A circular economy for smart devices Opportunities in the US, UK and India Contents

Summary 2

1. Introduction: good devices, bad systems 3

2. Six circular economy models 6

3. Market opportunities in the US, UK and India 21

4. The benefits of a circular economy for smart devices 26

5. Annex: methodology 33

1 Summary

Smartphones, tablets and laptops have analysis reveals that a two year old flagship of consumers without a , who moved from the fringe of computing to the smartphone can be more attractive than tend to be older and less well off. mainstream in just five years. Sales of these today’s mid to low tier best sellers. It shows smart devices exploded as consumers saw that repair makes economic and The saturated market for laptops, by the benefits of seamless connectivity, and environmental sense for at least four years, contrast, would be better suited to circular were drawn to the simplicity of new user and up to seven in some cases. And it economy models which keep laptops with interfaces. In many cases, the environment demonstrates that keeping a mobile phone a single user for longer. benefited too, as energy efficient devices in use for just one extra year cuts its displaced older computers, and new lifetime CO2 impact by a third. In India, low labour costs and more mobile-enabled cloud systems became standardised hardware in cheaper devices platforms for efficiency across the economy. Just as there isn’t a single business model make harvesting parts a viable strategy. for smart devices, there isn’t a single route Similarly, India’s existing network of small Unfortunately, this isn’t the whole story. to a circular economy. Instead, this report electronics repairers would favour a Smart devices are smart, but the physical sets out six circular economy business decentralised, DIY repair approach. systems they end up in are not: 89 per models that companies in different parts of cent of mobile devices in the US were the supply chain can experiment with. There are huge circular economy thrown into landfill in 2010, even These range from software only changes to opportunities for the makers of though the resources they contain mean hardware redesign to enable existing parts , tablets and laptops. With it is economically sensible to recycle to be used again. Even small design five billion potential customers seeking them. Many millions of usable devices adjustments can make a huge difference: access to smart devices, companies that are left forgotten in drawers once their replacing a screen on the iPhone 3GS takes reduce their costs and environmental owners upgrade, despite a robust 15 minutes; on the less modular HTC One, impact through circular strategies will second-hand market. This wastes perfectly it takes 90 minutes. prosper. The good news is that the tools good devices, frustrates consumers and to do so, as we outline in this report, are harms the environment. This report analyses US, UK, and Indian already at hand. markets, identifying the most receptive But technologists don’t have to let their consumers for the different circular hard work end up as waste after a few short economy models. In developed markets like years. A circular economy for smart devices the US and UK, second-hand phones could would keep them in use for longer. This prove attractive to the roughly 40 per cent 2 1 Introduction: good devices, bad systems The technologists that created mobile customers around the world, increase Valuable resources are being lost1 computing started with a gloriously blank brand loyalty, and cut manufacturing costs canvas. They used their creativity to design and risks. Doing so would also help to cut elegant, useful, and universally desirable electronic waste, carbon emissions and new devices and systems. Their products are resource use. carried in billions of back pockets and bags 89% across the wealthy world, and they are The circular economy is already aiming to sell to the next five billion making money people, all of whom are eager to benefit A circular economy for consumer from the information and communication electronics is already here. It has developed that the internet provides. from the bottom up: the value of Apple devices sold on eBay in the US in 2013 was But these ingenious people have sent their nearly $2 billion.2 NextWorth estimates the devices out into a world whose physical potential value of the US smartphone trade systems are designed with none of the in market in 2014 to be over $3 billion.3 elegance of their digital counterparts. The result is that old but usable laptops, tablets And it’s not just smartphones. WRAP and smartphones are ending up in landfill estimated in 2013 that the value of two to or languishing in drawers, where they sit three year old laptops in the UK was £720 89 per cent end up in landfill ...while millions are discarded until they reach technological obsolescence. million and two to three year old tablets The US threw away 141million mobile devices 28-125 million phones languish unused But clever devices deserve better than to were worth £90 million after any collection in 2010, 89 per cent of them went to landfill in the UK alone. This means for every phone 4 become waste after just a couple of years of and repair costs were taken into account. in use, up to four sit in drawers unused use: electronics and the cloud services that Even when devices are no longer usable they connect to can be the source of the they have value: the market for IT spares solution. and components is estimated to be greater than £10 million a year in the UK alone.5 This report shows how companies across the mobile electronics supply chain can adopt a circular economy model to make money out of old devices, attract new 4 The used device market is growing fast, consumers to recover more of the devices Market predictions for traded-in and used smartphones to 2018 with estimates of global used smartphone that would otherwise end up scrapped or sales expected to rise from 53 million to stored away. 257 million between 2013 and 2018, driven by a doubling of trade-ins in the But it is not just about gaining more value. Trade-in Used US.6 But these big numbers hide far greater Manufacturers, software providers, retailers potential: globally, only 12 per cent of and carriers would benefit from building smartphone upgrades involved the old circular economy thinking into their Upgraded 53 million 257 million smart phones used used device being sold or traded. business plans because it is popular with either traded in smartphone smartphone customers, helps to mitigate business risks, or sold sales sales This is changing the market. Credible and dramatically cuts the environmental projections suggest that eight per cent of impact of devices: just keeping a new sales will be cannibalised by reuse in smartphone in use for an additional year 7 50% 2018. Rather than seeing these trends as a cuts its CO2 impact by 31 per cent. threat, forward thinking companies could 25% see them as a new opportunity. In this report we set out these benefits in detail, but if they are to be realised, They wouldn’t be alone: a growing number companies will have to experiment with of independent trade-in businesses like new, circular economy models. 2013 2018 2013 2018 Gazelle in the US and Mazuma in the UK are competing for old mobile devices on We outline six models in chapter two (see In chapter three we provide a more the ease, trust, and reliability of their page six), demonstrating how companies detailed analysis of the US, UK and service. Manufacturers are also beginning can adapt software, hardware and business Indian markets, to show how circular to enter the market, with Apple offering a models for a circular economy. They show models for smart devices meet the trade-in service for iPhones and iPads in the the changes companies could make, which demands of their consumers. UK, US and India, and Samsung running parts of the supply chain might benefit one for smartphones in India. But carriers, most and which consumers are likely to be retailers and software providers also have an most receptive. opportunity to grow the total size of the market by using their relationship with 5 2 Six circular economy models Three types of intervention There is no single model for a circular the supply chain than others. They are Hardware Software Business model economy in consumer electronics. The developed with information about why supply chain for mobile devices is complex, different supply chain actors might benefit No redesign No redesign No redesign highly varied and still evolving. from a particular model, and also which consumers might find them attractive. Battery and screen Leasing, eg device Simplified second life OS Companies like Apple and are replacement upgrades on schedule vertically integrated across hardware and The overall aim is to provide an interested Cosmetic modularity (eg Hardware diagnosis Buy back software; Samsung is even more tightly company with enough information to Nokia’s swappable shells) integrated across hardware, but largely experiment with different ways of Full modularity Servitisation, eg reliant on others for software; is becoming more circular. Performance diagnosis (eg Phonebloks) Chrome OS mostly a software company but is increasingly influencing hardware design; The six models are: Durability Collection prompting and carriers, like O2 in the UK or AT&T in the US, provide services but also 1. Software led longevity Part compatibility Driver standardisation occasionally produce hardware. There is 2. Better reuse similar diversity across the whole supply 3. Minor modularity chain. 4. Cloud offloading Rather than imposing a single model, this 5. Parts harvesting and remanufacturing analysis builds on three types of intervention: hardware, software and 6. DIY repair business model changes. Each has a number of options, outlined in the on the left.

Using this framework, six combinations of hardware, software and business model options are set out in this chapter. All will increase the lifetime of older devices, but some will work better for different parts of 7 Model 1 Software led longevity

Out of date software means usable cent less than the almost identical Google Hardware Software Business model hardware provides a second rate Nexus, which does.9 experience, with reduced features, limited No redesign No redesign No redesign app compatibility and security vulnerabilities. Research firm Bernstein notes that This reduces reuse opportunities: twenty smartphones with unsupported operating Battery and screen Leasing, eg device 10 Simplified second life OS per cent of consumers say that they replace systems have “limited to no resale value.” replacement upgrades on schedule a device when there are no more software This is a major barrier to reuse: 63 per cent Cosmetic modularity (eg 8 Hardware diagnosis Buy back updates for the old one. Updates are a of Android and 54 per cent of Windows Nokia’s swappable shells) significant factor in a device’s resale value: Phone devices are running two year old Full modularity Servitisation, eg The LG G2, which has no guarantee of versions; 19 per cent and 17 per cent, Performance diagnosis (eg Phonebloks) Chrome OS timely software updates, is worth 15 per respectively, are running three year old versions.11 Durability Collection prompting

Part compatibility Driver standardisation Name Manufactured Support ended Months supported January 2010 September 2011 20 December 2010 October 2012 22 November 2011 July 2013 20 iPhone June 2007 February 2010 32 iPhone 3G July 2008 November 2010 28 iPhone 3Gs June 2009 February 2014 56 iPhone 4 June 2010 March 2014 45 iPad April 2010 May 2012 25 Nokia Lumia 800 November 2011 November 2012 12 Nokia Lumia 900 April 2012 November 2012 7 HTC HD7 October 2010 November 2012 25 HTC Titan October 2011 November 2012 13 8 Eighteen month old iPhones on average have cost $44 million to code and LXDE outdated software are less likely to buy In India, extended software support is retain 53 per cent of their value, versus 42 $1.6 million.13 their next device from the same becoming a defining feature of lower per cent for Android flagships.12 iPhone manufacturer. HTC has recognised this specification phones which can’t compete software support lasts on average 16 Which parts of the supply chain benefit? and promised to support software for on hardware with premium models. For months longer. two years after release.14 instance, Chinese manufacturer Xiaomi is Software producers focusing explicitly on providing the latest The circular economy strategy to solve Companies that make money through the • User experience: this is a differentiating Android OS to all device users, rather than these problems has two potential routes: use of a device (eg Google via Android, factor among brands as prices drop, competing solely on specifications.21 the first would be simply to extend and Apple via iTunes, and other digital services markets become saturated and hardware Google’s programme will guarantee software support for longer. The and app developers) already have incentives innovation slows.15 Software support for guarantee regular updates by providing second is to develop a lighter weight to give customers up to date software: previous generations of iPhones has been hardware standards for companies, such as second life firmware for older devices. This showcasing the best features of the OS, part of Apple’s strategy of leading the budget Indian manufacturers Micromax could possibly involve turning off certain enabling wider choice of apps and better market in customer experience.16 and Karbonn.22 features like visual transitions, skins, data analytics, and avoiding reputational gesture controls, widgets and cloud risks from security breaches. The challenge • Maintaining value: consumers prefer A used device with second life firmware syncing, for example, and then either for them lies in diverting funding to a products with higher resale values.17 Some would be most attractive for those in the US selling second-hand devices with more second life , and securing users buy devices with a plan to sell them or UK who don’t already own a smartphone limited functionality to market segments agreement from hardware providers either afterwards; others use resale value as the or tablet. This includes low income that would buy lower tier devices, or to open source hardware drivers or to provide best indication of the quality of the consumers, or those who would prefer a providing this as an additional ‘keep your continued support for these over time. product.18 simpler device;23 for example, the over 65s device fast’ service for existing users for market, which makes up around a sixth of free or for a small upgrade fee. Manufacturers Where’s the market? the population of the UK.24 Manufacturers have less direct incentive to In the US and UK, simply extending A version of this model exists already, with support second life operating systems, as software updates would be popular with Similarly, in India, older devices with tech savvy users switching to Cyanogenmod they make money based on device sales, not consumers who buy new hardware second life firmware would suit those who or other custom firmware for mobiles and device lifetime. However, indirect reasons infrequently, such as lower socioeconomic are looking to enter the market for the first tablets, or less resource intensive PC to provide software support include: groups or those using prepaid plans with time and would like a working device at operating systems like Lubuntu for laptops. unsubsidised devices.19 Also, it would be minimal cost. Older devices could easily And developing software shouldn’t be • Customer frustration: customers who popular with the increasing number of compete with the $35 Cloud FX mobile expensive: Cyanogenmod is estimated to replace a device due to frustration with people who sell devices on after first use.20 phone, for example.25 9 Model 2 Better reuse

