Chapter 10
What to Do with Old Cell Phones?
Every year, millions of consumers answer the call to upgrade their cell phones—and that means
deciding what to do with the used cell phone being replaced. Some people reuse their cell phones
by giving them to another family member or saving them in case the new phone happens to
break. Others simply toss their old cell phones into the trash, even though such electronics have
materials that shouldn’t be in landfills. What else can consumers do with their old phones?
One option is to trade it in. Retailers such as Target
[http://bi.galegroup.com/essentials/company/127578?u=tlearn_trl], Costco
[http://bi.galegroup.com/essentials/company/321146?u=tlearn_trl], and Amazon.com
[http://bi.galegroup.com/essentials/company/360812?u=tlearn_trl] have trade-in programs that
give consumers store credit for used cell phones in decent shape. Another option is to sell the old
phone. Sometimes the sale is to an individual, handled privately or via sites such as ebay.com.
More often, consumers prefer the convenience of selling to a business that refurbishes and resells
electronic goods (or recycles them responsibly if they have no resale value).
Michigan-based ReCellular
[http://bi.galegroup.com/essentials/company/266764?u=tlearn_trl] is among the market leaders
in this industry, with $100 million in annual revenue. Consumers click to the company’s website,
look up the phone’s make and model, indicate the condition of the phone, and see how much
ReCellular will pay for it. To complete the transaction, they download a prepaid shipping label
and send the phone to ReCellular, which confirms the condition and then mails payment. The
company deletes any personal data, makes any needed repairs, replaces worn or missing parts,
tests the phones to ensure they’re in good working order, and then sells them to consumers in
domestic and international markets.
Businesses like ReCellular are thriving as the world emerges from recession and consumers
seek to cash in on unused goods. Today’s cell phones are more sophisticated than the phones of
just a few years ago, which means they’re worth more when sold. Even basic models can fetch
some money because there is always some level of demand for low-priced, no-frills used phones.
ReCellular handles more than five million old phones every year, selling more than half of its
refurbished units to U.S. consumers and the remainder to distributors in developing countries.
There are also other disposition possibilities for old phones. A growing number of nonprofit
organizations are appealing for used cell phones they can sell to raise money for worthy causes.
For example, Hope Phones and several other groups recently banded together to collect 20,000
used cell phones, with the goal of buying prenatal medical equipment to use in Nepal and the
Democratic Republic of Congo. “If you can help save a woman and give her a chance to have a
healthy baby by simply donating a phone,” says a manager at the United Nations Foundation,
which is involved in the effort, “that’s a powerful opportunity for you to engage and connect
with someone else.”
As another example, Cell Phones for Soldiers, founded in 2004, asks consumers to donate
used cell phones as a fundraiser for buying phone cards for U.S. military members stationed far
from home. The 2,000 U.S. AT&T
[http://bi.galegroup.com/essentials/company/320825?u=tlearn_trl] stores are among the many
collection points, and AT&T provides free downloadable shipping labels for consumers who
can’t get to a store to drop off phones in person. Every year, the charity raises enough money to
send phone cards with a combined value of more than 10 million minutes of talk time so
American men and women in uniform all around the world can call family and friends for free.
In the end, whether reused, resold, recycled, or donated, outdated cell phones have a value
and a future somewhere in the world.
i
CASE QUESTIONS
1. The quote from a U.N. foundation manager talks about donating a cell phone as a “powerful
opportunity . . . to engage and connect with someone else.” Does this quote refer to
motivation, ability, or opportunity to recycle a cell phone by donating it? Explain your
answer.
2. How do the concepts of physical and emotional detachment apply to the way consumers
decide to dispose of their used cell phones?
3. Why would Amazon.com, which has no physical retailing presence, be as interested in
encouraging cell phone trade-ins, same as RadioShack and Target?
4. Once consumers have sold their used phones to a company like ReCellular, how is learning
likely to affect their beliefs about this disposition option?
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