ABI: 'Green' Handsets Subject to Conflicting Social, Economic Forces
December 15, 2008 // Published as a news service by IHS
Most mobile handset vendors acknowledge public pressure to create environmentally sound products, and it is an issue they need to continue to address through their corporate responsibility charters, according to ABI Research.
Yet, faced with the economic realities of going green, analysts said vendors' appetite for creating biodegradable and recyclable products from sustainable resources often fades away.
"Several proof products that epitomize a vendor's best greening efforts are currently being marketed," said ABI Research director Kevin Burden.
"But our research found that very few handset manufacturers - except those with the scale to do it economically, such as Samsung and Nokia - are highly motivated to produce lines of green phones. Instead, the effort is toward compliance and the trickling down of proven green elements throughout entire product lines."
Scale is the key concept, analysts said. Despite the vast numbers of phones that are produced and discarded every year, few vendors are working on the kind of scale that in their view makes entire green product lines economically viable.
Most mobile handset vendors do have recycling programs, but less than 5% of the annual worldwide volume of handsets shipped come back through recycling or ethical disposal programs.
Analysts said regulatory pressures, coupled with corporate and social responsibilities, have forced the issue for most manufacturers. Many toxic substances have been legally banned, and other substances known to threaten human health and the environment are being phased out voluntarily by many manufacturers.
"A 2008 Nokia survey indicated that 76% of their respondents are more likely to buy phones from companies they consider environmentally responsible," Burden said. "That is a potential economic benefit, but hard to measure. As vendors move green features toward a platform approach for broader implementation, that is when negative economic factors flatten and the environment truly wins."
Source: ABI Research.