The economics of cell phone remanufacturing: Differences by product line, model age, and end-of-life quality

Abstract

Remanufacturing used cell phones can be a sustainable solution to e-waste problems. To support planning and optimization of cell phone remanufacturing, this paper presents an empirical study on the economics of cell phone remanufacturing process. The study aims to assess the economic remanufacturability of a cell phone by collecting real-world data about the economic circumstances of three remanufacturing steps (i.e., buyback, reconditioning, and resale). More specifically, the study investigates the effect of three factors on the remanufacturability: product line (i.e., premium and mainstream models), model age (i.e., years passed from the market release), and end-of-life quality (i.e., the condition of a used phone). Samsung Galaxy S and Galaxy Note series released in 2015-2018 are chosen for the study, and extensive data collection is conducted about the models’ remanufacturing economics as of 2019. Based on up-to-date real data, the study diagnoses the economic remanufacturability of cell phones and examines how it differs by the product line, model age, and the end-of-life quality. The study also discusses desirable conditions in which cell phone remanufacturing can achieve economic viability. © ICIC International 2020.