the condition of the device, or be used as a Profit from reuse Hardware Software Business model proxy for likely damage. For example, a iPhone tablet which receives above a certain Sale price 500 No redesign No redesign No redesign number of impact Gs is likely to be 400 damaged. This would reduce the cost of $ 300 Profit Battery and screen Leasing, eg device assessing second-hand devices and increase 200 Simplified second life OS 100 replacement upgrades on schedule confidence in their quality. Cosmetic modularity (eg Cost of acquiring Hardware diagnosis Buy back iPad Nokia’s swappable shells) The second tool would address the lack of 500 Full modularity Servitisation, eg awareness and hassle factor preventing 400 Performance diagnosis $ 300 (eg Phonebloks) Chrome OS greater reuse. It would do so by prompting 200 consumers to sell their old device, 100 Durability Collection prompting displaying its value on a range of different buyback services, like eBay, Mazuma, or MacBook Part compatibility Driver standardisation 2,000 Gazelle. It would need to offer very simple 1,600 collection options, building on recent $ 1,200 improvements in delivery systems for 800 400 online shopping, including Collect+, Globally, there is no shortage of demand for in many devices for over five years from the Amazon lockers, the post office network, Android phone second-hand devices, yet millions of original sale date. or home delivery. 500 phones sit in drawers in the US and the UK, 400 $ 300 while the same models fetch high prices on This model would use two software tools Ideally, selling would be a simple, one click 200 eBay. Between 27 per cent and 36 per cent to supply more used devices to the people action, using geolocation to offer the 100 of US consumers said they keep an old who want to buy them. nearest drop off point, automatically phone because they “don’t know what to deducting postage charges and providing Android tablet 250 do with it.” Seventeen per cent were just The first would be a hardware diagnosis packaging, securely wiping data and 200 26 “too lazy” to get rid of them. The key to app which would measure water damage, immediately crediting the user’s bank $ 150 27 100 maximising the value and environmental memory errors, charge cycles and battery account. The trigger for such a prompt 50 benefits of reuse is to retrieve used devices lifetime, impact Gs, number of reboots, etc. could be set based on contract length, as 0 1 2 3 4 5 6 as early as possible, although there is value These data could either directly determine with existing upgrades, or could be based Years 10 on sim card swapping, Google or iCloud Carriers and retailers and recycling is mostly very effective in • the third of US and UK customers who registration of a new device, or could even Benefits are likely to be higher for carriers: India.31 Of the smartphones collected cite value for money as most important prompt a user when a device hasn’t been retailers like mobiles.co.uk already offer six through trade-in programs in the when choosing a mobile device, plus used for a period of time. month old refurbished devices on contracts developed world, 30 per cent are sold in those who don’t own one at all due to that cost 15 per cent less than normal developed markets and 70 per cent are sold cost: in the US, 59 per cent of 18 to 29 This model would be most likely to work contracts, addressing a more price sensitive in emerging markets, as export costs are year olds without a smartphone don’t for smartphones and tablets, where market segment. cheap and brand name devices are in high own one because it’s too expensive;38 information about device usage is routinely demand.32, 33, 34 A similar pattern holds for 35 collected already and upgrade cycles have The biggest challenge for this model is that laptops and tablets. • prepaid customers who don’t have access not yet matched the technical obsolescence the software provider is probably best to a subsidised device on contract; of the underlying product. placed to develop and deliver both It is likely that Apple already sells factory hardware diagnosis and software refurbished phones from developed • the 30 per cent of the UK population Which parts of the supply chain benefit? prompting services. This is because it sees markets to India.36 It is able to do this easily who are ‘gadget lovers’ and want to Manufacturers, carriers or retailers could when users change their devices, is a as it controls hardware, software and has experience a more premium model or capitalise on the high value of unused neutral party when presenting different substantial power over carriers. A similar upgrade more often than they could devices: up to $58 billion of unused US and end of life buyback options and already model could be used for mid-range devices afford to with new devices; and39 UK smartphones alone.28 However, as the collects user data, which may be relevant to from other manufacturers, which could market develops it is likely to become hardware diagnosis. However, it has the compete with low cost Indian and Chinese • corporate customers, who are highly competitive, with schemes being least to gain from doing so at present. But, products to attract first time buyers. “increasingly willing to give employees subject to a significant network effect. as e-waste collection requirements expand, like-new refurbished phones that are it is possible to imagine that software In the US and UK, there is an opportunity cheaper than new phones.”40 Manufacturers providers could offer collection prompting for manufacturers to sell used devices to Relatively new second-hand devices can be as a core feature of an operating system, in compete directly with budget devices. For used internally by manufacturers, as a exchange for a service fee or as part of the example, the Samsung Galaxy SIII, released replacement for insurance claims or attractiveness of a software ecosystem. in May 2012, has similar specifications to warranty returns.29 Older devices can be the Moto E, released in May 2014, and sold to consumers in the developing world Where’s the market? commands a similar price.37 Potential to attract new users to the ecosystem who The problem of unused devices not getting market segments to target include: could buy new devices in the future.30 into second-hand markets is currently a first world problem. Informal reuse, repair 11 Model 3 Minor modularity

Second-hand devices requiring minor Profit from minor modularity Hardware Software Business model repair are worth repairing for three to five iPhone years after sale, even after logistical and Sale price 500 Profit No redesign No redesign No redesign refurbishment costs are taken into account. 400 But there is huge variation in the cost of $ 300 Battery and screen Leasing, eg device repair: many devices don’t have easily 200 Simplified second life OS 100 replacement upgrades on schedule removable batteries or replaceable screens, Cost of acquiring Cosmetic modularity (eg Hardware diagnosis Buy back as designers favour slimness over iPad Nokia’s swappable shells) repairability. 500 400 Full modularity Servitisation, eg $ Performance diagnosis 300 (eg Phonebloks) Chrome OS Screen and battery replacements are the 200 most frequently needed repairs for a range 100 Durability Collection prompting of devices: 85 per cent of iPhone repairs are for cracked screens according to iCracked.41 MacBook Part compatibility Driver standardisation 2,000 According to WRAP, 73 per cent of tablets 1,600 requiring repairs only need battery or $ 1,200 42 800 screen replacements. 400

Lack of battery life limits the attractiveness Android phone 600 of phones, with 71 per cent of consumers 500 400 putting a long lasting battery as the most $ 300 important feature desired in a new phone, 200 compared to internet access (57 per cent) 100 and a high specification camera (41 per Android tablet 43 cent). Laptops are much less likely to need 250 screen replacement but would benefit from 200 44, 45 $ 150 an easily replaceable battery. 100 50

0 1 2 3 4 5 6 Years

12 In this model, minor modularity means • Higher resale value: as mentioned in the 70 per cent frustrated with battery life, that batteries and screens are designed to be model one, higher resale value will add who might benefit from changing the easily replaceable. More modular devices brand value. battery as their device gets older.52, 53 The would have substantially cheaper repair large amount of repair activity in India costs. According to iFixit, replacing a screen • Low cost style differentiation: the suggests that Indian consumers would find on the iPhone 3GS takes 15 minutes versus worldwide popularity of the Nokia 520, minor modularity attractive (see model six 90 minutes on the HTC One.46 This sixfold which comes in bright colours with for more details.) difference has a huge impact given the swappable shells to ‘match your outfit’ frequency of these repairs and the fact that indicates there could be an appetite for The second group is those who are labour cost is the main constraint on repair. devices that include modular covers, in upgrading for reasons of style The trade off in thickness, at least addition to screens and batteries.50, 51 differentiation: for example, 45 per cent of comparing the iPad and Google , Swappable covers for second-hand German consumers replace devices because appears to be just one millimetre.47 devices could refresh the style of an older “there is a new model on the market”54. For core, boosting the attractiveness of some, a superficial change could be enough. Which parts of the supply chain refurbished devices. benefit? Similarly, the 16 per cent of UK consumers Where’s the market? that prioritise stylish design when choosing Manufacturers A manufacturer that adopts minor a device may be interested in only changing There are three main benefits for modularity could attract two types of the exterior look of the device. manufacturers: customers, in addition to those consumers identified as potential purchasers of The enduring popularity of Nokia models • Brand loyalty: 95 per cent of iFixit users second-hand devices in the ‘better reuse’ in India suggests that changeable cases may say successful repair makes them more model. be of interest to Indian consumers, more of likely to buy another product from the whom choose devices based on style than same manufacturer.48 Customers have The first group could be attracted on the on price, according to one survey.55 high expectations of reliability for basis of longer lived devices. This could electronics products and are frustrated if encompass the 70 per cent of people in the they break, so easy repair may go some UK who don’t prioritise owning the latest way to reducing this frustration.49 gadgets, the third who buy accessories to prevent their screen from scratching and 13 Model 4 Cloud offloading

This model accelerates the trend of cloud offloading already apply to all device Hardware Software Business model offloading functionality to the cloud, seen types: Opera Mini can speed up browsing in software like Dropbox, Evernote, Google on smartphones; Kindle Fire tablets offload No redesign No redesign No redesign Docs, Opera Mini and others. This is done web browsing tasks to Amazon’s EC2 cloud; by shifting away from selling a device and and ChromeOS and Citrix demonstrate that Battery and screen Leasing, eg device Simplified second life OS access to the cloud (the traditional lower power laptops can meet the needs of replacement upgrades on schedule smartphone model) or device only some consumers. Cosmetic modularity (eg Hardware diagnosis Buy back (common for tablets and laptops). Instead, Nokia’s swappable shells) it promotes servitisation: selling a service Even the most latency sensitive Full modularity Servitisation, eg that bundles access, device and applications, like video gaming, are Performance diagnosis (eg Phonebloks) Chrome OS performance together. offloading tasks to the cloud: the Xbox One offloads processing to Microsoft’s Azure Durability Collection prompting In practice, this might mean paying for a cloud.57 This suggests the network has service package that provides access to a caught up. The challenge is to extend this Part compatibility Driver standardisation device; guaranteed application load times; trend and to target second-hand hardware compatibility with MS Office; access to more explicitly. specialist software; 3G and WiFi connectivity and minimum battery life.56 Which parts of the supply chain benefit? Offloading tasks to the cloud means older hardware can be used, including Service providers second-hand devices. More durable Cloud offloading offers an opportunity to hardware could be helpful, and grow based on providing an integrated performance diagnosis software would service, rather than simply competing on need to be integrated to ensure that the data bandwidth, while reducing total agreed service commitments (eg speed to service cost by using cheaper second-hand load webpages) were met. devices. However, software developers are the early movers in providing the cloud Network coverage and latency are the main based services that any servitised model challenges for this model, but elements of would require. 14 Manufacturers cent of over 65s without a smartphone The main benefit of cloud offloading may perceive no need or relevance for new be to lower cost, less established devices while a further 13 per cent say manufacturers, who could focus on they are too complicated;61a targeted durable, lower specification new and device with the right features could remanufactured devices rather than going attract these customers; and into direct competition with manufacturers who are competing on high cost, high • business customers who have a high specification new devices. turnover of different users on the same devices, or who require the strong data Where’s the market? security enabled by not processing data Cloud computing and servitisation locally. exist already, but they don’t often use second-hand devices. However, the Cloud offloading could also apply to majority of consumers (70 per cent in the facilities where data control is important UK) don’t “love buying gadgets”,58 and and tasks are limited. One example might many others want only a limited set of be using second-hand tablets for medical features. Examples include: records management in hospitals or for warehouse stock management. Existing • lower socioeconomic groups or those successful cloud models for laptops are in looking to spend as little as possible on a education and large businesses with a device, as this model could work out limited range of use cases. Unfortunately, much cheaper, eg currently relatively patchy 3G networks in India limit are available for $200-400, while regular cloud offloading at present.62 notebook prices start around $400;59

• consumers confused by the range of new devices who would rather only choose the service, especially if they only plan to use basic features.60 For example, 57 per 15 Model 5 Parts harvesting and remanufacturing

