Quinton Goddard, Head of Solutions and Sustainability at SquareTrade Europe, explains how economic uncertainties have the potential to reshape consumer electronics.
Economic uncertainty is creating a perfect storm that could transform consumer electronics purchasing, but only if the refurbished market acts decisively to capitalise on this once-in-a-generation opportunity.
The global electronics supply chain under pressure
The electronics industry exemplifies global integration, with modern devices incorporating components from dozens of nations.
When you hold a smartphone or laptop, you’re holding the culmination of a complex global network spanning multiple continents. Take an iPhone: designed in California, with chips from Taiwan, cameras from Japan and Germany, displays from South Korea, all assembled in China or India.
This global assembly process cannot be easily adapted overnight. Given the long lead times and massive investment required to relocate supply chains, manufacturers have limited options for avoiding cascading costs.
The inevitable result: prices will rise. As device costs increase and rising living expenses pressure household budgets, new electronics become increasingly unaffordable.
However, the refurbished market offers accessible pricing and a sustainable consumption model that could shift consumer psychology from linear ‘buy-new/dispose’ patterns toward circular habits.
The refurbished revolution
Supply chain disruption presents an opportunity to respond to economic pressures and establish refurbished devices as a permanent mainstream alternative.
While new device prices rise, refurbished devices offer distinct advantages: they are generally 20-40% cheaper, processed domestically, and deliver environmental benefits while meeting rigorous quality standards.
Major OEMs have validated this model by establishing certified programmes that extend device lifecycles while maintaining brand standards. These programmes ensure refurbished devices meet meticulous classification benchmarks, often including warranties or insurance comparable to new products.
The market opportunity is also significant. The global refurbished market is projected to expand from £54 billion in 2024 to over £90 billion by 2032. As new device prices climb, the discount becomes even more compelling, while refurbished devices reduce CO2 emissions by 80% compared with buying new.
Overcoming the trust barrier
A GSMA study reveals a striking paradox: while 70% of consumers globally say they would pay a premium for environmentally friendly phones, only 10% actually bought their current phone second-hand.
This intention-behaviour gap stems from absent societal habits around purchasing pre-owned technology, persistent trust concerns about device reliability, data retention, and fragmented availability across suppliers. When new device prices rise, the refurbished market has an unprecedented opportunity to overcome these barriers.
To capitalise on this shift, the refurbished industry must systematically address consumer concerns through:
- standardised grading systems consumers can trust across all suppliers;
- comprehensive device history tracking providing full transparency about previous ownership, data wiping assurances, repair records, and component replacements;
- battery health certificates with verified performance data and remaining lifespan estimates; comprehensive insurance coverage matching or exceeding new device protection;
- authentic customer review systems through verified feedback platforms.
Strategic imperatives for market transformation
For the industry to capitalise on this uncertainty, the refurbished market must simultaneously address multiple strategic priorities.
Resilient supply chains
The refurbished market needs immediate investment in regional repair and component supply chains. As virgin replacement part costs rise, refurbishers face a critical choice: continue importing expensive components, harvest parts from damaged devices, or accept lower-quality non-OEM alternatives.
Forward-thinking refurbishers are building ‘component libraries’ from irreparable devices, creating regional supply chains completely independent of imports. The EU’s Right to Repair legislation provides a regulatory framework enabling this shift.
Device supply security
Meeting surging refurbished demand while building component libraries requires dramatically increasing device supply. This means incentivising customers to return devices rather than holding onto them indefinitely in drawers.
With an estimated 5-10 billion unused devices globally sitting idle, innovative buyback programmes offering immediate payment, convenient collection processes, and clear communication about device value become critical success factors. When new phone prices rise, that iPhone forgotten in a draw somewhere suddenly represents real, unlockable value.
Market efficiency & standardisation
The refurbished market today is inefficient, illiquid, and highly fragmented. To provide sufficient volume and price stability, the markets need to adopt standardised grading systems, transparent device health and history information for customers, and unified trading platforms that transform scattered sellers into a cohesive, trustworthy marketplace competing directly with new device retail.
The circular opportunity
The convergence of economic pressure and environmental necessity presents a rare alignment of market forces – an unintended catalyst for circular economy adoption.
Success requires the refurbished industry to act decisively: building consumer trust through transparency and comprehensive protection; ensuring consumers embrace refurbished options; and creating accessible pathways that make circular consumption as convenient as linear purchasing.
Critically, the refurb market must continue increasing liquidity through consolidation, standardisation, and transparent market pricing with robust trading platforms.
This infrastructure is already beginning to take shape, but accelerating these developments is essential to transform the fragmented landscape into a truly efficient secondary market that can thrive.
The refurbished market must seize this moment to fundamentally transform how consumers transact with technology.