile phones that are easily recyclable and contain a minimum of hazardous materials. This is being complimented by the efforts of mobile operators, retailers, recycling companies and charities, leading to more users starting to return their old mobiles for recycling.

ABI Research believes the market for recycled handsets will grow steadily in the next five years, generating over $3 billion in revenue by 2012.