This model would extend the minor This model could be most useful for slowly Hardware Software Business model modularity envisaged in model three to evolving technologies, such as mid-range include improved disassemblability and cameras and power supplies, as well as No redesign No redesign No redesign compatibility of additional components. components that break easily, such as micro USB connectors, laptop power connectors Battery and screen Leasing, eg device Simplified second life OS This would enable the reuse of and radio modules for WiFi and . replacement upgrades on schedule components when the device is otherwise Cosmetic modularity (eg Hardware diagnosis Buy back not able to be repaired. It would keep high Used components could be used in new or Nokia’s swappable shells) embodied carbon components, such as remanufactured devices, or in secondary Full modularity Servitisation, eg integrated circuits, which contribute 35 markets.64 For a detailed breakdown of the Performance diagnosis (eg Phonebloks) Chrome OS per cent of a smartphone’s carbon carbon impacts of repair, see chapter four. footprint, in use for longer.63 Durability Collection prompting

Part compatibility Driver standardisation Embodied carbon in laptop components

High carbon Low carbon Camera 370 kgCO2e/kg

Display 360 kgCO2e/kg

Plastic 5 kgCO2e/kg

16 Currently, disassembly is common for hardware side, components’ size, shape and Reuse and parts harvesting are much more valuable than recycling expensive servers but uneconomic for most connectivity need to be standardised. On the mobile devices in the US and UK, due to a software side, a lack of available drivers is the New phone Second-hand phone combination of high labour costs and main challenge: although Windows and design choices that favour slimness over Linux are able to dynamically load drivers, disassemblability.65 Even in China, which tablets and smartphones have architectures Product price £599 has wages only somewhat higher than which require device specific kernels. There India, complete disassembly may become is no technical reason why this couldn’t uneconomic by 2015, with limited change, as Google’s Project Ara, which uses disassembly ceasing to be economic by dynamically loading drivers, shows.67 2026.66 However, the more fundamental challenge is to extend the availability of drivers, most of

This suggests there is a window of which are developed by component Price if reused £290 opportunity for manufacturers to manufacturers and are only provided under Parts £188 remanufacture devices over the next licence to original equipment manufacturers Parts £170 decade in India, starting with existing (OEMs).68 devices, while they redesign devices to ensure that partial disassembly is Which parts of the supply chain economic in the longer term, for benefit? example to extract the camera. Materials £1.50 Materials £0.72 Manufacturers, remanufacturers and Pressure to produce low cost devices is refurbishers already leading to component The majority of the value of broken devices standardisation in Android One devices. lies in the highly engineered components, Finished products are worth much more Parts in a broken phone are worth nearly than the raw materials inside them one third of the original value of the device The limited range and high popularity of rather than raw materials, meaning Apple products also makes component component reuse is the best way of reuse possible. retaining value.

However, there are a number of barriers to Manufacturers that redesign devices to be expanding remanufacturing. On the able to reuse components avoid the costs of 17 producing new parts. The same is true for Where’s the market? mortar retailers for distribution and remanufacturers and refurbishers. An apt The UK’s Centre for Remanufacturing and reverse logistics. metaphor is the car industry: cars are readily Reuse notes that remanufacturing is at its disassemblable; and many parts are most successful when it is most hidden, Opportunities for parts use in secondary compatible across generations and model due to consumer perceptions about the markets include redeploying screens and types. The result is a robust market for spare reliability of remanufactured goods.69 cameras for low cost devices, and using parts and substantial profits for Certainly, in the US and UK markets, laptop batteries to power off-grid LED remanufacturers. remanufacturing would work best if it were lighting, a secondary use which has already invisible to the consumer, with full new been trialled in Bangalore.72 At the same time, raw material prices have warranties applying to devices that contain risen dramatically as well, particularly for remanufactured parts. specialty metals. Reuse of components is an opportunity to hedge against material risks In India, device and component reuse is (see chapter four.) higher than in developed markets, and some generic components are already used. Carriers and retailers For example, Micromax buys Mediatek or Because of high labour costs in the US and Snapdragon processors for budget devices UK, dramatic design changes would be rather than custom building them.70, 71 required to increase parts harvesting and remanufacturing significantly. This suggests that a more explicit strategy of leasing phones to consumers could be The most obvious way to justify such a successful. Such a leasing model could redesign would be for a manufacturer and a promise that the recovered components carrier or retailer to form a partnership for from a traded-in phone will be used to leased devices. This would enable devices to reduce the cost of a new phone, provided come back to the manufacturer and savings consumers stick with the same to be shared between the manufacturer and manufacturer. This could be done via the retailer or carrier. online channels, but as these account for only ten per cent of sales, manufacturers may wish to partner with brick and 18 Model 6 DIY repair

In addition to screen and battery some benefits. Consumers find it Hardware Software Business model replacements, for which there is robust frustrating to throw devices away because UK data, interviews with the Restart of minor breakages that can’t easily be No redesign No redesign No redesign Project and iFixit suggest that some repaired. consumers replace their tablets and Battery and screen Leasing, eg device Simplified second life OS laptops early due to maintenance issues Ninety five per cent of iFixit users say replacement upgrades on schedule like dust blocking fans, laptop hinge successful repair makes them more likely to Cosmetic modularity (eg Hardware diagnosis Buy back failures, crumbs stopping keys from buy another product from the same Nokia’s swappable shells) working or damaged power ports, which manufacturer.75, 76 Full modularity Servitisation, eg they find difficult or impossible to fix. Performance diagnosis (eg Phonebloks) Chrome OS makes repairability a unique selling Redesigning devices for repairability, and point, providing extensive support Durability Collection prompting providing information on how to repair including interactive video teardowns.77, 78 them, would enable customers to address Part compatibility Driver standardisation these problems themselves. However, many And DIY repair can help to cut the cost of IT manufacturers have resisted such an servicing warranty repairs. Dyson, for approach: has refused to release its example, designs for repair, sells spare parts repair manuals, citing intellectual property and provides guidance on how to repair its rights and Apple has developed proprietary appliances via a call centre.79 The benefits of screws to prevent customers from opening this to refurbishers or repairers are obvious. their devices.73, 74 Carriers Which parts of the supply chain Carriers should be largely unaffected except benefit? in so far as they make money on mobile phone insurance, as greater repairability Manufacturers, refurbishers and repairers may decrease sales of insurance. This model is the most challenging for manufacturers: DIY repair provides very limited opportunities to make money from longer lived devices. Nevertheless, there are 19 Where’s the market? more widely repairable in a decentralised In the US and UK, greater repairability or DIY capacity, then maximum would appeal to those who are prepared to repairability, user satisfaction and brand repair their devices, which is currently loyalty could be ensured.84 around ten per cent of customers.80 As this increases the resale value of devices, it would benefit all customers, especially for those devices subject to slower upgrade cycles, like laptops and tablets.

In India, there is a stronger culture of repair and an expectation that devices should be reliable and easily serviceable.81 For consumer electronics this is done mainly through a large network of small traders across the country, though increasingly it is also offered by branded service centres.82

For example, Micromax has started to compete on repair speed, aiming to reduce the turnaround time to less than seven days from the current 15 by tripling the number of its centrally run service centres and piloting a home pick-up and drop off service.83

India’s geography, consumers’ preferences for quick turnaround times on repair and the prevalence of informal face to face interactions, mean that, if devices were 20 3 Market opportunities in the US, UK and India Which circular electronics models suit the characteristics of US, UK, and Indian markets? This chapter outlines the most salient characteristics of US, UK and Indian markets for the circular economy models US UK India outlined in the previous chapter. It provides 1 Enables growth in a saturated Enables growth in a saturated Enables redistribution of US and more detail on devices and market Software led longevity market market UK devices in India opportunities to inform companies exploring how to expand their circular 2 Accesses a large pool of reusable Accesses a large pool of reusable Enables cascaded use of US and economy activity in both mature and Better reuse premium devices premium devices UK devices in India emerging markets.

3 Addresses common hardware Addresses common hardware Addresses common hardware US and UK markets Minor modularity failures and uses existing logistics failures and uses existing logistics failures; may require new logistics Smartphones Market saturation, slowing technology 4 Dependent on the availability of High population density and good Niche use only Cloud offloading fast data networks network infrastructure change and a slowing upgrade cycle are an opportunity for longer lived devices and greater reuse. 5 Requires device exports for Requires device exports for Enabled by hardware Parts harvesting and remanufacturing remanufacturing standardisation in budget devices US and UK markets have high smartphone remanufacturing and low labour costs penetration levels which are predicted to reach saturation within the next five years. 6 Attractive to some consumers Attractive to some consumers Builds on existing infrastructure In the UK, 61 per cent of adults own a DIY repair and practice smartphone.85 Ownership levels are similar in the US at 58 per cent.86 In the UK, forecasts suggest 90 per cent sometime between mid-2016 and the end of 2017.87

Evidence from saturated markets like Japan, where 97 per cent of mobile subscribers have smartphones, suggests price 22

