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New EU Charging Standard Threatens Secondhand Phone Market

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New EU Charging Standard Threatens Secondhand Phone Market

The EU’s Radio Equipment Directive, set to take effect at the end of this year, will require all mobile devices to support USB-C charging. In the short term, this will make many used smartphones in the region obsolete because they do not have USB-C chargers. However, in the long term, the new regulation could lead to innovation in wireless charging technologies and new business models that focus on retrofitting older devices with USB-C ports.

Impact on the Secondhand Smartphone Market

The impact will be far-reaching, affecting both primary and secondary smartphone markets. Many secondhand smartphones will not support USB-C when the directive is implemented, and the EU is a major importer of used phones, primarily from the US, Japan, and Singapore.

The directive has been under development for years, with discussions about standardizing chargers launching in 2011. Apple initially opposed the regulation, but later confirmed it was switching to USB-C for the iPhone 15 line-up.

Concerns and Opportunities

The USB-C mandate will strain the still-emerging circular industry, which has already seen several companies cease trading this year because of tough market conditions. However, it may also promote innovation in wireless charging technologies and new business models that focus on retrofitting older devices with USB-C ports.

On the other hand, consumers are keeping their older phones longer, and when they do trade up, many are opting for second-hand models. This trend could lead to an increase in the demand for refurbished smartphones, and the EU’s regulation may inadvertently boost this market.

The EU’s goal of reducing e-waste may be achieved in the long term, but it may paradoxically lead to an increase in discarded devices in the short term. As the industry adapts to the new regulation, it will be interesting to see how manufacturers and consumers respond to the changes.

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