In March, Apple announced that a subscription service for iPhones is on the way, so what does this mean for the future of consumer electronics and why is it the right path to a more sustainable future? ?
The circular economy is expected to be valued at $4.5 trillion by 2030 by the World Economic Forum, 2022, as this game changer allows for the growth of the economy without introducing new resources that play a crucial role in the preservation of the earth’s limited natural resources. The human population is expected to reach 8.184 billion by 2025 with rapidly growing middle income and huge consumer demand for electronics.
We are already feeling the effects as a shortage of important metals and supply chain disruption meant we should start thinking about maximizing every electronics product produced instead of treating it like a consumable to be disposed of every 2-3 years .
E-waste is also setting new records, with the world generating 53,000 kg of e-waste – an average of 7.3 kg per capita in 2019 and is only expected to get worse, increasing by 38% globally to reach 74,700 kg in 2030.
These statistics are enough for us to start rethinking the whole model of buying, using and recycling technological devices for consumers and businesses.
Enter Device-as-a-Service or DaaS
DaaS is a new way to use a consumer technology device by treating it like a subscription service rather than an outright property. This monthly payment model means you never actually own the device, but get the benefits of using the device as long as you pay your subscription bill. Most of the time, through a subscription service, you will also benefit from certain advantages and promotions offered by the provider.
Why should consumers and businesses apply DaaS?
1. Ownership is overrated
Of course, it feels good when you buy the latest iPhone by paying for it in full or through an installment with your credit card provider. The dopamine wears off after 6 months and you find yourself handling the device carelessly and the love is lost unlike the first time you unboxed the phone. When you’re done with the phone, trading in and buying a new phone is another time-consuming process to tackle, not to mention the realization that your device will depreciate over the life of your phone. use.
This cycle repeats every 2-3 years or it could be a yearly affair for some. Consumers are also the last group of users you can expect to properly dispose of e-waste.
2. Leasing obliges the consumer to be responsible
Leasing and renting exist in the real estate and automotive industry and very often the tenant’s responsibility for the use of the space or product shifts significantly to greater caution. Imagine that you are staying in a hotel or renting a car, the fear of getting a little scratch or damaging a piece of furniture in a service apartment is real because it is not yours. Extending it to devices brings the same set of rules that should be used with more care.
3. Technology Helps Efficient Device Circulation
The lender is one such platform that facilitates the needs of tech devices with variety and ease and helps them go green simultaneously. We cater to B2B and B2C customers with our short-term (days and weeks) and long-term (months, years) rental plans. By practicing a quick and thorough KYC (Know Your Customer), it helps maximize the utility and value of every device powered by the platform.
4. The price you pay is almost the same
It’s easy to forget how quickly electronic goods depreciate. As soon as you open the last smartphone purchase, it depreciates by 20%. After 3 years, it loses about 80% of its value. Technological devices are by no means an investment asset but a liability. Subscriptions allow you to have a transparent view of what it really costs you. A $2,000 laptop on the lender would cost $58/month for 36 months and if you’re money savvy, you can use the $2,000 to make your monthly subscription worth it.
Without a doubt, circular technology helps reduce e-waste by encouraging the reuse of well-functioning tech gadgets and maximizing their value. Instead of treating every electronic as a consumable to be disposed of every 2-3 years, we should start thinking about maximizing every electronic manufactured. Consumers are slowly but surely changing their mindset to practice more renting and less buying in an effort to waste less as DaaS is the way forward for businesses.
As the lender’s team looks forward to growing its business in the coming years with an expansion into Thailand planned by the third quarter of this year, we are encouraged by the early signs to continue championing sustainability in the circular economy space.
Wei Zhang Chuan is co-founder and CEO of Lendor, a circular platform for technology devices.
TechNode Global INSIDER publishes relevant contributions to entrepreneurship and innovation. You may submit your own original or published contributions subject to editorial discretion.
Now in its third year, the ORIGIN Innovation Awards are inspired by the United Nations Sustainable Development Goals (SDGs) and seek to recognize and celebrate entrepreneurs, companies, investors and drivers of the innovation ecosystem. exemplary models who embody the spirit of exceptional innovation and actively promote sustainability in their business practices. Nominations are now underway.
Singapore-based Lendor appoints Jo Olivia Lee as COO to lead expansion in Thailand and Southeast Asia