competition will sharpen: “[Retailers] get will disappear: two thirds of UK prepaid consumers tend to have longer two types: “the branded side, which is aggressive on pricing, and then when the smartphone users own Apple and Samsung upgrade cycles, and the US has seen a rise slowing, and the low cost which is excitement fades, they move on to the next devices. But even premium devices may in prepaid plans, which may slow the continuing to grow… The branded side is hit.” Budget models are already seeing struggle to maintain premium prices.97 pace of upgrades.102, 103 struggling because it’s already taken the low strong sales in the US and UK.88 hanging fruit of people who had netbooks, Taken together, market saturation and the Tablets who moved swiftly to tablets.”107 Tablet Ownership patterns show significant slowing pace of technology change for The slowdown in demand for premium refresh cycles are roughly two and a half differences in take-up across age groups. high end models suggest that the next tablets, alongside strong demand for low years but are predicted to lengthen, in the For example, 88 per cent of 16-24 year round of smartphone sales could be served cost tablets suggests reused premium same way as PCs and laptops.108, 109 olds owned smartphones in 2014 in the by lower cost, lower specification, tablets could displace new low cost ones. UK, compared to 14 per cent of those over second-hand devices. Laptops 65.89 The pattern is similar for US The sale of tablets in both markets is A saturated market suggests enabling consumers.90 This suggests that older and The structure of the carrier market is sharply on the rise. 44 per cent of laptop longevity is the best strategy. less well off consumers are the next reinforcing this opportunity. Smartphone households in the UK had a tablet in 2014, potential markets for smartphones.91 replacement rates are influenced by the up from 24 per cent in 2013.104 In the US, Laptops are still the most popular device in However, the majority of these consumers carrier refresh cycle, which are slowing in ownership grew from three per cent in the US and UK, with penetration rates of 63 identify a lack of need or relevance for the US and UK. Most customers in the US 2010 to 42 per cent in 2014.105 per cent in the UK and 81 per cent in the new smartphone features, saying “they (75 per cent) and UK (58 per cent) are on US.110, 111 Although growth has flatlined, and don’t think they’ll make use of the postpaid contracts and, in the US, contract As with smartphones, there is a marked sales are declining.112 Samsung has advanced features, or think they’ll find it periods have moved from 18 to 22 months, difference between age groups, with the announced it will stop selling laptops in too complicated.”92, 93, 94 to match the UK’s 24 months.98, 99 over 65s being an untapped market, and Europe.113 variation amongst socioeconomic groups, As hardware innovation slows, competition At the same time, US and UK carriers are with 26 per cent of US households earning There is more limited variation between among manufacturers based on now offering early upgrade options, after under $30,000 owning a tablet compared ownership across age groups, and more technological features decreases in 12 or even six months, which rely on the to 65 per cent of households with income limited socioeconomic differences, with 74 importance.95 Price is an important driver: device being traded-in, creating a pool of above $75,000, suggesting price is an per cent of ABC1s in the UK owning the top selection criterion for buying lightly used devices available for reuse.100, 101 important restraint on ownership.106 laptops compared to 50 per cent of mobile devices in both markets is “value for C2DEs.114 Laptop upgrade cycles are just money” (UK 28 per cent and US 30 per On the prepaid side of the market, Global research from Strategy Analytics over three years.115 cent).96 This doesn’t mean premium devices countries with higher numbers of suggests the tablet market is separating into 23 The Indian market centralised repair network operated by Smartphones specification devices, with increased major manufacturers.117 The premium market is saturated, but penetration being caused by prices falling Reuse in India low smartphone penetration suggests even further, eg smartphones costing less Growing demand for low specification, As there is huge demand for cheap and low second-hand premium devices from the than $100 or even less than $50.124 cheap and used models of consumer specification devices, the second-hand developed world could compete with Budget Indian manufacturers, like electronics is mediated through a market is likely to continue to grow and, mid-tier and budget devices. Micromax and Karbonn, have also heterogeneous, mostly decentralised without other interventions, will remain enjoyed rapid success and Micromax now distribution system. informal and decentralised. India has millions of potential first time closely rivals market leader Samsung. buyers of mobile devices. Smartphone Cheap devices achieve low costs through Reuse happens efficiently in India, mostly There is some indication, however, that a growth rates have been the highest in the generic components and larger scale in small shops through informal, centralised resale market may develop. In Asia Pacific region, with a year-on-year production, which may contribute to decentralised networks, but increasingly India, carriers don’t tend to offer subsidies smartphone shipment growth of over 186 greater potential for circular use.125 also online, again mostly through peer to for purchasing phones with plans, though per cent in the first quarter of 2014.119 peer markets like quikr.com rather than Reliance mobile has just introduced a Tablets central vendors like Gazelle in the US. subsidised iPhone deal, creating a structure There is still only ten per cent smartphone Very cheap devices with limited internet more like the US market. penetration of the mobile market, and connectivity are the norm, meaning Devices are more efficiently recovered than projections indicate rapid growth rates will second-hand premium devices may have in the developed world. Many fewer devices India’s legislation already places continue, especially in urban areas.120, 121 a niche in the market. are left stuck in drawers. Used high end responsibility on producers to make devices are in highest demand, but there is options available for consumers to return Due to low levels of overall wealth and high Tablets are less popular in India but are a large market for used, budget devices in devices, and some are offering buyback inequality, the premium market is already seeing rapid growth; again this is most working condition, even though these schemes, led by a desire to increase saturated. Apple has less than five per cent pronounced in the cheapest segments of depreciate faster than premium products upgrade cycles rather than to recover any market share, and Android dominates 90 the market. Few people have access to like the iPhone.116 value from old devices.118 This could tie in per cent of sales.122 Cheap models have been broadband and 90 per cent of those well to centralised repair systems being driving growth, with the sub-$200 accessing the internet do so on A decentralised repair market works in introduced by OEMs like Micromax (see category contributing about 78 per cent of smartphones and tablets.126 Rural areas still conjunction with the informal resale model six on page 19), to provide market growth in early 2014.123 have very limited access to 3G networks market. Broken devices are repaired and opportunities for a company to reuse and have seen much slower uptake rates. As refurbished, while defunct devices are components. The majority of future growth will of August 2013, Vodafone had only stripped and sold for parts. There is also a continue to be in low end, low upgraded 15 per cent of its 9,000 cell sites 24 in Uttar Pradesh to support 3G services.127 markets and sending them for reuse in The government is promoting internet emerging markets. access by subsidising the development of a very cheap tablet, which will be available This poses a challenge: increasing for INR 1,500 (£14).128 second-hand exports to India could exacerbate India’s e-waste problem for Laptops genuinely end of life devices. Indian fears Limited penetration, as smartphones and of becoming a dumping ground for tablets are the preferred devices. e-waste have led to a partial block on imports of used computers and proposals Laptops are less widespread, with users to limit imports of other used electronics.130, 131 who can only afford one device more often opting for a smartphone or a tablet. Budget Adopting the reuse and remanufacturing laptops have been available for some time focused circular models suggested in this but, with prices starting at £150 for the report will reduce the total number of cheapest devices, they are nowhere near as devices reaching the end of their useful affordable for most consumers.129 Lack of life, as second-hand devices displace new reliable internet access other than by devices. The logistics networks developed mobile data may also limit uptake. As such, for the six circular business models we these devices are much less relevant for the have described could help to ensure that Indian market. end of life devices are collected for recycling. However, this alone will not The problem with e-waste solve the major environmental and health Existing reuse markets for electronics hazards associated with inadequate are global, with a substantial fraction of recycling facilities in emerging markets. lower specification devices being sent to Companies making and marketing mobile the developing world. A number of the devices, new or used, have a responsibility circular economy models outlined in this to develop recycling infrastructure in report could involve capturing older emerging markets. premium devices from developed 25 4 The benefits of a circular economy for smart devices

There are many good reasons to adopt a Attracting new customers Upgrades are slowing in mature markets, and are slow circular economy model for consumer in emerging markets132,133,134 electronics. Three of the most important “We have more people that are able to join are: the party when we have a trade-in, because in essence it winds up being used 2007 1 Consumer demand and technology by...somebody else in that country that is 2008 change have created a new market very price-sensitive, or somebody in a USA phones 2009 2010 opportunity. different country” 2012 136 Tim Cook, Apple CEO 2013 2 Circular economy models reduce US & UK business risks. In India Apple sells older generation Laptops iPhones, including the four year old iPhone 0 1 2 3 4 5 6 7 8 9 3 Keeping devices in use for longer 4 and 4s models. Katyayan Gupta, an analyst Years significantly reduces environmental at Forrester Research in New Delhi explains impacts. that “Indians want to show their status, so people want Apple. It doesn’t matter if it’s a New market opportunities two year old phone. It’s an Apple at the end 2010 Across developed markets, the pace of of the day.”137 India phones upgrades for smartphones and laptops is UK phones slowing. Businesses increasingly have to As the research firm Bernstein points out, it USA phones compete on price and user experience is in Apple’s interest to support trade-in rather than impressive hardware to attract programs as a source of second-hand 0 1 2 3 4 5 6 7 8 9 and retain customers. devices from a software ecosystem Years perspective, “as… the vast majority Value for money is the most commonly [emerging market] consumers cannot cited factor for customers purchasing new afford iPhones and are adopting devices in the US and UK, and circular Android.”138 Offering used devices enables economy business models provide two carriers and manufacturers to engage major opportunities to demonstrate value customers with their brand who could not for money.135 afford a new device. 27 Our interviews with the IT asset disposal and refurbishment to ensure a good Yesterday’s flagship can out compete today’s best seller industry suggest that emerging market customer experience. consumers have a preference for developed Samsung Galaxy SIII, available May 2012 Moto E, available May 2014 market brands, provided they compete on The other lesson from the car market is that price. Moreover, it’s not just emerging resale value influences purchasing market customers. Laptop and tablet decisions. Actions to increase resale value, ownership amongst the lowest for example making devices more socioeconomic groups in the UK is just repairable, can work in a manufacturer’s over half that of the highest (two thirds in favour even if they don’t remanufacture: Display Display the case of smartphones), so there are large “competition from an independent Resolution Resolution 720 x 1280 pixels 540 x 960 pixels sections of developed markets that could be refurbisher has both a positive (resale value 139 density Pixel density targeted with lower cost devices. effect) and a negative (cannibalisation of 306 ppi 256 ppi new product sales) impact on the OEM’s Camera Camera Second-hand flagship devices are already profit. [However] the resale value effect can 8 megapixels 5 megapixels competitive with mid to low tier dominate and the OEM can benefit from Hardware Hardware smartphones: the Moto E has been a the existence of an entrant.”141 IBM and HP Processor Processor Quad core 1400 Quad core 1200 runaway success, in part because it retails already facilitate server resale and secondary MHz ARM, Cortex-A9 MHz ARM, Cortex-A7 142 for £90 ($130). But the two year old use, and benefit from doing so. System Memory System Memory Galaxy S3 has slightly superior 1024 MB RAM 1024 MB RAM specifications, and sells on eBay for Data Data £70-£140. HSDPA+(4G) 21.1Mbit/s HSDPA+(4G) 21.1Mbit/s HSUPA 5.76 Mbit/s, HSUPA 5.76 Mbit/s, UMTS, EDGE, GPRS UMTS, EDGE, GPRS Lessons from the car industry Price Price As selling on old devices becomes the £70 to £140 £90 norm, a trade-in service will increase the likelihood of customers remaining with their current brand or service provider.140 Technology companies could learn from the car market, where trade-in is routine, and consider providing in-house repair 28 Reducing business risks Demand for neodymium will outstrip These factors have made self supply through Most CO2 emissions come from The circular economy helps to reduce three supply recycling common in industry. manufacturing149 core business risks: market risk, regulatory For example, Honda recovers rare earths risk and the cost of goods sold. Used 250,000 from the battery packs in its hybrid vehicles Average smartphone devices are already being sent to customers for reuse in new Honda cars, in part due to End of life 146 for insurance returns and warranty claims, 200,000 supply concerns. Similarly, Dell recovers 2% Forecast demand 147 Use lowering warranty costs. But developing for neodymium plastics from the old electronics it collects. 19% supply chains to recover unwanted devices 150,000 Although platinum group metals, copper Distribution and designing devices that last longer and s and bulk metals can be recovered through 6% Manufacturing nne

To 75% are more easily repaired helps to mitigate 100,000 shredding, yields are low. For many materials other risks. Most immediately, expanding that are used in smart devices, disassembly reuse will reduce the market risk of focused recovery is likely to make the most 50,000 cannibalisation, given predictions that used Forecast production sense. More exotic materials, like neodymium Average tablet smartphones sales will rise from 53 million of neodymium which faces supply issues (see left), need to 0 End of life to 257 million between 2013 and 2018. be separated prior to recycling; these could 2% 30 Use 2050 2012 20 be more readily recovered if hardware was 20% It also helps to address regulatory risk. adapted to make disassembly easier. Distribution E-waste is the fastest growing waste stream 6% Manufacturing globally and policy makers are increasingly and materials for new devices. This new Lowering environmental impact 73% passing on the costs of the associated social supply is insulated from: Unlike many other electronics, mobile and environmental impacts to retailers and devices are optimised to run on battery environmental risks, like those arising manufacturers through producer • power. Their low energy use means the from unsustainable tin mining in responsibility legislation.143 majority of mobile devices’ environmental Average laptop Indonesia;144 impact, between 60 and 85 per cent, arises End of life 148 More circular models will help defray • conflict risks, including those regulated from the manufacturing process. This 0.37% producer responsibility costs and can under the US Dodd Frank Act; makes product lifetime the key Use 27% contribute to reducing e-waste impacts. determinant of overall environmental • commodity price volatility; and Distribution impact, because a device that lasts longer 6% 145 Manufacturing Used devices can also provide a low risk, • short term supply disruptions. spreads its manufacturing impacts over a 67% and potentially lower cost, source of parts longer time period. 29 Keeping devices in use cuts emissions The circular economy models in this report When is repair no longer economic150 assume that longer lasting devices displace % CO2 the purchase of new devices. Where this reduction happens, even extending the lifetime of a device by one year can cut the overall Smart Tablets Laptops carbon footprint of device usage by phones iPhone between 19 and 31 per cent. Android phone 0% Broken iPad 1 year life Extending the life of devices to four and a 10% extension half years for smartphones and tablets, or Android tablet seven years for laptops cuts their impacts by iPhone 20% up to half. Resale values suggest that there is Android phone a market for these devices for at least this Cosmetic 30% amount of time, as outlined in chapter two. damage iPad Android tablet 40% Even for cosmetically damaged devices, 0 1 2 3 4 Maximum economic repair makes economic sense for over 50% life extension three years, rising to as much as six years Years after sale for iPhones. It also makes environmental sense: replacing a screen and battery on a longer lived device only slightly reduces the overall carbon savings from life extension for smartphones (from 53 per cent to 46 per cent), although the carbon cost of replacement is higher for tablets (33 per cent to 20 per cent) and laptops (44 per cent to 31 per cent) due to their larger screens.

30 The industry’s environmental impact Second, smaller devices have higher carbon Our analysis suggests that the industry had A circular economy approach to mobile intensity, meaning the shift from desktops, emissions substantially greater than the devices can help to mitigate the rising to laptops, or even to smartphones, will not whole of the UK’s transport sector in 2013 152 environmental impacts of mobile devices. automatically reduce the environmental (131 Mt CO2e). Similarly, the amount of These impacts are being driven up by two footprint of IT equipment overall.151 water used by the industry could meet the factors. First, embodied emissions appear to domestic needs of 38 million people each be rising as specifications for new The global footprint of the industry is year (1,929 billion litres).153, 154 generations of the same product increase, already significant, and will rise as the as data from Apple’s lifecycle assessments market grows and the carbon intensity of shows (see below). each device rises.

