The Value of Consumer Electronics for Trade-in and Re-sale

29th March 2013

This report is focussed on exploring the market opportunities for retailers and manufacturers to trade used consumer electronics products

Key findings
Net lifecycle values presented in the report can be interpreted as a strong business opportunity (on the models presented) for re-use many trade-in programmes.
Global and local resale networks are fundamentally important in ensuring there is the demand for consistently high quality, refurbished ICT and consumer goods.

Overview

Overview

The aim of this report is to help retailers and manufacturers identify the potential market opportunities for trading used products, incentivising trade-in, repair and service provision. These opportunities might be realised by the retailers and manufacturers themselves, or by working with commercial and other partners to share the value while separating retail from service operations.

The project focussed on five products: laptops, TVs, tablet computers, satellite navigation systems and cameras.

Read the executive summary >>

Methodology

The requirements of the project were to identify key impacts on product value through the different steps required for re-use, presenting a notional lifecycle value in order to consider the viability of income to be generated from the resale of used products – doing so through direct selling or using a commercial partner.

Read more on the methodology >>

Conclusions

Conclusions

You can find a summary of the important results from this report in the table below:

Laptops (Mid-range model)
Net residual value:
  • £240 for a 2 year old product (26% of original price)
  • £170 for a 4 year old product (20% of original price)
Trade in is no longer economic after approximately 7 years.
PC tablets
Net residual value:
  • £100 for a 3 year old premium brand product (20% of original price)
  • £70 for a 2 year old product (33% of original price)
Trade-in is expected to be no longer economic after 4-5 years (estimate as the product category is only 3 years old).
LCD TVs
Net residual value for major brands:
  • £40 for a 4 year old 19-22” product (17% of original price)
  • £475 for a 3 year old 55” product (15% of original price)
Trade-in is no longer economic after 5-6 years depending on the size of the LCD TV.
Satellite Navigation
Net residual value:
  • £50 for a 2 year old product (33% of original price)
  • £70 for a 3 year old product (35% of original price)
Trade-in is no longer economic after 3 years for a budget product, 4 years for a mid-range and 5 years for a high-end sat nav.
Digital Cameras
Net residual value:
  • £65 for a 2 year old product (16.5% of original price) (compact)
  • £105 for a 2 year old product (12% of original price) (DSLR/bridge)
Trade-in is no longer economic after 5 years for compact digital cameras and up to and beyond 5 years for DSLR/bridge cameras.

Documents

Documents

For more information on the value of electronic products for trade-in, use the following links:

Case study: Argos Gadget Trade-in >>
Resource efficient business models >>
REBus >>

Switched on to Value report >>
Contact us >>

Where next?

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