3.1. Smartphone Business Models and Pathways in Thailand

Figure 1 illustrates the business pathways supporting smartphone life extension in Thailand’s informal second-hand smartphone market. Interviews with kiosk operators and upstream stakeholders revealed that Thailand’s second-hand ecosystem integrates interconnected B2B, business-to-consumer, and customer-to-customer pathways (Fig. 1). Collectors act as principal entry points by sourcing smartphones from individual consumers, organizational bulk sales, and manufacturer trade-in programs before redistributing them to downstream distributors, refurbishers, and retailers. The ecosystem also involves smartphone manufacturers, telecommunications operators, repair shops, and recyclers, forming interconnected value chains that extend smartphone lifetimes through reuse, repair, and resale before the final material recovery ^16,17. Similar patterns have been observed in China, where large-scale electronic product networks coexist with informal vendors ¹⁸. However, in Thailand, the collection system is dominated by small kiosks in department stores and marketplaces, reflecting a fragmented and largely informal structure that contrasts sharply with the more centralized models in other regions.

Interviews with upstream stakeholders further revealed that manufacturers’ trade-in programs primarily function as sales and customer retention strategies rather than maximizing refurbishment. This observation is consistent with studies showing that trade-in programs are designed to stimulate replacement purchases while facilitating product returns to secondary markets ¹⁶. According to smartphone manufacturers’ marketing representatives, trade-in campaigns are designed to encourage consumers to upgrade their devices by offering promotional incentives and trade-in discounts. Smartphones collected through these programs are subsequently transferred to specialized third-party companies (e.g., Remobie and ComAsia) for sorting, resale, refurbishment, or recycling rather than being refurbished directly by manufacturers. This finding highlights the important role of independent market actors in extending smartphone lifespans in Thailand’s informal ecosystem.

Refurbishers comprised a relatively small proportion of the system. Unlike in Europe, where refurbishers are supported by certification schemes and embedded in CE strategies ^17,19, most kiosk operators reported undertaking only minor repairs, such as battery or screen replacement, before resale, whereas extensive refurbishment remained uncommon. Consequently, smartphone life extension is achieved primarily through decentralized reuse networks supported by minor repairs rather than through dedicated refurbishment businesses. This finding supports Wieser and Tröger’s ²⁰ argument that the inner loops of circularity—reuse, repair, and redistribution—are more cost-efficient than the outer loops (refurbishment and recycling) in contexts with weak institutional support. This market structure provides a foundation for understanding why reuse dominates refurbishment in Thailand’s informal smartphone market, as discussed in the following section.

Overall, the findings demonstrate that smartphone life extension in Thailand is primarily achieved through decentralized market actors rather than by manufacturer-led refurbishment programs. The dominance of collectors, distributors, and independent kiosks enables the rapid circulation of used smartphones through reuse and minor repairs, providing a foundation for understanding why reuse has become the predominant life-extension strategy in Thailand’s informal smartphone market, as discussed in the following section.

3.2. Evidence for the Dominance of Reuse over Refurbishment

Before investigating the factors associated with smartphone life extension, chi-square analyses were conducted to determine whether business practices differed between kiosks in inner and outer Bangkok. No statistically significant differences were observed in repair acceptance, smartphone acquisition practices, or the age category of smartphones that remained in circulation (Table 1), indicating broadly consistent business operations across Bangkok. The only significant difference concerned brand composition, with kiosks in inner Bangkok reporting a higher proportion of iPhone sales than those in outer Bangkok (\(\chi^2=4.982\), \(p=0.026\)). Consequently, the combined dataset was considered appropriate for subsequent analyses.

The findings show that the majority of kiosks (83%) sourced their second-hand inventory directly from individual customers, with 66% preferring phones in good cosmetic and functional condition that could be resold, thereby avoiding extensive refurbishment. This emphasizes the dominance of reuse loops in Bangkok’s second-hand ecosystem, where devices circulate without major repairs. Such practices are not only economically attractive but also environmentally efficient because reuse requires fewer material and energy inputs than refurbishment or recycling ²⁰. This finding provides direct empirical evidence for the central proposition that reuse, rather than refurbishment, is the dominant product life-extension pathway in Thailand’s informal smartphone market.