Embodied carbon of Apple devices rises as specifications increase Smaller Apple devices have higher carbon intensity

180 700 12 iPad retina display iPad air 160 600 10

140 iPad air 2 500 8 120 400 iPad 3 6 100 300

2e iPhone 6 4 Mass (kg) CO 80 200 kg

60 iPad 1 iPhone 5 (kgCO2e/kg) intensity Carbon 100 2 iPad 2 iPhone 5s 40 0 0 iPhone 3GS 20 iPhone 4s

iPhone 4 iPhone 6 iPad air 2 iPad 0 mini 3 iPad iPhone 6 plus 21.5 inch iMac inch 21.5 MacBook Air 11" MacBook MacBook Air 13" MacBook MacBook Pro 15" Pro MacBook MacBook Pro 13" Pro MacBook Retina 5K display 5K Retina 2009 2010 2011 2012 2013 2014 2015 with iMac 27-inch 31 Beyond reuse: which components Screens are somewhere in the middle. Embodied carbon vs mass of components matter most? Although the proportion of embodied in three mobile devices158 Companies choosing to redesign their carbon in screens is small for a smartphone products for repair or remanufacturing can (11 per cent), it is larger for tablets (39 per 100 100 minimise the carbon footprint of their cent)and laptops (30 per cent).155, 156, 157 activities by keeping highly carbon Given the high frequency of damaged 80 80 e % e % 2 intensive components in use. screens, manufacturers should consider 2 making the LCD and glass separately 60 60 Mass % Mass % kgCO Chips (ICs) are the biggest source of replaceable, as the glass has lower kgCO 40 40 embodied carbon (around 35 per cent in embodied carbon than an LCD or AMOLED all devices), so these should be kept in display. Even so, screen replacement still 20 20 use the longest to maximise makes sense in environmental terms. environmental benefit. 0 0 Overall, that companies can significantly Apple iPod Touch 8gb third generation HP 530 laptop, 16”(2009) The power supply has the second largest cut the environmental impacts of mobile (2009) –proxy for iPhone proportion of embodied carbon, especially devices by enabling longer lived devices, in smartphones (30 per cent). Some through reuse, repair, remanufacturing, 100 Circuit boards (excluding ICs) operators, like O2, have already moved or even selective parts harvesting of high 80 Integrated towards not shipping a new power supply carbon components. circuits

as the default, while EU regulations e % Power supply 60 2 encourage charger standardisation. Battery Mass % kgCO Display In contrast, batteries (two to three per cent 40 Casing embodied carbon) and casings (five to Other 20 seven per cent embodied carbon) have lower carbon impact so could easily be 0 swapped to give the rest of the device a Apple iPad 8gb Wi-Fi first generation (2009) longer lifetime.

32 Annex: methodology

Environmental impact We determined the baseline environmental We also calculated the carbon savings Estimates vary widely on the total impact of a year of device use by dividing incurred when screens and batteries were embodied carbon, water and energy in the total impact in the baseline use scenario replaced, as these are the most common electronics devices, which analysts attribute by the baseline lifetime. Alternative repairs and would probably be needed in a to different accounting methodology and scenarios were generated by extending the four and half or seven year device lifetime. the absence of regulatory standards, as lifetime: first through a one year extension, much as differences between devices. and then longer, to reach four and half While data at a component level was not years for smartphones and tablets, and available for water or energy use, Data about product lifecycle impact for seven years for laptops. proportions of embodied carbon for water and energy for smartphones, components were provided by Teehan and tablets and laptops were provided by Although our analysis showed the multiplied by average embodied Google. Our embodied carbon estimates economic lifetime of most devices to be manufacturing emissions to determine the are averages of data from various five or more years for tablets and embodied carbon in screens and batteries.160 published sources: smartphone data smartphones and longer for laptops, we comes from Nokia, Apple, Sony, Samsung used a conservative estimate, rather than The disused components then incurred and Fairphone; tablet data comes from the maximum possible lifetime, when end of life emissions, by assuming the Apple and independent analysis using the modelling the environmental benefits of component contribution to end of life ecoinvent lifecycle analysis database; lifetime extension. emissions was proportionate to their laptop data comes from Google, Apple, contribution to total emissions. Dell and a study from the EU’s Joint Although the impacts from the use phase Research Centre. increased with a longer lifetime, the much greater manufacturing impacts were spread Environmental benefits from life over a longer period and so reduced the extensions overall impact per year. Our baselines were 1.81 years of use for smartphones, 2.55 years for tablets and The percentage savings were calculated by 3.11 years for laptops, based on averaging dividing the yearly impacts of a device used the data of available estimates of current for the longer period by the yearly impacts device lifetimes.159 of a device used for the baseline period and subtracting the result from one. 34 Calculation of per device savings Environmental burden of 2013 sales for arising from lifetime extension manufacturing only

Years of use Embodied carbon Primary energy Water consumption Sales 2013 Global CO2e burden Global water per cent saved per cent saved per cent saved (millions) of 2013 sales burden of 2013 (manufacturing sales only) (MtCO2e) (manufacturing Smartphones only) (billion litres) Baseline 1.81 0% 0% 0% Smartphones 990 31.91 93.11 1 year life extension 2.81 31% 27% 29% Tablets 186 12.94 79.24 Longer economic lifetime 4.50 53% 45% 49% Laptops 316 86.54 1,757.37

Longer life with screen & battery 4.50 46% n/a n/a Total 131.39 1,929.72 replacement Tablets Baseline 2.55 0% 0% 0% 1 year life extension 3.55 21% 21% 23% Longer economic lifetime 4.50 33% 32% 35% Longer life with screen & battery 4.50 20% n/a n/a replacement Laptops Baseline 3.11 0% 0% 0% 1 year life extension 4.11 19% n/a 18% Longer economic lifetime 7.00 44% n/a 41% Longer life with screen & battery 7.00 31% n/a n/a replacement 35 Deriving the economic lifetime Cost of repair The price repaired devices sold for was If a device is no longer wanted by its first This varies by device (see below). Average assumed to be equal to devices requiring owner, a resale company can only exploit repair costs were from WRAP.163 no repair. its value if it can acquire the device, perform any necessary repairs, repackage Resale price The economic lifetime of broken devices and then resell it for a profit. The point at This was determined by the price While broken devices are cheaper to which the costs incurred surpass the refurbished devices sold for on eBay. Data acquire, on average they require more resale value is deemed the ‘maximum was collected via Terapeak over a three repairs and some may not be repairable at economic lifetime’. month period. all. Using data provided by WRAP, we estimated the percentage of broken devices Cost of acquisition (all devices) Net price after discounting for fallout able to be repaired to be around 64 per This was estimated as the average price that Broken devices only (see below). cent, though this varied with the age and a recycler or reseller would pay a customer type of the device. Devices not able to be for a used device. This varies between nearly The economic lifetime of ‘good’ devices repaired incurred recycling rather than nothing for old, broken or low end devices, All devices in this category were assumed to repair costs. to over $400 for barely used recent models be in good working order and needing no in excellent condition. Data was collected repairs. The only costs incurred were Broken but repairable devices were from sellcell.com and Gazelle.com for a acquisition, checking, cleaning, storage, assumed to need several superficial repairs range of different devices of different ages. repackaging and dispatch. and additionally several major repairs (replacement of screen, digitiser, webcam, Cost of checking, cleaning, storage, The economic lifetime of devices needing main board, CMOS battery, etc.). The repackaging and dispatch (all devices) superficial repair number of repairs needed also varied with Average refurbishment costs for tablets and In this category, all devices needed the age of the device. laptops were provided by WRAP.161 superficial repairs (replacement of batteries, charger or casing). The number of As not all devices in this category were Fallout (broken devices only) superficial repairs was estimated to increase repairable, not all could be resold for A percentage of broken devices cannot be slightly with the age of the device. revenue. To reflect this we lowered the repaired, which grows with the age of the resale price to around 64 per cent of the device. Data was provided by WRAP, with price assumed for devices in the other Green Alliance estimates.162 two categories. 36 Endnotes

