Refurbished Lease of Life for Electronics amid Chip Crisis and the Circular Economy 

When Apple hiked USD 100 on its flagship iPhone 18 Pro and iPhone 18 Pro Max models, it was clear that the chip crisis is now clearly biting conventional consumer electronics.  This is also trickling down industry wide with several consumer electronics companies indicating at inflated prices and slowdown in fresh product launches. 

Just in case you were not aware, consumer electronics has been dealing with chip crisis for a while. This is mainly because chipmaking companies are now allocating a vast amount of resources (production capacity and R&D budgets) to cater to a massive demand for enterprise AI chips and high-bandwidth memory (HBM).

“For the first time, the industry is seeing something unprecedented, even Apple has increased product prices across the life cycle. Usually, you launch a product, components get more affordable over time, and the price drops. This time around, everyone is increasing their prices every quarter. The dynamics have completely changed. However, because we have never built our brand equity around ‘value for money,’ I feel we are less impacted than brands that focus solely on that,” Nothing cofounder and India President Akis Evangelidis had told earlier. 

READ: The Cult of Nothing & Memory Chip Shortage To Hit India’s AI, Datacenter Push

Even as the chip crisis is likely to continue to plague the industry, refurbished technology is back in the spotlight as it gives consumers at least a choice. Just to highlight, refurbished tech has been around for a while, however, the narrative from cheaper alternatives has moved to a circular economy. 

Before we hold forth with circular economy and convergence with the refurbished technology, here’s what we need to know: 

India’s refurbished smartphone volume grew 13 percent YoY in the first half of 2026, according to Counterpoint Research’s latest report. The double digit growth comes at a time when new smartphone volumes in the country have declined by 11 percent YoY. 

India’s Refurbished Smartphone YoY Growth Trend, H1 2024-H1 2027E: Counterpoint

“The growth in India’s refurbished smartphone market is being supported by increasing price pressure in the new smartphone market, particularly in the entry and mid-range segments, where consumers are more price sensitive. For value-conscious consumers, higher prices in the entry and mid-range segments are making the premium refurbished proposition increasingly attractive. Instead of buying a new mid-range device at a higher price, consumers can access older premium smartphones with better cameras, displays and performance at a lower price,” the report notes. 

The report also notes that trade-in and exchange programs, akin to what consumers get on newer devices, are becoming important growth drivers.  It further notes that the expansion of refurbishment is also supporting the circular economy by extending device lifecycles and maximizing the value of smartphones that are already in circulation. 

Another growth drivers are the increasing number of players in the organised space for refurbished. Some names like Cashify and Servify have been in the industry for a while. The market potential also opens up a window for newer players. 

“Refurbished is no longer the compromise choice. New smartphone prices are up close to 15% this year, so consumers are asking what they get for their money. A certified, one or two-year-old premium phone often wins that comparison against a brand-new mid-range device,” Sreevathsa Prabhakar, founder & CEO of Servify, tells Entrepreneur India. 

“What has changed is the supply. Trade-in and assured buyback programmes now bring a steady flow of recent, well-kept devices back into the market. We handle over 300,000 trade-ins a year, and each of those is a phone that would otherwise sit unused in a drawer,” he continued. 

Grest founder Shrey Sardana notes that the second-hand electronics market has existed for decades, but much of it was informal, with limited visibility into device condition, battery health, previous ownership or after-sales support. 

Organised recommerce is bringing structure to this market through standardised quality checks, transparent grading, warranties and accountable customer service.

“Our revenue is currently split roughly 50:50 between Tier I and Tier II/III markets, which is a strong indicator of how the category is evolving. We see demand across students, young professionals, creators, entrepreneurs and working consumers. The demand is also becoming broader than just iPhones. MacBooks and iPads are increasingly becoming important categories for us, particularly among customers who want access to the Apple ecosystem at a more attractive value point,” Sardana added. 

Cashify Cofounder Nakul Kumar notes that organised recommerce provides the infrastructure for this shift. Buybacks and trade-ins bring devices into formal channels, while consistent testing, repair, grading and data sanitisation give consumers the confidence to choose them again. The industry’s responsibility is to make every subsequent ownership experience dependable. That requires investment in refurbishment capabilities, transparent quality standards and after-sales support.

