The consumer technology industry stands at a pivotal crossroads. As global e-waste surges—reaching over 53 million metric tonnes annually and projected to climb to nearly 75 million by 2030—the imperative for sustainable business models has never been clearer. Traditional linear models of “take, make, dispose” are giving way to circular approaches that prioritize longevity, reuse, and resource efficiency. This shift is not only a response to mounting environmental pressures and regulatory scrutiny, but also to evolving consumer expectations and the need for resilient, future-proof revenue streams.
Circular business models—such as device-as-a-service (DaaS), refurbishment, upcycling, and pre-loved marketplaces—are rapidly gaining traction among leading consumer tech brands. These models are transforming how products are designed, sold, used, and ultimately reintroduced into the value chain, creating a win-win for sustainability and profitability.
One of the most significant innovations in circularity is the device-as-a-service model. Rather than selling devices outright, companies offer them on a subscription or leasing basis, bundling hardware, software, and ongoing support. This approach extends the useful life of devices, incentivizes manufacturers to design for durability and upgradability, and enables more efficient resource recovery at end-of-life.
For example, Lenovo has pioneered DaaS programs for business customers, providing regular device refreshes, maintenance, and responsible end-of-life management. As consumer awareness grows, similar models are expected to become commonplace in the consumer market, offering users the latest technology without the burden of ownership or disposal.
The DaaS model also unlocks new recurring revenue streams for manufacturers and service providers, while reducing the environmental impact associated with frequent device replacement. By retaining ownership, brands can ensure devices are refurbished, resold, or recycled in a controlled, sustainable manner.
Extending product lifespans is at the heart of the circular economy. Refurbishment programs—where used devices are collected, restored, and resold—are becoming a core strategy for leading brands. Apple, for instance, has invested in advanced robotics to disassemble and recover valuable materials from old devices, while also offering certified refurbished products to consumers.
Upcycling takes this a step further by repurposing devices for entirely new uses. Samsung’s “Upcycling At Home” initiative transforms old smartphones into smart home sensors or baby monitors, while its Wildlife Watch program repurposes devices for conservation efforts. These creative approaches not only reduce waste but also demonstrate the potential for technology to solve broader societal challenges.
Innovative startups are also making waves. Initiatives like Smartphones4Good collect unused phones, securely wipe data, and lease them to entrepreneurs in emerging markets, extending device lifecycles and supporting digital inclusion.
The pre-loved, or second-hand, marketplace is another powerful lever for circularity. By facilitating the resale of used devices, brands and third-party platforms keep products in use longer, reduce demand for new resources, and tap into a growing segment of value-conscious, sustainability-minded consumers.
Manufacturers are increasingly embracing this trend, launching their own certified pre-owned programs or partnering with specialist marketplaces. Each resale not only generates additional revenue but also strengthens customer relationships and brand loyalty. As Raj Shah, Managing Partner at Publicis Sapient, notes: “Obsolescence should be viewed in terms of the device, not the consumer. Each resale is a revenue stream in itself, and when resale value drops, the device can be recycled or upcycled—completing the circular loop.”
Digital capabilities are essential to making circular models scalable and profitable. Advanced data platforms, AI-driven analytics, and integrated customer experiences allow brands to track devices throughout their lifecycle, personalize offerings, and optimize reverse logistics. Publicis Sapient’s research shows that companies advanced in digital transformation are better equipped to unify data, personalize customer journeys, and rapidly innovate new services—key ingredients for successful circular business models.
Moreover, digital platforms enable seamless customer participation in take-back, trade-in, and recycling programs, reducing friction and increasing engagement. Transparency—such as providing clear eco-labels or product carbon footprints—empowers consumers to make informed, sustainable choices.
Circular business models directly address top sustainability goals in the tech sector: reducing carbon emissions, minimizing waste, and increasing the use of recycled materials. They also align with shifting consumer values—Publicis Sapient research finds that nearly 80% of consumers are interested in returning obsolete tech for recycling, and over half would pay more for environmentally friendly or fully recyclable products.
For brands, the benefits go beyond reputation. Circularity creates new revenue streams from subscriptions, resale, and ancillary services (such as carbon offsetting or device insurance), while reducing exposure to volatile resource costs and regulatory risks. As non-recycled materials become more expensive and regulations tighten, circular models will be essential for long-term competitiveness.
For consumer tech brands, embracing circular business models is no longer optional—it’s a strategic imperative. Success requires:
At Publicis Sapient, we help consumer technology companies reimagine their business models for a circular, digital future. By fusing strategy, experience, engineering, and data, we enable brands to unlock new value, meet evolving stakeholder expectations, and lead the industry toward a more sustainable, profitable tomorrow.
Ready to accelerate your circular transformation? Connect with our experts to explore how digital innovation can power your journey to a more sustainable—and successful—business model.