1 Landfill figures from. US Environmental Protection Agency 12 Rohin Dhar, 8 February 2012, ‘Your phone loses value pretty 23 In the UK six in ten admit that new technology “always” or survey’, India infoline news service, www.indiainfoline.com/ Office of Resource Conservation and Recovery, 1 May 2011, fast (unless it’s an iPhone)’, priceonomics, priceonomics. “sometimes” confuses them, and the same proportion say article/news/indians-have-a-habit-of-stocking-goods-they- Electronics waste management in the United States through com/phones/ they wait until someone they know gets new technology no-longer-use-olx-crust-survey-5849260571_1.html 2009 The , www.epa.gov/waste/conserve/materials/ecycling/ 13 Cost of coding Cyanogenmod, www.ohloh.net/p/ before they consider it themselves. 7 August 2014, 32 Toni Sacconaghi, 7 August 2013, The long view: the used communications market report docs/fullbaselinereport2011.pdf cyanogenmod/estimated_cost; cost of coding LXDE: www. , Ofcom, p 38, stakeholders. smartphone market, part 1: what, where and how big?, 2 Gregg Keizer, 24 July 2014, ‘The other Apple economy: $2b in ohloh.net/p/lxde/estimated_cost, accessed 1 June 2014 ofcom.org.uk/binaries/research/cmr/cmr14/2014_UK_ Bernstein Research, p 9 Computerworld CMR.pdf devices on ebay’, , www.computerworld. 14 JR Raphael, 8 February 2012, ‘Surprise! The Android 33 Export costs are cheap in absolute terms as ships are often com/article/2490396/apple-mac/the-other-apple- upgrade challenge has been answered’, Computerworld, 24 The World Bank, 2013, ‘Population ages 65 and above (% of returning empty after exporting goods, but also in relative data.worldbank.org economy---2b-in-devices-on-ebay.html www.computerworld.com/article/2475858/android/ total)’, /indicator/SP.POP.65UP.TO.ZS/, terms compared to high costs of sorting, disassembling and 3 NextWorth, 10 December 2014, ‘NextWorth estimates the surprise--the-android-upgrade-challenge-has-been- accessed 1 November 2014 recycling phones in developed world. See: Djahane 2014 US Smartphone trade-in market value potential to be answered.html 25 Ron Amadeo, 7 October 2014, ‘Testing a $35 Firefox OS Salehabadi, 25 March 2013, Transboundary movements of more than $3 billion’, PR Newswire, finance.yahoo.com/ 15 See section three of this report, US and UK market phone—how bad could it be?’, Ars Technica, arstechnica. discarded electrical and electronic equipment, Solving the news/nextworth-estimates-2014-u-smartphone-130000177. characteristics, p X com/gadgets/2014/10/testing-a-35-firefox-os-phone-how- E-Waste Problem (StEP) Green Paper, p 27, www.step- html bad-could-it-be/1/ initiative.org/tl_files/step/files/5.%20StEP%20Task%20 16 Tim Bajarin, 7 May 2012, ‘6 reasons Apple is so successful’, 4 WRAP, 12 December 2013, Switched on to value, www.wrap. 26 Quentin Fottrell, 13 February 2014, ‘Consumers hoard $13 Forces/5.1%20TF%201%20Policy/5.1.4%20Projects/ TIME, techland.time.com/2012/05/07/six-reasons-why- Transboundary%20Movement%20of%20WEEE/ org.uk/sites//wrap/Switched%20on%20to%20 apple-is-successful/ billion in old iPhones’, MarketWatch, www.marketwatch. Value%2012%202014.pdf com/story/consumers-hoard-13-billion-in-old- StEP_GP_TBM_20130325.pdf 17 Nektarios Oraiopoulos, Mark Ferguson and L Toktay, 1 May iphones-2014-02-12 34 Toni Sacconaghi, 7 August 2013, The long view: the used 5 Private correspondence with the IT asset disposal 2012, ‘Relicensing as a secondary market strategy’, company RDC 27 13 per cent of consumers asked why they haven’t sold smartphone market, part 1: what, where and how big?, Management science, vol 58, issue 5, p 6, www.prism. Bernstein Research, p 9 6 Toni Sacconaghi, 7 August 2013, The long view: the used gatech.edu/~bt71/articles/OFT.pdf their old phone are concerned about their personal smartphone market, part 1: what, where and how big?, information, while 17 per cent haven’t wiped their data 35 Green Alliance private correspondence with several IT asset 18 “At Priceonomics, we firmly believe that resale value is the “yet”. Lookout, 29 November 2012, ‘End #phonehoarding disposal companies. Bernstein Research, p 2 best objective indicator of product quality”, quoted from: with Lookout’, blog.lookout.com/blog/2012/11/29/ 36 Bianca Vázquez Toness, 8 August 2014, ‘Indians flaunt 7 Toni Sacconaghi, 7 August 2013, The long view: the used Rohin Dhar, 8 February 2012, ‘Your phone loses value pretty end-phonehoarding-with-lookout/ smartphone market, part 1: what, where and how fast (unless it’s an iPhone)’, priceonomics, priceonomics. 4-year-old iPhones as Apple builds appeal: tech’, Bloomberg, big?,Bernstein Research com/phones/ 28 These figures are likely to be the maximum size of the www.bloomberg.com/news/2014-08-07/indians-flaunt-4- market, and would only be realised if devices were efficiently year-old-iphones-as-apple-builds-appeal-tech.html 8 Data from German consumers, which we believe is 19 Roger Entner, 23 June 2011, International comparisons: the repurchased. From: Sellmymobile.com Mobile Mountain representative of most wealthy world markets. Corinna handset replacement cycle, Recon Analytics, mobilefuture. 37 ‘Samsung galaxy SIII vs. Moto E - phone specs comparison’, Study referred to in: Dawn Smith, 14 February 2013, PhoneArena, www.phonearena.com/phones/compare/ Fischer (et al), 16 June 2014, Preparatory study to establish org/wp-content/uploads/2013/02/mobile-future. ‘Phone-hoarding brits sit on £6.86 billion mobile mountain’, the ecodesign working plan 2015-2017 implementing publications.handset-replacement-cycle.pdf Samsung-Galaxy-S-III,Motorola-Moto-E/phones/6330,8654, PRWEB UK, uk.prweb.com/releases/2013/2/ accessed 1 November 2014 directive 2009/125/EC: draft task 3 report, Deloitte, p108, 20 According to data from Bernstein in 2011-2012, ten per prweb10422613.htm; and Sellcell.com Mobile Mountain www.ecodesign-wp3.eu/sites/default/files/ cent of customers traded in their old device when buying a Study conducted by research agency OnePoll, referred to in: 38 Aaron Smith, 30 November 2012, The best (and worst) of Ecodesign%20WP3_Draft_Task_3_report_20140616_1500. new one, versus 23 per cent in 2011-2012. See: Toni Josie Cruz, 14 February 2014, ‘The mobile mountain grows: mobile connectivity, Pew Research Center, p 14, www. pdf Sacconaghi, 7 August 2013, The long view: the used Americans hoard $47 billion in unused mobile phones, 39 pewinternet.org/files/old-media//Files/Reports/2012/ 9 Used LG G2 and second-hand values from: glyde. smartphone market, part 1: what, where and how big?, percent more than last year’, PRWEB, www.prweb.com/ PIP_Best_Worst_Mobile_113012.pdf com/sell/LG-G2-32GB-Black-TMobile/12076356; glyde.com/ Bernstein Research, p 20 releases/2014/02/prweb11583191.htm 39 Those who agree with the statement “I love to buy new sell/LG-Nexus-5-32GB-Black-TMobile/12076573 accessed 1 21 Asif Iqbal Shaik, 8 August 2014, ‘The next big challenge 29 Sellmymobile.com Mobile Mountain Study, referred to in gadgets”. 1 August 2013, Communications market report June 2014 for Apple inc. (aapl) and Google inc. (googl): improve Toni Sacconaghi, 7 August 2013, The long view: the used 2013, Ofcom, p 87, stakeholders.ofcom.org.uk/binaries/ 10 Toni Sacconaghi, 7 August 2013, The long view: the used smartphone upgrade cycle’, dazeinfo.com, www. smartphone market, part 1: what, where and how big?, research/cmr/cmr13/2013_UK_CMR.pdf smartphone market, part 1: what, where and how big?, dazeinfo.com/2014/08/08/next-big-challenge-apple-inc- Bernstein Research, p 4 40 Toni Sacconaghi, 7 August 2013, The long view: the used Bernstein Research, p 11 aapl-google-inc-googl-improve-smartphone-upgrade- 30 Ibid smartphone market, part 1: what, where and how big?, cycle/ Bernstein Research, p 9 11 Android: as at November 3, 2014, developer.android.com/ 31 It appears that the growing Indian middle class retain gadgets about/dashboards/index.html ; : from 22 Dan Seifert, 26 June 2014, ‘With Android one, Google is much like the middle class in the developed world, so the 41 priceonomics, 8 March 2012, ‘The cost of cracking’, October 2014, winsupersite.com/windows-phone/ poised to own the entire world’, , www.theverge. trend for repair and reuse in India may decline as India grows priceonomics.com/phones/apple/ windows-phone-stats-october-2014 accessed 1 November com/2014/6/26/5845562/android-one-google-the-next- wealthier. See: 15 January 2014, ‘Urban Indians stocking an 42 Screen and battery repair as a proportion of all repairs. Kevin 2014 billion estimated Rs. 22,000cr worth of used goods: OLX crust Culligan and Brian Menzies, 29 March 2013, The value of 37 consumer electronics for trade-in and re-sale, WRAP, 51 ‘Buy Nokia shell for Lumia 520 - Microsoft store’, 61 Aaron Smith, 30 November 2012, The best (and worst) of Feng Wanga, Jaco Huisman, Christina EM Meskers, Mathias appendices, available on request, www.wrap.org.uk/ www.microsoftstore.com/store/msusa/en_US/pdp/ mobile connectivity, Pew Research Center, p 14, www. Schluep, Ab Stevels, Christian Hagelüken, 1 November 2012, node/18473 Nokia-Shell-for-Lumia-520/productID.283833500, accessed pewinternet.org/files/old-media//Files/Reports/2012/ ‘The best-of-2-worlds philosophy: developing local 43 Cat phones, 28 November 2013, ‘New research reveals 1 November 2014 PIP_Best_Worst_Mobile_113012.pdf dismantling and global infrastructure network for sustainable Waste mobile users want phones to have a longer than average 52 Those who don’t agree with the statement “I love to buy new 62 As of 30 November 2012, India had 736,654 base transceiver e-waste treatment in emerging economies’, Management battery life’, catphones.com/news/press-releases/ gadgets” . 1 August 2013, Communications market report stations (2G GSM & CDMA, and 3G). Of those, 96,212 (13 per , vol 32, issue 11, p 9, www.sciencedirect.com/ new-research-reveals-mobile-users-want-phones-to-have-a- 2013, Ofcom, p 87, stakeholders.ofcom.org.uk/binaries/ cent) provided 3G mobile and data services. Out of India’s science/article/pii/S0956053X12001407 longer-than-average-battery-life.aspx research/cmr/cmr13/2013_UK_CMR.pdf 640 districts, 610 districts were covered by 3G services. 67 It’s true that Android does not support dynamic hardware 44 According to Re-Tek data, only 18 per cent of laptop repairs 53 Cat phones, 28 November 2013, ‘New research reveals Sanjay Bafna, 21 December 2012, ‘India has 7,36,654 mobile today, Eremenko said, “The good news is that we’re Telecom Talk were for screen replacement, vs 47 per cent for hard drive. mobile users want phones to have a longer than average towers and only 96,112 BTS’s are 3G enabled !’, , Google”, from: Phil Goldstein, 16 April 2014, ‘Google wants Kevin Culligan and Brian Menzies, 29 March 2013, The battery life’, catphones.com/news/press-releases/ telecomtalk.info/india-has-736654mobile-towers-and-only- first Project Ara smartphone to go on sale in January 2015’, FierceWireless value of consumer electronics for trade-in and re-sale, WRAP, new-research-reveals-mobile-users-want-phones-to-have-a- 96112bts-are-3g-enabled/103422/ , www.fiercewireless.com/story/google- appendices, available on request, www.wrap.org.uk/ longer-than-average-battery-life.aspx 63 Paul Teehan and Milind Kandlikar, 7 May 2013, Comparing wants-first-project-ara-smartphone-go-sale- january-2015/2014-04-16 node/18473 54 Corinna Fischer (et al), 16 June 2014, Preparatory study to embodied greenhouse gas emissions of modern computing and electronics products, environmental science and 45 The trend with ultrabooks is towards ‘embedded’ batteries. establish the Ecodesign Working Plan 2015-2017 68 Richard Stallman, 19 September 2011, ‘Is Android really free technology The Guardian 15 August 2012, ULTRA-INCONVENIENT: with most new implementing Directive 2009/125/EC: Draft Task 3 Report, , vol 47, p 3,999, pubs.acs.org/doi/pdf/10.1021/ software?’, , www.theguardian.com/ ‘ultrabook’ laptops users can’t change the battery Deloitte, p108, www.ecodesign-wp3.eu/sites/default/files/ es303012r technology/2011/sep/19/android-free-software-stallman themselves, Electronics TakeBack Coalition, p 1, www. Ecodesign%20WP3_Draft_Task_3_report_20140616_1500. 