This Industry Viewpoint was authored by Dario Betti, CEO of the Mobile Ecosystem Forum
The UK government wants to crackdown on “snatch thefts” of smartphones; an estimated 78,000 Brits had their phones stolen on the streets in the year up to March 2024 – a rise of over 150% compared to the previous 12 months. The government wants a technology solution, but technology by itself might not be able to address the root cause.
Lucrative target
This trend of increasing smartphone thefts isn’t unique to the United Kingdom, it is global. The mobility factor has made it easier for thieves – they can simply walk down the street and snatch a smartphone worth $1,000 or more. The average price of a smartphone has been increasing in recent years. For example, according to Statista, the average global selling price (ASP) of an Android smartphone rose from $236 in 2017 to $286 in 2023, a 17% rise. Meanwhile, the entry-level iPhone 16, launched in September 2024, costs around $800.
Booming demand
Across the globe, smartphones have become an essential tool in our daily lives, and many can’t afford the increased prices. The UK consumer price index increased by over 20% in the three years to May 2024, with food and energy particularly hit by the rise. Despite the importance of smartphones, for many, cheaper second-hand devices are the only option. Law abiding consumers are ending up buying stolen goods without knowing it. Stolen devices are now big business. The ‘opportunity’ caught the attention of organised crime, and thanks to its sophisticated capabilities, stolen devices appear in legitimate shops and online, nationally and internationally.
Supply glitch
The economic crisis and the maturity of the smartphone market has led to people buying fewer new phones or replacing their models at a slower pace. That has meant that fewer phones are reaching the pre-owned market, creating scarcity. The global smartphone market has faced six years of declining sales out of the last seven. Only 2021 showed growth, driven by the release of built-up inventory post-pandemic. In 2016, global sales peaked at 1.47 billion units, but by 2023, this number had dropped by 20%, to 1.16 billion units—numbers not seen since 2013. Good news is coming from the 2024 shipments, and we are expecting a return to some moderate growth.
This scarcity situation has created a “pressure cooker” effect for used phones. On average, smartphones are used for three years before being discarded or entering the second-hand market. According to MEF data, in 2023 there were 4.2 billion smartphones in use worldwide, and a ‘rough’ demand for the replacement of 1.3 billion devices in 2023 as well as 300 million new users that need to get a phone. Despite consumers’ attempts to stretch the life of devices further, with only 1.16 billion sales in the year, a rough 250 million smartphones were “missing” from the used market in that year. Similarly, a shortfall also applied in 2022. This deficit has helped to heat-up demand; an opportunity that crime was quick to spot.
Government response
As part of its strategy to combat the illegal trade of stolen phones, the UK government is calling smartphone manufacturers to a Home Office summit to discuss measures to curb the sale of stolen devices. Manufacturers will be urged to ensure stolen phones can be quickly and permanently disabled, preventing resale on the second-hand market. The government will also build on existing anti-theft features. Additionally, police chiefs will be tasked with gathering intelligence on the individuals and networks behind these crimes, particularly where these stolen phones ultimately end up. This effort will include Operation Opal, which seeks to better understand the black market for mobile phones.
Smartphone protection features
It’s important to note that smartphones already come equipped with several anti-theft features to protect devices in the event of loss or theft:
- “Find My Device” allows users to remotely locate, lock, or erase their phone, automatically activating when a Google account is linked to the device.
- Keypad Lock prevents thieves from immediately accessing the phone.
- Biometric Authentication Features such as fingerprint or facial recognition add extra security.
- Anti-Theft Apps can assist law enforcement in tracking stolen phones and identifying the thief.
- Kill Switch feature blocks unauthorised access by requiring credentials before the phone can be reactivated.
However, criminals have developed ways to circumvent some of these protections. For example, by snatching a phone while it is in use and quickly activating the camera and then switching to airplane mode, thieves can prevent remote tracking or erasure. This makes stealing an ‘active phone’ much more appealing to them. While users can take precautions, the immersive nature of smartphone use makes this a challenge. Some suggest avoiding phone use in public, which may increase security but presents a difficult trade-off for many.
Technology might provide new ways to protect, but criminals are also fighting back.
Recycling: A Potential Solution
The smartphone industry could also help address the problem of theft by promoting recycling. Cheaper smartphone options are one potential solution, but recycling presents an even greater opportunity. In 2022, the Waste Electrical and Electronic Equipment (WEEE) Forum estimated that 5.3 billion mobile phones were discarded globally. Many people hold onto old phones rather than recycling them—often because they don’t know what to do with them—but working phones could be resold in the second-hand market. Even outdated devices contain valuable materials, such as copper and cobalt, which could be reclaimed to help reduce the cost of new phones.
Services such as Pandas allow for mobile phone companies and device vendors to set up automated buy-back services for retail and online services. There are multiple options in the market to allow all players to support a much easier and stronger recycling solution. The production of a smartphone can emit between 30–60 kg of CO2 according to the industry but by supporting re-use and refurbishment, the industry would reduce crime by decreasing demand for cheaper stolen goods, while at the same time improving its own environmental sustainability across the industry as a whole. A win-win for people and planet.
ABOUT THE AUTHOR
Dario Betti is CEO of MEF (Mobile Ecosystem Forum) a global trade body established in 2000 and headquartered in the UK with members across the world. As the voice of the mobile ecosystem, it focuses on cross-industry best practices, anti-fraud and monetisation. The Forum provides its members with global and cross-sector platforms for networking, collaboration and advancing industry solutions.
Web: https://mobileecosystemforum.com/
Twitter: https://twitter.com/mef
LinkedIn: https://www.linkedin.com/company/mobile-ecosystem-forum
Facebook: https://www.facebook.com/MobileEcosystemForum/
Sources:
https://www.theverge.com/2013/7/15/4524172/us-smartphone-trafficking-black-market
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