“Extending device lifecycles also means retaining more of the materials, energy and resources already invested in manufacturing, while making technology accessible to more consumers. The opportunity for manufacturers, retailers and recommerce businesses is to embed recovery and reuse into the upgrade journey. Circularity will scale when every upgrade becomes an opportunity to bring another device back into productive use,” Kumar said. 

Refurbished Tech & Circular Economy

The European Parliament describes the circular economy as a model of production and consumption, wherein existing materials and products are reused, repaired, and refurbished, and recycled, as long as possible in a bid to extend the life cycle of products, according to an European Parliament. 

In emerging markets like India, also one of the largest smartphone markets, the circular economy becomes more relevant. 

According to Central Pollution Control Board (CPCB) data,  India generated 14,14,645 metric tonnes (14.14 lakh tonnes) of e-waste during the previous fiscal year (FY26) of which 9,79,080 metric tonnes were formally recycled. 

In the last few years, the government has also taken quite a few steps to curb e-waste. 

According to the E-Waste (Management) Rules, 2022, manufacturers, producers, refurbishers, and recyclers must register on a centralized online portal managed by the CPCB. This also includes a market-based EPR certificate trading system, storage limits, and financial penalties on non-compliance. 

ALSO READ: Startups: Growth, Sustainability And Circular Economy

Beyond conventional electronics, organised players in the circular economy are now tapping into newer segments such as EVs. 

Xbattery founder and CEO Satish Reddy tells Entrepreneur India: “…There is also no single figure for how much e-waste one discarded EV battery creates. It depends on the vehicle, battery size, chemistry and the treatment route. For perspective, passenger-EV battery systems can weigh several hundred kilograms. But the complete pack weight should not be confused with the amount of unrecoverable waste. 

A battery contains cells, aluminium, steel, copper, electronics and other materials that still have value. More importantly, a battery that is no longer suitable for a vehicle is not necessarily at the end of its useful life.

It may no longer meet the range or power requirements of an EV but could still have useful capacity for a less demanding application. That second life, however, has to be earned through testing. Battery health, damage history, safety, degradation and the economics of repurposing all have to be considered.” 

Interestingly, India currently has the most number of Lithium Ion Battery Recycling (26) startups, according to Tracxn. Some key names in the space are Lohum, Attero, Aqua Metals, Recyclekaro, and MiniMines.

Having said that, experts believe refurbished technology is likely to play a bigger role in further accelerating the circular economy, which is estimated to be worth USD 1 trillion by 2050 and create 10 million jobs. 

Sardana of Grest puts this into perspective: “The circular economy is fundamentally about keeping products and the resources embedded in them productive for as long as possible.  Refurbishment plays an important role because it extends the useful life of an existing product before it reaches the recycling stage. Instead of immediately dismantling a device into its constituent materials, refurbishment preserves the engineering, energy and resources already invested in manufacturing it and allows that product to serve another consumer.”

“This is particularly relevant for electronics because a significant part of a device’s environmental footprint is created during manufacturing. At the same time, we believe the industry should look beyond simply counting the number of devices refurbished. A more meaningful measure is the additional productive life created per device. If a device can reliably serve another consumer for two or three additional years, that is a tangible contribution to circularity,” he continued. 

Snowkap Co-founder & Director Ambalika Gupta notes that countries like Sweden and the Netherlands have a lot to teach if we are serious about it. 

“Sweden reduces VAT on repairs and lets households claim back half the labour cost of fixing large appliances. Platforms like reNewed sell tested, warrantied devices as a mainstream choice. At the European level, the industry has organised itself through EUREFAS, the European Refurbishment Association, which sets quality standards, runs a quality label and works directly with EU policymakers,” Gupta says. 

She also called for a structure in between: an industry body, common standards and incentives that turn an informal habit into a measurable market. 

“That’s when refurbished tech starts to count, for consumers and in corporate disclosures,” she noted. 

To sum it up, refurbished tech paves the way for a more robust sustainable circular economy. With more organised recommerce players coming in, awareness about sustainability, and most importantly the market crisis, the revived interest in refurbished tech could very well shape up the near-term consumer electronics market as well as drive substantial impacts on the economy and sustainability fronts.