To further investigate the factors associated with smartphone life extension, chi-square analyses were conducted to examine associations between smartphone age categories and key purchasing characteristics (Table 1).

A significant association was found between smartphone age category and iPhone popularity (\(\chi^2 = 10.225\), \(p=0.006\)). Smartphones remained in circulation for significantly longer in kiosks, where iPhones constituted the dominant resale product compared with kiosks specializing in other brands, whereas no comparable relationship was observed for Samsung. Rather than indicating a brand effect alone, these findings suggest that smartphones with higher residual values and stronger consumer confidence are better suited to Thailand’s reuse-oriented informal market, where repeated resale with minimal repair is economically preferred. Similarly, previous studies highlighted consumer trust, warranty, and perceived product value as important factors influencing the acceptance of second-hand and refurbished smartphones ^8,16,21.

Purchasing considerations also varied according to smartphone age. Price exhibited the strongest association with smartphone age (\(\chi^2=14.582\), \(p<0.001\)), indicating that purchasing decisions varied with devices’ remaining lifespan. Price was more frequently identified as an important purchasing consideration for smartphones among younger age groups, whereas older smartphones remaining in circulation were less dependent on affordability alone. By contrast, external conditions and functionality were not significantly associated with smartphone age, suggesting that cosmetic appearance and technical specifications do not independently explain prolonged product circulation. Brand consideration showed a marginal ordinal trend, indicating that consumer perceptions of brand value may become increasingly important as smartphones remain in the secondary market for longer periods.

Overall, the inferential analyses support the descriptive findings that smartphone life extension in Thailand is driven primarily by direct reuse rather than extensive refurbishment. Within Thailand’s decentralized informal market, independent kiosks preferentially acquire smartphones that require little intervention, allowing high-value devices to circulate repeatedly through successive resale transactions. Therefore, refurbishment functions mainly as a supporting activity involving minor repairs, rather than a separate business model. These findings suggest that the interaction between product value, consumer trust, and the characteristics of Thailand’s informal market creates conditions under which reuse becomes the dominant circular strategy. Collectively, these findings demonstrate that in middle-income economies where informal markets remain dominant, CE transitions may depend as much on decentralized market organization, consumer trust, and product value as on investments in formal refurbishment infrastructure.

3.3. Enabling and Constraining Factors

In addition to consumer preferences, shop owners identified several factors influencing the sustainability of Thailand’s second-hand smartphone market (Table 2).

Among these, product warranty or standard assurance received the highest support (\(\textrm{mean}=2.63\)), followed by the availability of repair and refurbishment services (\(\textrm{mean}=2.03\)) and collection systems (\(\textrm{mean}=1.44\)). In contrast, government support received the lowest rating (\(\textrm{mean}=1.16\)), indicating that the market currently relies more on private-sector initiatives than on formal institutional support.

Warranty and after-sales assurance emerged as the strongest enabling factors, with nearly four of five respondents identifying them as highly important. Kiosk operators have consistently reported that even short-term warranties increase consumer confidence by reducing the perceived risk associated with purchasing second-hand smartphones. Although most devices were sold without extensive refurbishment, warranty provisions served as a practical mechanism for building trust between sellers and consumers. This finding is consistent with previous studies demonstrating that warranty and quality assurance significantly improve consumer acceptance of reused and refurbished electronic products ²².

The availability of repair services was the second most important enabling factor (\(\textrm{mean}=2.03\)). However, the interviews indicated that the repair activities were generally limited to minor interventions, particularly battery and screen replacements, rather than comprehensive refurbishment. These services primarily restore devices to reasonable conditions, allowing smartphones to re-enter the market with minimal processing. This finding reinforces the business pathways described in Section 3.1 and the inferential analyses presented in Section 3.2, both of which indicate that reuse, rather than extensive refurbishment, constitutes the dominant product life extension strategy in Thailand’s informal smartphone market.

The collection system received moderate support (\(\textrm{mean}=1.44\)). While most kiosk operators source smartphones directly from individual consumers, the interviewees described the collection channels as fragmented and dependent on walk-in customers, personal networks, and informal intermediaries. Consequently, the continued availability of reusable smartphones relies largely on decentralized commercial relationships rather than coordinated reverse logistics systems. Unlike the formal collection models reported in several high-income countries ⁴, Thailand’s informal market continues to depend on independent collectors, retailers, and repair shops to maintain product circulation.

