Refurbishing Mobile Phones: A Supply Chain Revolution

The European mobile phone industry is embracing sustainability with a major focus on extending product life cycles.

At the heart of this transformation is French company Dipli, co-founded by Reynold Simonnet, which simplifies the supply chain for electronic devices.

By enabling seamless connections between consumers trading in old phones and those buying refurbished ones, Dipli is reshaping the way the industry tackles waste and sustainability.

A recent study conducted by Dipli and research group IPSOS highlights consumer attitudes toward selling and buying second-hand phones, revealing vast potential for growth in this market. The findings are driving changes in how the supply chain operates to meet evolving consumer needs.

Addressing waste in the mobile supply chain

Globally, more than eight billion mobile phones are in circulation—more than there are people on Earth. Reynold Simonnet highlights the urgency of managing this electronic waste.

“These eight billion devices are going to be renewed,” he says.

“If you miss this momentum, then basically the old phone is going to stay in the drawer forever.”

This highlights a twofold challenge: the waste of precious materials like lithium and cobalt, which are vital for manufacturing and the missed financial opportunities for consumers who fail to sell their unused devices.

Dipli sees this as a chance to establish a sustainable, circular economy for smartphones.

By partnering with major telecommunications companies and original equipment manufacturers (OEMs), including Orange, Dipli ensures that used devices are collected, refurbished and resold through a streamlined process.

This approach not only reduces waste but also keeps resources circulating within the supply chain.

Partnerships driving change

Orange, one of Dipli’s key collaborators, has been instrumental in advancing its sustainability goals. The company’s "Re program," launched in October 2020, has expanded across Europe, focusing on repairing, recycling, refurbishing and returning devices.

“The trade-in and refurbished model is one of the best in Europe to meet customer needs: preventing lower planet impact while contributing to improve its purchasing power locally,” says Sandrine André, EMEA Head of B2C Commercialisation at Orange.

Customers can trade in their old devices at retail locations, where they are assessed and processed through Dipli’s supply chain. From here, devices are either refurbished or recycled, ensuring they continue their lifecycle.

This collaborative approach exemplifies how the mobile phone industry can redesign supply chains to be more sustainable and environmentally conscious.

Changing consumer habits

The IPSOS study reveals that many consumers still store their old phones rather than selling or recycling them. However, it also shows that people are upgrading their devices less frequently than they did 15 years ago.

“When I started my career 15 years ago, people would buy a new phone every 18 months, then it was 24 months and now it's up to 36 months—it’s always increasing,” explains Reynold.

This shift is attributed to two factors: the reduced pace of innovation in new models and the rising cost of living.

"People are going through a kind of crisis in buying power," he continues. "They’re not willing to spend a thousand euros every 24 months on a phone.”

To encourage second-hand purchases, trust is key.

Customers want assurance that refurbished phones are reliable, fairly priced, and backed by adequate warranties. Recognising this, Dipli and its partners have extended warranty periods for refurbished devices to two years, a significant improvement over previous six-month guarantees.

Reynold notes that this differentiates Dipli from informal marketplaces such as Vinted: “You don’t have the warranty, you don’t have the trust, and you cannot make sure that the data is well wiped.”

Despite this, Dipli aims to match Vinted’s simplicity to improve customer experience.

A sustainable supply chain future

The study by IPSOS provides vital insights into how the mobile phone industry can continue evolving towards sustainability.

Dipli’s model demonstrates how creating a circular economy—where devices are continuously refurbished and reused—can reduce the environmental impact of phone manufacturing.

"This study shows that many opportunities are still ahead of us," concludes Sandrine.

Reynold echoes the sentiment: “If you look at the carbon footprints, the water wastage, the way the materials are taken from the ground using child labour... the manufacturing of phones is quite devastating for human nature but also the environment.

"So, of course, the more we put back on the market, the less brand new phones we have to build.”

Through innovation and collaboration, the mobile phone supply chain is becoming a powerful driver for change, proving that sustainability and profitability can go hand in hand.

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