64 For example, Toyota deploys used hybrid car batteries as 69 The automotive and aerospace markets include electronicstakeback.com/wp-content/uploads/Ultrabook- pdf grid storage for its car dealerships. Silvio Marcacci, 5 significant remanufacturing, but this is rarely explicit. report-Aug-2012.pdf 55 Nielsen, 1 February 2013, The mobile consumer: a global February 2013, ‘Toyota recycles hybrid batteries into energy Nicholas Morley, 29 October 2012, Materials security, CleanTechnica productivity and new business models 46 iPhone 3GS Display Assembly Replacement: Ben snapshot, p 17, www.nielsen.com/content/dam/corporate/ management systems’, , cleantechnica. , Centre for Eisenman, iFixit, www.ifixit.com/Guide/iPhone+3GS+Dis us/en/reports-downloads/2013%20Reports/Mobile- com/2013/02/05/toyota-recycles-hybrid-batteries-into- Remanufacturing and Reuse, cfsd.org.uk/site-pdfs/si12/ play+Assembly+Replacement/1554, accessed 1 November Consumer-Report-2013.pdf energy-management-systems/ presentations/day-1/10-25--Morley--Materials-Security,- 2014; HTC One Display Assembly Replacement: alcs99, 65 Disassemblability of devices varies widely. ‘Smartphone Productivity+New-Business-Models-v4--2-slides-per- 56 Andy Wolber, 5 November 2013, ‘Put Chromebooks in proper page.pdf iFixit, www.ifixit.com/Guide/HTC+One+Display+Assembl context: this is not a joke’, TechRepublic UK, www. repairability scores’, iFixit, www.ifixit.com/smartphone_ y+Replacement/19277, accessed 1 November 2014 techrepublic.com/blog/google-in-the-enterprise/ repairability, accessed 1 November 2014; ‘Tablet 70 Mike Ives, 6 February 2014, ‘In developing world, a push to Yale Environment 47 The iPad is sealed, while the Nexus 7 is designed to be put-chromebooks-in-proper-context-this-is-not-a-joke/ repairability scores’, iFixit, www.ifixit.com/Tablet_ bring e-waste out of shadows’, 360, Yale Repairability, accessed 1 November 2014; laptops School of Forestry & Environmental Studies, e360.yale.edu/ repaired. Dustin Benton, 5 July 2012, ‘What’s the difference 57 John Rath, 25 March 2014, ‘Titanfall taps windows azure between a circular and a linear economy? 1 mm’, Green historically were more disassemblable, though this has feature/in_developing_world_a_push_to_bring_e-waste_ cloud for low-latency gaming’, Data centre knowledge, www. ULTRA- Alliance Blog, greenallianceblog.org.uk/2012/07/05/ changed with ultrabooks: 15 August 2012, out_of_shadows/2736/ datacenterknowledge.com/archives/2014/03/25/ INCONVENIENT: with most new ‘ultrabook’ laptops users whats-the-difference-between-a-circular-and-a-linear- 71 Rohin Dharmakumar, 2 December 2013, ‘Can Micromax titanfall-taps-windows-azure-cloud-low-latency-gaming/ can’t change the battery themselves economy-1-mm , Electronics TakeBack become India’s leading smartphone maker?’, IBN Live, 58 Those who don’t agree with the statement “I love to buy new Coalition, p 5-6, www.electronicstakeback.com/wp-content/ 48 Julia, 1 May 2013, ‘iFixit community survey: the results are ibnlive.in.com/news/can-micromax-become-indias-leading- gadgets”. 1 August 2013, Communications market report uploads/Ultrabook-report-Aug-2012.pdf smartphone-maker/437322-55.html in’, iFixit, ifixit.org/blog/4631/ifixit-community-survey-the- 2013, Ofcom, p 87, stakeholders.ofcom.org.uk/binaries/ results-are-in/ 66 Current minimum wages differ by state, eg:176-274rupees per 72 Dave Lee, 5 December 2014, ‘Old laptop batteries could research/cmr/cmr13/2013_UK_CMR.pdf day in electronics (Bihar), www.paycheck.in/main/salary/ 49 Brook Lyndhurst Ltd, 1 July 2011, Public understanding of power slums, IBM says’, www.bbc.com/news/ 59 Yardena Arar, 18 November 2013, ‘Laptop buying guide minimumwages/bihar/minimum-wages-in-bihar-w-e-f-april- technology-30345221 product lifetimes and durability (1), Department for 2013: how to find the right notebook for you’, PCWorld, 1-2014-to-september-30-2014; 216-241 rupees per day in Environment, Food and Rural Affairs, p 51, randd.defra.gov. www.pcworld.com/article/211000/laptop-buying-guide. electronics (Haryana), www.paycheck.in/main/salary/ 73 Tim, 10 November 2012, ‘Toshiba laptop service manuals uk/Document.aspx?Document=Publicunderstandingproduc html minimumwages/haryana/haryana-minimum-wage-from-july- and the sorry state of copyright law’, Future Proof, www.tim. tlifetimes1_Finalpublishedreport.pdf 1-2014-to-december-31-2014. According to one study, as id.au/blog/2012/11/10/toshiba-laptop-service-manuals- 60 Michael S. Rosenwald, 16 January 2014, ‘Smartphones get and-the-sorry-state-of-copyright-law/ 50 The leading budget model has 30 per cent of the Windows more sophisticated, but their owners do not’, The labour costs rise to 1.26 €/h (676 rupees per day, an phone market as of December 2013. Ron, 5 January 2014, Washington Post, www.washingtonpost.com/local/ equivalent wage is expected by 2015 in China but somewhat 74 Bill Ray, 24 January 2011, ‘The cost of beating Apple’s ‘Nokia Lumia 520: exploring the world’s most popular smartphones-get-more-sophisticated-but-their-owners-do- later in India), only partial (rather than full) disassembly will shrewd screws? £2’, The Register, www.theregister.co. windows phone device ever’, WinBeta, www.winbeta.org/ not/2014/01/15/99d7e100-7a20-11e3-8963- be profitable and, once labour costs reach 2.95 €/h (1582 uk/2011/01/24/apple_screws/ news/nokia-lumia-520-exploring-worlds-most-popular- b4b654bcc9b2_story.html?hpid=z3 rupees per day, an equivalent wage is expected by 2026 in 75 Brook Lyndhurst Ltd, 1 July 2011, Public understanding of windows-phone-device-ever China), manual disassembly will not be profitable at all. See: product lifetimes and durability (1), Department for 38 Environment, Food and Rural Affairs, p 51, randd.defra.gov. 86 Pew Research Center, 2013, ‘Cell phone and smartphone us/en/reports-downloads/2013%20Reports/Mobile- 107 Charles Arthur, 16 October 2014, ‘Peak tablet: how will Apple uk/Document.aspx?Document=Publicunderstandingproduc ownership demographics’, www.pewinternet.org/ Consumer-Report-2013.pdf sell even more iPads?’, The Guardian, www.theguardian.com/ tlifetimes1_Finalpublishedreport.pdf data-trend/mobile/cell-phone-and-smartphone-ownership- 97 Charles Arthur, 27 April 2014, ‘How to keep on selling technology/2014/oct/16/apple-peak-tablet-ipad-ipad-air-pro 76 Julia, 1 May 2013, ‘iFixit community survey: the results are demographics/ smartphones when we’ve nearly all got one already’, The 108 Tablets have only been sold for four years so refresh cycles in’, iFixit, ifixit.org/blog/4631/ifixit-community-survey-the- 87 Charles Arthur, 30 April 2014, ‘The death of the featurephone Observer, www.theguardian.com/technology/2014/apr/27/ are uncertain. We averaged estimates provided by Jackdaw results-are-in/ in the UK - and what’s next’, The Guardian, www. smartphone-market-saturation-apple-samsung research, Consumer Intelligence Research Partners, HP, and 77 Kyle Wiens, 31 October 2012, ‘One way to create theguardian.com/technology/2014/apr/30/featurephone- 98 Compare China, 21 per cent; India, five per cent; and Italy, TabTimes, to arrive at an estimate of 2.55 years. American jobs: fix our 5 million tons of out-of-use smartphone-uk- 16 per cent. ‘GSMA intelligence – data’, GSMA 109 Steve Daniel, 1 July 2013, United States PC, tablet, & mobile electronics’, iFixit, ifixit.org/blog/3654/one-way-to- 88 For example, Moto G launched in November 2013, Intelligence, gsmaintelligence.com/data/, accessed 29 phone market size and forecast, July 2013, Daniel Research create-american-jobs-fix-our-5-million-tons-of-out-of- boosting the manufacturer from “nowhere in Europe” to October 2014 Group, p 5, www.danielresearchgroup.com/LinkClick.aspx?f use-electronics/ six per cent of UK smartphone sales. Gareth Beavis, 16 99 Toni Sacconaghi, 7 August 2013, The long view: the used ileticket=1ejALRMAUbk%3D&tabid=122&mid=522 78 Dell, ‘Interactive video teardowns’, support.dell.com/ May 2014, ‘The next smartphone war is going to be smartphone market, part 1: what, where and how big?, 110 7 August 2014, The communications market report, Ofcom, p support/topics/global.aspx/support/csr/interactive_ cheap, not nasty’, techradar, www.techradar.com/news/ Bernstein Research, p 4 271, stakeholders.ofcom.org.uk/binaries/research/cmr/ video_teardowns, accessed 1 November 2014 phone-and-communications/mobile-phones/the-next- cmr14/2014_UK_CMR.pdf smartphone-war-is-going-to-be-cheap-not- 100 Eric Ravenscraft, 23 September 2013, ‘Are early upgrade 79 1 June 2011, ‘Case study: specifying durability and repair in nasty-1248451 plans worth it?’, lifehacker, lifehacker.com/are-early- 111 Deloitte’s Digital Democracy Survey, referenced in: 2 April vacuum cleaners’, WRAP, p 7, www2.wrap.org.uk/ upgrade-plans-worth-it-1369868915 2014, ‘Half of us millennials own a laptop, smartphone and 89 7 August 2014, The communications market report, Ofcom, p downloads/Dyson_Case_study_AG.aa37bdc4.11040.pdf 101 O2, 12 April 2014, ‘O2 launches new tariff allowing customers tablet’, MarketingCharts, www.marketingcharts.com/ 110, stakeholders.ofcom.org.uk/binaries/research/cmr/ online/half-of-us-millennials-own-a-laptop-smartphone- 80 C Lee-Woolf, O Hughes, O M Fernandez, and J Cox, 11 cmr14/2014_UK_CMR.pdf to get the latest phone whenever they want’, news.o2.co. December 2012, Engagement with re-use and repair services uk/?press-release=o2-launches-new-tariff-allowing- and-tablet-41706/ in the context of local provision, Brook Lyndhurst and Zero 90 Pew Research Center, 2013, ‘Cell phone and smartphone customers-to-get-the-latest-phone-whenever-they-want 112 Year on year sales declined by seven per cent in the fourth ownership demographics’, www.pewinternet.org/ Waste Scotland, p 45, www.brooklyndhurst.co.uk/ 102 Roger Entner, 23 June 2011, International comparisons: the quarter of 2013. Mohana Ravindranath, 11 February 2014, download/201/d92687a5/Brook%20Lyndhurst%20-%20 data-trend/mobile/cell-phone-and-smartphone-ownership- ‘PCs lumber towards the technological graveyard’, The demographics/ handset replacement cycle, Recon Analytics, p2, Re-use%20and%20repair%20in%20context%20of%20 mobilefuture.org/wp-content/uploads/2013/02/ Guardian, www.theguardian.com/technology/2014/feb/11/ local%20provision%20-%20Full.pdf 91 70 per cent of AB groups own smartphones vs 47 per cent of mobile-future.publications.handset-replacement-cycle.pdf; personal-computer-decline-pc-obsolete 81 Rohin Dharmakumar, 2 December 2013, ‘Can Micromax DEs. From: 7 August 2014, The communications market see also Toni Sacconaghi, 7 August 2013, The long view: the 113 Katie Collins, 23 September 2014, ‘Samsung will no longer become India’s leading smartphone maker?’, IBN Live, report, Ofcom, p 274, stakeholders.ofcom.org.uk/binaries/ used smartphone market, part 1: what, where and how big?, sell laptops or Chromebooks in Europe’, wired.co.uk, www. ibnlive.in.com/news/can-micromax-become-indias-leading- research/cmr/cmr14/2014_UK_CMR.pdf Bernstein Research, p 19 wired.co.uk/news/archive/2014-09/23/samsung-exits- smartphone-maker/437322-55.html 92 Aaron Smith, 30 November 2012, The best (and worst) of 103 By contrast, in the UK, the number of contract users has laptop-market 82 Assa Doron, 1 September 2012, ‘Consumption, technology mobile connectivity, Pew Research Center, p 14, www. slightly increased. See: 1 May 2013, ‘Mobile users move 114 7 August 2014, The communications market report, Ofcom, p and adaptation: care and repair economies of mobile pewinternet.org/files/old-media//Files/Reports/2012/ toward contract tariffs as prepaid plateaus’, GSMA 271, stakeholders.ofcom.org.uk/binaries/research/cmr/ phones in north India’, Pacific Affairs, vol 85, issue 3, p 563, PIP_Best_Worst_Mobile_113012.pdf Intelligence, gsmaintelligence.com/analysis/2013/05/ cmr14/2014_UK_CMR.pdf www.ingentaconnect.com/content/paaf/ 