Fri Sep 20 08:30:06 UTC 2024: ## EU’s USB-C Mandate to Create a Tsunami of Obsolete iPhones, Threatening Secondhand Market
The upcoming Radio Equipment Directive in the EU, mandating USB-C charging ports for all smartphones, is set to create a significant ripple effect in the secondhand smartphone market, particularly impacting Apple iPhones.
The directive, coming into effect on December 28th, aims to reduce e-waste by eliminating proprietary chargers. While Apple has finally succumbed to the regulation, it could lead to a significant influx of older iPhones, incompatible with the new USB-C standard, flooding the market.
According to market research firm CCS Insight, up to 8 million iPhones, representing 40% of the secondhand market in the EU, could become effectively obsolete. This could translate to a loss of €2 billion ($2.22 billion) in sales, as the EU is a major importer of used phones, largely from the US, Japan, and Singapore.
The situation underscores Europe’s dependence on devices from other regions and highlights the ongoing challenge of promoting circularity in the tech sector. While the EU seeks to reduce e-waste, the ban could drive trading into unregulated channels and lead to increased parallel imports bypassing customs.
The impending directive could also impact the primary market, as consumers who prefer iPhones may opt for the newer USB-C compatible models, leaving older devices behind. The influx of these older models could further drive down prices, impacting the overall value of the secondhand smartphone market.
This situation presents a unique challenge for the EU, balancing its commitment to sustainability with the potential economic and logistical implications of the USB-C mandate. It remains to be seen how this regulatory change will reshape the global smartphone market and its impact on both consumers and businesses.
First Piper 