3.3 Reuse
Table 5 shows average refurbishment cost and resale value per handset in 2003 in the UK and in 2006 in the USA (both in 2006 USD). The values are derived from fairly comprehensive datasets which cover the major cell phone refurbishers in the UK in 2003 (Shields, Greener Solutions) and in the USA in 2006 (ReCellular, PaceButler, RMS).
In both cases, cell phone reuse is profitable, even if all reverse logistics costs are included. The resale value of individual handsets varies widely and depends on brand and model, as well as grade, age, and condition. Table 6 shows the average resale prices of different handset grades of a US refurbisher in 2006 and their fraction of his total stock. The grades are based on the condition of the handset and the amount of reprocessing. For example, many handsets are only tested and cosmetically cleaned without further disassembly or parts replacement. In contrast to traditional
forward supply chains, where inputs from suppliers are typically designed and produced to meet the specifications and demand from their customers, the inputs to closed-loop supply chains are the end-of-use products retired from the product users and thus directly dependent on new product
sales and user behavior.