93 Charles Arthur, 30 April 2014, ‘The death of the featurephone mobile-users-move-toward-contract-tariffs-as-prepaid- 115 An average of 3.11 years, based on information from the paaf/2012/00000085/00000003/art00006 in the UK - and what’s next’, The Guardian, www. plateaus/386/ Oeko Institut, Daniel research group, , Crucial, HP 83 Rohin Dharmakumar, 2 December 2013, ‘Can Micromax theguardian.com/technology/2014/apr/30/featurephone- 104 Charles Arthur, 16 October 2014, ‘Peak tablet: how will Apple and the EU’s Joint Research Centre smartphone-uk- become India’s leading smartphone maker?’, IBN Live, sell even more iPads?’, The Guardian, www.theguardian.com/ 116 Naina Khedekar, 25 February 2013, ‘Market watch: the ibnlive.in.com/news/can-micromax-become-indias-leading- 94 Charles Arthur, 27 April 2014, ‘How to keep on selling technology/2014/oct/16/apple-peak-tablet-ipad-ipad-air-pro second-hand options’, Tech2, tech.firstpost.com/ smartphone-maker/437322-55.html smartphones when we’ve nearly all got one already’, The 105 Kathryn Zickuhr and Lee Rainie, 1 January 2014, ‘Tablet and news-analysis/market-watch-the-second-hand- 84 Assa Doron, 1 September 2012, ‘Consumption, technology Observer, www.theguardian.com/technology/2014/apr/27/ e-reader ownership’, Pew Research Center, www. options-75481.html smartphone-market-saturation-apple-samsung and adaptation: care and repair economies of mobile pewinternet.org/2014/01/16/tablet-and-e-reader- 117 Assa Doron, 1 September 2012, ‘Consumption, technology phones in north India’, Pacific Affairs, vol 85, issue 3, p 578, 95 Matt Hamblen, 24 March 2014, ‘Smartphone innovation is ownership/ and adaptation: care and repair economies of mobile www.ingentaconnect.com/content/paaf/ slowing, so what’s next?’, Computerworld, www. 106 Kathryn Zickuhr and Lee Rainie, 16 January 2014, E-reading phones in north India’, Pacific Affairs, vol 85, issue 3, p 563, paaf/2012/00000085/00000003/art00006 computerworld.com/article/2488558/smartphones/ rises as device ownership jumps: three in ten adults read an www.ingentaconnect.com/content/paaf/ 85 7 August 2014, The communications market report, Ofcom, p smartphone-innovation-is-slowing--so-what-s-next-.html e-book last year; half own a tablet or e-reader, Pew Research paaf/2012/00000085/00000003/art00006 3, stakeholders.ofcom.org.uk/binaries/research/cmr/ 96 Nielsen, 1 February 2013, The mobile consumer: a global Centre, p 5, www.pewinternet.org/files/old-media//Files/ 118 The Gazette of India: Extraordinary, 12 May 2011, Ministry of cmr14/2014_UK_CMR.pdf snapshot, p 17, www.nielsen.com/content/dam/corporate/ Reports/2014/PIP_E-reading_011614.pdf Environment and Forests Notification, Controller of 39 Publications, Delhi, p29, www.moef.nic.in/downloads/ 129 ‘Laptops | buy laptops online at best prices in India’, flipkart. 140 Toni Sacconaghi, 7 August 2013, The long view: the used final figures by fuel type and end-user, Department of Energy rules-and-regulations/1035e_eng.pdf com, www.flipkart.com/laptops/pr?p=facets.pricerange%2 smartphone market, part 1: what, where and how big?, and Climate Change, p 10, www.gov.uk/government/ 119 4 June 2014, ‘India continues as one of the fastest growing 55B%255D%3DRs.%2B10001%2B- Bernstein Research, p4 uploads/system/uploads/attachment_data/ smartphone markets in Asia Pacific in 1Q 2014, says IDC’, %2BRs.%2B20000&p=sort%3Dprice_ 141 Nektarios Oraiopoulos, Mark Ferguson and L. Toktay, 1 May file/295968/20140327_2013_UK_Greenhouse_Gas_ IDC, www.idc.com/getdoc.jsp?containerId=prIN24908614 asc&sid=6bo%2Cb5g&ref=3a0d498b-9d6b-4da3-ab6f- 2012, ‘Relicensing as a secondary market strategy’, Emissions_Provisional_Figures.pdf a0292544fde2, accessed 1 December 2014 120 Anand Rai, 29 May 2014, ‘India had third largest smartphone Management Science, vol 58, issue 5, p 6, www.prism. 153 Based on the UN’s definition of humans needing a minimum base with 117m users in 2013; to grow 45% in 2014: Mary 130 Ministry of Environment and Forests, 15 November 2010, gatech.edu/~bt71/articles/OFT.pdf of 50 litres of water per day. United Nations, ‘Global issues: Meeker report’, techcircle.in, techcircle.vccircle. ‘Ban on import of second-hand computers’, Press 142 ibid, p 3 water’, www.un.org/en/globalissues/water, accessed 1 com/2014/05/29/india-had-third-largest-smartphone- Information Bureau Government of India, pib.nic.in/ November 2014 newsite/erelease.aspx?relid=67144 143 10 February 2012, ‘Un-backed report warns of dangers of base-with-117m-users-in-2013-to-grow-45-in-2014-mary- increasing electronic waste in west Africa’, UN News Centre, 154 Average footprint data. Smartphone data from: Nokia, The Gazette Of India: Extraordinary meeker-report/ 131 , 14 October 2013, www.un.org/apps/news/story.asp?NewsID=41201 Apple, Google, Sony, Samsung, Fairphone; tablets from ‘Ministry of Environment and Forests notification’, Controller Google and Apple; laptops from Google, Apple, Dell and a 121 Vasanth R, 30 March 2014, ‘Smartphone users doubled in 144 1 November 2012, Mining for smartphones: the true cost of urban India: recorded 89% y-o-y growth in 2013!’, of Publications, Delhi, pp 20, 27, 30, envfor.nic.in/sites/ study from the EU’s Joint Research Centre default/files/SO%203100%28E%29.pdf tin, Friends of the Earth, p 4, www.foe.co.uk/sites/default/ dazeinfo.com, www.dazeinfo.com/2014/03/20/ files/downloads/tin_mining.pdf 155 Data for a 3.5-inch screen 2009 iPod touch, which we take to smartphone-users-doubled-urban-india-recorded-89- 132 Data from Recon Analytics, mobilefuture.org/wp-content/ be equivalent to an early iPhone. Paul Teehan and Milind yoy-growth-2013/ uploads/2013/02/mobile-future.publications.handset- 145 eef (The manufacturers’ organisation), 1 July 2014, Materials Kandlikar, 7 May 2013, ‘Comparing embodied greenhouse replacement-cycle.pdf; 2013 data suggests US replacement for manufacturing: safeguarding supply, p 1, www.eef.org. gas emissions of modern computing and electronics 122 Javed Anwer, 20 September 2013, ‘Android’s market share in uk/resources-and-knowledge/research-and-intelligence/ India over 90%: IDC’, The Times of India, timesofindia. rates may have risen slightly to 22.4 months reconanalytics. products’, Environmental Science and Technology, vol 47, p com/2014/02/rogers-recon-state-of-wireless-union-2014- industry-reports/materials-for-manufacturing- 3999, pubs.acs.org/doi/pdf/10.1021/es303012r indiatimes.com/tech/tech-news/Androids-market-share-in- safeguarding-supply India-over-90-IDC/articleshow/22793647.cms part-two/ 156 Data for an iPad 1, ibid 133 An average of 3.11 years, based on information from the 146 Honda, 4 March 2013, ‘World’s first process to reuse rare 123 4 June 2014, ‘India continues as one of the fastest growing earth metals extracted from nickel-metal hydride batteries 157 Data for a 16” HP laptop, ibid smartphone markets in Asia Pacific in 1q 2014, says IDC’, Oeko Institut, Daniel research group, Lenovo, Crucial, HP and the EU’s Joint Research Centre. for hybrid vehicles’, phys.org, phys.org/news/2013-03- 158 Paul Teehan and Milind Kandlikar, 7 May 2013, ‘Comparing IDC, www.idc.com/getdoc.jsp?containerId=prIN24908614 world-reuse-rare-earth-metals.html embodied greenhouse gas emissions of modern computing 134 Tiernan Ray, 11 April 2013, ‘AAPL, DELL, HPQ: Bernstein 124 James Crabtree, 28 July 2014, ‘India prepares for ‘big bang’ 147 Heather Clancy, 28 May 2014, ‘Dell’s supply chain brings and electronics products’, Environmental Science and Financial Times ponders lengthening PC cycle’, Barrons, blogs.barrons.com/ in smartphone use’, , www.ft.com/ closed-loop recycling advantage’, Forbes, www.forbes.com/ Technology, vol 47, p 3,999, pubs.acs.org/doi/pdf/10.1021/ cms/s/0/15942a48-0e2c-11e4-85ab-00144feabdc0. techtraderdaily/2013/04/11/aapl-dell-hpq-bernstein- es303012r ponders-lengthening-pc-cycle/ sites/heatherclancy/2014/05/28/dells-supply-chain- html?siteedition=uk brings-closed-loop-recycling-advantage/ 159 Smartphone data from Recon Analytics; tablet data provided 135 Nielsen, 1 February 2013, The mobile consumer: a global 125 Rohin Dharmakumar, 2 December 2013, ‘Can Micromax 148 85 per cent of emissions arise from production for the by Jackdaw research, Consumer Intelligence Research IBN Live snapshot, p 17, www.nielsen.com/content/dam/corporate/ become India’s leading smartphone maker?’, , iPhone 6. From: Apple, 1 September 2014, iPhone 6 Partners, HP, and TabTimes to arrive at an estimate of 2.55 ibnlive.in.com/news/can-micromax-become-indias-leading- us/en/reports-downloads/2013%20Reports/Mobile- years; laptops estimated at 3.11 years, based on information Consumer-Report-2013.pdf environmental report, p 1, images.apple.com/environment/ smartphone-maker/437322-55.html reports/docs/iPhone6_PER_Sept2014.pdf from the Oeko Institut, Daniel research group, Lenovo, 136 Serenity Caldwell, 22 July 2014, ‘This is Tim: Apple’s CEO on Crucial, HP and the EU’s Joint Research Centre 126 PTI (Press Trust of India), 16 June 2014, ‘India to have 519 149 Averages of available footprint data. Smartphone data The iPad sales, china, beats, IBM, and more’, Macworld, www. million mobile internet users by FY18: Morgan Stanley’, from: Nokia, Apple, Google, Sony, Samsung, Fairphone; 160 Paul Teehan and Milind Kandlikar, 7 May 2013, ‘Comparing Times of India, timesofindia.indiatimes.com/tech/ macworld.com/article/2455693/this-is-tim-apples-ceo-on- embodied greenhouse gas emissions of modern computing ipad-sales-china-beats--and-more.html tablets from Google and Apple; laptops from Google, tech-news/India-to-have-519-million-mobile-internet-users- Apple, Dell and a study from the EU’s Joint Research and electronics products’, Environmental Science and by-FY18-Morgan-Stanley/articleshow/36656019.cms 137 Bianca Vázquez Toness, 8 August 2014, ‘Indians flaunt Centre Technology, vol 47, p3999, pubs.acs.org/doi/pdf/10.1021/ 4-year-old iPhones as Apple builds appeal: tech’, Bloomberg, es303012r 127 Singh Rawat, 11 October 2013, ‘Vodafone connects to rural 150 We’ve calculated the economic lifetime described here as India for data segment growth’, Business Standard, www. www.bloomberg.com/news/2014-08-07/indians-flaunt-4- 161 Kevin Culligan and Brian Menzies, 29 March 2013, The value year-old-iphones-as-apple-builds-appeal-tech.html the time during which the cost of acquisition and repair of business-standard.com/article/companies/vodafone- these devices is below the price that the device can fetch on of consumer electronics for trade-in and re-sale, WRAP, The long view: the used connects-to-rural-india-for-data-segment- 138 Toni Sacconaghi, 7 August 2013, the market. appendices, available on request, www.wrap.org.uk/ growth-113101100781_1.html smartphone market, part 1: what, where and how big?, node/18473 Bernstein Research, p4 151 The relationship between mass and carbon intensity is 128 Phil Muncaster, 20 December 2013, ‘World’s cheapest tablet reasonably strong, with an R² value of 0.731 162 ibid The Register The communications market report just got cheaper’, , www.theregister.co. 139 7 August 2014, , Ofcom, p 163 ibid uk/2013/12/20/aakash4_datawind_india_cheapest_ 274, stakeholders.ofcom.org.uk/binaries/research/cmr/ 152 27 March 2014, 2013 UK greenhouse gas emissions, tablet/ cmr14/2014_UK_CMR.pdf provisional figures and 2012 UK greenhouse gas emissions, 40 Green Alliance © Green Alliance, 2015 Green Alliance is a charity and independent think Green Alliance’s work is licensed under a Creative Commons tank focused on ambitious leadership for the Attribution-Noncommercial-No derivative works 3.0 unported licence. 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Acknowledgements: Andrea Steves, Audrey Davenport, and Saleem Van Groenou from Google; and Claire Ollerenshaw and Gerrard Fisher from WRAP.

This work was kindly supported by Google.org. However, the views expressed are Green Alliance’s, and do not necessarily reflect those of Google.

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ISBN: 978-1-909980-36-5