The Rise of Subscription and Circular Business Models in Consumer Tech: From Device-as-a-Service to Pre-Loved Marketplaces

The consumer technology sector is undergoing a profound transformation. As global demand for devices—smartphones, laptops, wearables, and smart home gadgets—continues to surge, so does the urgency to address the environmental impact of their production, use, and disposal. The traditional model of selling devices outright is giving way to innovative, recurring revenue models that not only drive profitability but also support sustainability. This shift is redefining how brands engage with customers, manage operations, and create value throughout the product lifecycle.

The E-Waste Challenge and the Need for Circularity

E-waste is one of the fastest-growing waste streams worldwide, with projections nearing 75 million metric tonnes by 2030. The proliferation of devices, rapid product obsolescence, and the complexity of recycling tightly integrated components all contribute to this crisis. Only a fraction of e-waste is recycled, leaving valuable materials and hazardous substances to pollute landfills and ecosystems. This challenge is driving the imperative for consumer tech brands to rethink their business models and embrace circularity.

Circular Business Models: Extending Value Beyond the First Sale

Device-as-a-Service (DaaS):

Instead of a one-time sale, DaaS bundles hardware, software, and support into a subscription. This model, already popular in the enterprise sector, is gaining traction with consumers. It incentivizes manufacturers to design for durability, repairability, and eventual reuse or recycling. Customers benefit from regular upgrades, maintenance, and a seamless experience, while brands secure recurring revenue and deeper customer relationships.

Trade-In and Refurbishment Programs:

Leading brands are building robust trade-in and refurbishment programs, enabling customers to return old devices for credit toward new purchases. These devices are then refurbished and resold, extending their lifecycle and reducing e-waste. Each time a device is resold, it generates value for the manufacturer and keeps products in use longer. This approach not only reduces environmental impact but also opens up new revenue streams and customer segments.

Pre-Loved Marketplaces and Peer-to-Peer Platforms:

The rise of marketplaces for pre-owned devices—whether operated by brands or as peer-to-peer platforms—has become a significant growth area. These marketplaces offer quality assurance, warranties, and brand trust, making it easier for consumers to buy and sell used devices. By facilitating second and third ownership cycles, brands can maintain customer engagement and capture value throughout the product’s life.

Operational and Digital Shifts Required for Success

Transitioning to subscription and circular models requires a fundamental rethinking of operations, digital infrastructure, and customer experience:

Customer Experience: Building Trust and Loyalty

Today’s consumers are more intentional than ever, seeking brands that align with their values and are transparent about their environmental and social impact. Research shows that a majority are willing to pay more for sustainable products, especially among millennials and Gen Z. However, skepticism about “greenwashing” is high. Brands must provide clear, standardized, and transparent information about the environmental impact of their products—through eco-labels, third-party certifications, and honest communication about progress and challenges.

Profitability and Sustainability: A New Value Equation

Circular and subscription models are not just about doing good—they are good for business. They create new revenue streams, improve operational efficiency, and foster long-term customer relationships. Operational efficiencies from sustainable practices—such as energy savings, waste reduction, and optimized logistics—translate directly into cost savings and margin improvement. Investors are increasingly prioritizing companies with credible sustainability strategies, seeing them as better positioned to weather regulatory changes and future-proof their business.

The Path Forward: Embracing Circularity for Competitive Advantage

The future of consumer technology is circular, data-driven, and customer-centric. Brands that embrace sustainable business models, invest in digital transformation, and prioritize transparency will not only reduce their environmental footprint—they will unlock new sources of value, resilience, and growth. The journey requires:

At Publicis Sapient, we partner with technology leaders to drive this transformation—helping them unlock new value, build trust, and shape a more sustainable digital world. The brands that lead on circularity and subscriptions will not only help solve the e-waste crisis but also secure their place in a more resilient, profitable, and purpose-driven future.