Government support received the lowest average score (\(\textrm{mean}=1.16\)), with almost half the respondents reporting that government policies had little or no influence on their businesses. Interviewees generally expressed limited awareness of initiatives promoting repair, reuse, or circular-economy practices in the smartphone sector. These findings suggest that Thailand’s second-hand smartphone market has developed largely through market-driven coordination rather than formal policy intervention. Consequently, trust is established primarily through retailers’ reputations, warranty provisions, and long-standing business relationships rather than government-backed certifications or standardized refurbishment systems.

The findings further indicate that the sustainability of Thailand’s informal smartphone market depends not only on economic incentives but also on social and entrepreneurial motivations. Among kiosk operators, 32% reported entering the business primarily to provide affordable smartphones for lower-income consumers, 28% cited continuing family businesses, and 20% emphasized the higher profitability of second-hand devices compared with new smartphones. These motivations suggest that the informal market generates both commercial and social value by expanding smartphone access while supporting long-established local enterprises, consistent with observations of entrepreneurial behavior in other informal electronic product markets ¹⁹.

Overall, the findings demonstrate that consumer trust represents the principal enabling condition for extending smartphone life in Thailand’s informal market. Warranty provisions, retailer reputation, and minor repair services collectively support continued product circulation, whereas fragmented collection systems and limited government involvement constrain the expansion of formal refurbishment pathways. These results further suggest that in middle-income economies where informal markets remain dominant, successful CE transitions may depend as much on trust-based market relationships as on investments in formal refurbishment infrastructure.

3.4. Implications for CE Transitions

These findings demonstrate that CE transitions in emerging economies may differ from those commonly described in high-income countries. Whereas CE policies often emphasize formal refurbishment systems and reverse logistics, Thailand’s second-hand smartphone market relies primarily on informal collectors, retailers, and repair shops to extend product lifetimes. Rather than viewing these informal actors as barriers to circularity, they should be recognized as important contributors to product reuse and resource efficiency.

The predominance of reuse observed in this study is consistent with the CE hierarchy in which direct reuse generally preserves more product value and requires fewer additional resources than refurbishment or recycling ²⁰. Most kiosk operators preferred smartphones that could be resold with little or no repair, whereas refurbishment was mainly limited to minor battery or screen replacements. These findings indicate that refurbishment primarily supports reuse rather than serving as a dominant life-extension strategy.

The significant association between smartphone age and iPhone popularity should also be interpreted in the context of Thailand’s market rather than as a brand effect alone. Smartphones with higher residual values, longer software support, and stronger consumer confidence are better suited to Thailand’s decentralized informal market, where retailers seek to minimize refurbishment costs and inventory risks. Thus, the observed “iPhone effect” reflects the interaction between product characteristics and the country’s reuse-oriented market structure.

These findings extend previous consumer-oriented studies of smartphone lifetime extension by showing that prolonged product circulation is determined not only by purchasing preferences but also by interactions among consumer demand, retained product value, and secondary-market organization. While previous studies have primarily examined factors influencing consumer acceptance of reused or refurbished smartphones, such as price, product quality, brand, trust, and warranty ^7,10,16,21, this study shows how these factors translate into actual life-extension pathways within an informal secondary market. Smartphones with sufficient residual value and consumer confidence can circulate repeatedly through decentralized resale networks with minimal intervention, and repair and refurbishment support this reuse process. Thus, this study advances the existing understanding by linking consumer-level determinants with product characteristics and market structure to explain smartphone lifetime extension.

From a policy perspective, Thailand’s second-hand smartphone market remains largely market-driven, with warranty systems providing greater support for reuse than formal government intervention. Instead of replacing informal markets with fully formalized systems, policymakers should strengthen the existing reuse networks through voluntary quality standards, improved collection systems, collaboration with manufacturers, and greater consumer confidence in second-hand products. Such approaches may better support CE transitions in Thailand and other middle-income countries, where informal markets remain central to extending product life.