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Meizu said mobile phone recycling is a losing business

Updated:2015/8/25 10:43

"China produces as many as 450 million mobile phones every year, while the waste mobile phones are 180 million, of which only less than 1% are recycled." At a recent news conferences, the vice president of Meizu Li Nan said that Meizu would launch a mobile phone recycling program called mCycle, and hoped that the waste mobile phones can be “environmentally recycled".

In fact, with the increasing upgrade frequency of smartphones, the waste mobile phones rapidly increased every year. According to the data of MIIT, shipments of mobile phones were 425 million in China market in 2014, while the new mobile subscribers were only 57 million.The huge disparities of these data showed that a large number of mobile phones are in wasted situation.

Statistics data shows that 425 million mobile phones were sold in China in 2014. Judging by the annual 20% replacement rate of mobile phones, the replacement market is up to 80-90 million mobile phones in China every year, due to the lack of recycle step, since the beginning of 2G feature phones, hundreds of millions of mobile phones are wasted in China.

Previously, Apple, Huawei and other mobile phone vendors have announced to launch mobile phone recycling programs. But according to the insiders, the current second-hand mobile phones recycling and dismantling industry chain is in the gray area, while the formal companies mostly rely on government subsidies or other value-added services, and the average gross profit rate is less than 10% in electronic waste dismantling industry.

"Environment protection itself is a luxury." Li Nan told the reporters, Meizu didn’t obtain any profit in this industrial chain. He stressed that mobile phone recycling is burning cash, it’s common to break even or loss a bit.

However, after content expansion of the "Catalogue of waste electronic products” in February, the range of electronic wastes increased from the original “televisions, refrigerators, washing machines, room air conditioners and computers” to 14 categories including water heaters, mobile phones and other products, the new version will take effect on March 1st of 2016. Maybe in the next year, the mobile phone recycling industry chain will have an obvious change.

 Source:c114
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