The hidden costs of constant phone upgrades

In Singapore, owning a smartphone with a data plan is seen as a necessity. However, most aren’t just interested in owning a phone; they want the newest one. Singaporeans change their phones faster than the rest of the world, with upgrades occurring roughly every 2.7 years, almost a year earlier than the global average of 3.5 years. 

The numbers clearly support this. While those who upgrade only when their phone is malfunctioning tend to wait at least three years, those motivated by performance or new features often switch within two. Given Singapore’s below 3 year average, it’s evident that many are changing their phones for the latter reason.

Compounding this trend is the country’s appetite for premium models. The average smartphone price in Singapore is nearly double the global average. Brands like Apple and Samsung, which dominate the high-end market, command a 73% share locally — far greater than their presence in the rest of Southeast Asia, where more accessible brands like Huawei or Oppo are more common.

These patterns were detailed in a whitepaper commissioned by device-as-a-service company Cinch and authored by consultancy Steward Redqueen. Titled “Rethinking E-Waste: How Singapore’s consumer tech ecosystem is building a blueprint for a circular economy in Southeast Asia”, the whitepaper explores the e-waste challenge in Singapore, focusing specifically on smartphone usage, disposal, and sustainability efforts.

After all, manufacturing a single smartphone consumes about 268.6 kilograms of raw materials, including rare earth metals. When phones are retired prematurely, these materials go to waste — and improper disposal risks releasing hazardous substances like lead and mercury into the environment.

To make matters worse, many smartphones are traded out before their lifecycle is complete or simply discarded instead of recycled, wasting the considerable residual value of their components and recoverable materials.

Given these facts, the whitepaper naturally advocates for the promotion of a circular economy — one that discourages early disposal and instead champions reuse, remanufacturing, and recycling, fulfilling the famous three Rs.

Reducing Demand by Encouraging Reuse and Recycling

The familiar “three Rs” — reduce, reuse, recycle — are typically listed in order of importance. Since reducing smartphone use itself is difficult given their cultural and essential role, the whitepaper focuses on reducing demand for new devices by encouraging reuse and recycling.

A refurbished smartphone, for instance, avoids 24kg of carbon emissions and displaces the extraction of 77kg of materials. Efforts like these have gained traction in Europe, where favourable legislation and a more sustainability-conscious consumer base have driven adoption.

Southeast Asia, however, remains a more price-sensitive market, where consumers are less likely to sacrifice perceived quality for sustainability. A 2020 WWF survey found that while two-thirds of Singaporeans believed consumers had a role in reducing e-waste, only a third were willing to pay more for sustainable options.

That said, consumer openness is growing. Tech giants like Apple and Samsung now offer refurbished models locally, and third-party providers have entered the market with certified refurbished phones backed by warranties. These steps help to reassure consumers that second-hand devices still offer reliability and quality.

Trade-in programs have also played a role. A majority of phones purchased directly from manufacturers are now paired with trade-in schemes, encouraged by financial incentives. However, the number of devices collected through trade-ins and disposal still outpaces local second-hand sales.

To handle this surplus, Singapore exports many used devices to markets where demand is stronger. One contributor to the whitepaper, CompAsia, facilitates the trade of 120,000 to 150,000 smartphones annually by moving devices from mature markets like North America to countries such as Vietnam, the Philippines, and Pakistan.

Reuse in action

Beyond trade-ins, a growing share of Singaporeans are finding ways to extend the lifespan of their devices. According to the whitepaper, 32% of respondents resell their phones through re-commerce platforms, while another 12% pass them on to friends or family, indicating that close half of all phones, reused rather than retired.

Cinch, the whitepaper’s commissioner, exemplifies a circular business model built around reuse. The company offers premium phones and other devices via flexible rental plans that include damage protection, quick repairs, and easy upgrades or returns. By retaining ownership of the devices, Cinch is incentivised to extend their lifespan, instead of replacing them with for newer models to meet consumer demand.

Since launching in 2022, Cinch has deployed 10,000 devices with a re-let rate above 90%. Its phones are now entering their third year of circulation. The company also partners with CompAsia, enabling enterprise customers to monetise used phones while ensuring that all devices are responsibly reused or recycled.

Recycling

Not all devices can be reused. For phones that have reached the end of their usable life, recycling is critical — and in Singapore, it is largely managed by the public sector.

Ease of use remains the biggest barrier. According to the survey, 90% of respondents said they would recycle or resell their phones if the process were seamless. Furthermore, in a 2018 study, the National Environment Agency (NEA) identified poor e-waste collection as a major roadblock to effective recycling of the country’s then approximate 60,000 tonnes of annual e-waste.

To smooth this bump, the NEA established the Extended Producer Responsibility (EPR) scheme in 2021 and appointed ALBA E-Waste Singapore as its national operator. Since then, e-waste collection has grown significantly. ALBA collected a total of 22,300 tonnes of e-waste by September 2024, a drastic improvement from the estimated 3,600 tonnes of e-waste being recycled annually prior to 2018.

NEA also supports corporate sustainability efforts through funding, offering to co-finance up to 80% of project costs for companies that can demonstrate that they are hitting the NEAs waste reduction targets.

Public and private

Singapore’s passion for cutting-edge tech may be fuelling the e-waste problem — but that same enthusiasm also offers a chance for leading the charge to deal with it. As private companies like Cinch and CompAsia expand access to second-hand and rental devices, consumer demand may gradually shift from brand-new products to more affordable and sustainable alternatives.

Meanwhile, public initiatives like ALBA and the EPR scheme are ensuring that recycling keeps pace with consumption. Together, these efforts are laying the foundation for a more circular ecosystem — one that makes better use of existing devices and reduces environmental harm.

“No single company can solve e-waste alone. What’s needed is a national framework that rewards sustainable behaviour and embeds circularity into the tech ecosystem,” said Mahir Hamid, CEO of Cinch. “Circularity is becoming the core of how tech consumption needs to evolve. We’re proud to be part of the broader national effort to make Singapore a leader in sustainable innovation.”