- More and more smartphone OEMs are taking the circular approach. Apple and Samsung stand out as leaders in sustainable initiatives.
- Each of the major OEMs operates differently during the three main stages of the smartphone circular economy: production, use and end of life.
- OEM links with local sustainability partners have increased, leading to circular initiatives in all geographies. But OEM initiatives fall short of the volumes of new smartphones shipped each year.
London, Jakarta, Hong Kong, Boston, Toronto, New Delhi, Beijing, Taipei, Seoul – December 27, 2022
Apple leads the smartphone space in the global approach towards sustainability, according to Search for counterpoint last “Smartphones and the circular economy: creating a sustainable future” report. This report assesses how well the OEM reduces its impact on the environment by reusing materials, recycling devices and minimizing waste at every stage, from smartphone design, chip processing and packaging to energy consumption. The report also encompasses company-level initiatives, progress towards carbon neutrality and SDG 13 (one of the 17 Sustainable Development Goals adopted by the United Nations).
the Smartphone Circular Economy Report Dashboard includes a robust measurement system that rates the top five smartphone OEMs globally. Each OEM has its own vision and overall approach to sustainability. Apples The vision seems to be clearer than its competitors and its actions support said vision.
Apple tops sustainability vision rankings over immediate competition
Source: Counterpoint Research Smartphone and Circular Economy Report
While the sustainability vision is just the beginning, each of these OEMs has performed very differently across the three main stages of the smartphone circular economy:
- Production
- Use
- End of life
Production
The production of a smartphone is responsible for about 80% of the total carbon footprint of its life cycle, and it is therefore the most vital of the stages. OEMs have focused on this aspect and advertised it the most. Newly purchased materials are replaced with environmentally friendly components, while biodegradable and environmentally friendly packaging is now the norm. Even the water-saving mechanisms are respected throughout the manufacturing ecosystem. Equipment manufacturers now expect their suppliers to also comply with environmental standards. The best brands like SamsungApple and Oppo began to spread the environmental benefits through their initiatives in production. The details, however, are more intricate than advertised. Although the initiatives are a big step in the right direction, revenue and profit remain the primary goals.
Use
Most enduring consumer brands inherently strive to motivate consumers to replace their devices with newer, more technologically enhanced versions. But due to sustainability efforts, OEMs must maintain a balance between appealing to the consumer and preserving the environment. Chinese leaders love Oppo, Xiaomi, and, long live are constantly trying to improve battery life and energy efficiency.
While Apple scores high in overall longevity, durability updates and innovations, Samsung scores higher in repair, energy efficiency and after-sales networks. Ultimately, it depends on how long a consumer chooses to use a device. All the measures taken by the OEMs to support this company are the most important.
End of life
OEMs have a lot to do when it comes to getting their smartphones back after their useful life is over. Reintegrating second-hand smartphones into the system is necessary to manage them in a sustainable way. They must be repaired/refurbished to be reused or recycled responsibly to complete the circular loop. The main objective here is to reduce electronic waste. Knowing what OEMs are doing for this cause is essential.
The Global refurbished market has grown by leaps and bounds in recent years. In 2021, the market grew by 15% year-over-year and looks promising to continue growing in the years to come. Carriers and refurbishers are growing, but OEM initiatives for e-waste recovery, refurbishment and reduction are quite limited. Even the best brands are not active enough to remove their used stock. The greatest potential now lies in initiatives such as trade-ins, which guarantee the buy-back of older devices. It takes volumes of landfills. Brands like OPPO, long live and Xiaomi They have a long way to go in recovering and refurbishing devices considering the volume of new smartphones shipped by them every year. Apple and Samsung here too, but most of the recovery and refurbishment is done by the other players in the secondary ecosystem. The end of life stage is quite complex but one of the most rewarding if done well.
OEM links with local sustainability partners have increased, leading to circular initiatives in all geographies. But these initiatives need to grow at a faster rate to be consistent with the volumes of new smartphones shipped each year. There are also opportunities. Sustainability and its different aspects, initiatives and actors can be broken down into many sectors with various opportunities. The environmental benefits are compounded when industry and government take steps in the right direction.
OEMs already have a name for themselves, but their sustainability initiatives will make or break their perception for years to come.
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Background
Counterpoint Technology Market Research is a global research company specializing in TMT (technology, media and telecommunications) industry products. It serves leading technology and financial companies with a combination of monthly reports, custom projects and detailed analysis of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.
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Glen Cardoza
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