The third largest telecom carrier in the U.S.,
) is providing customers credit worth up to $300 in exchange of
an older phone under its Sprint Buyback Program. Underpinning the
environmental as well as financial benefits of phone recycling,
the company is offering a minimum credit of $20.00 in exchange of
any phone regardless of its condition and carrier. The company
aims to benefit from the ongoing trend of selling certified
pre-owned phones at nominal prices representing a win-win
situation for both the carrier and customers.
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In the phone recycling market, Sprint remains an industry leader
having repurchased 50 million used devices since the launch of
Sprint Buyback Program in 2001. The company had generated savings
worth $100 million for its customers. In 2012, the company
reclaimed 4.4 million phones, while other mega carriers
Verizon Communications Inc.
) had 3.1 million and 3 million phones reclaimed, respectively.
Given the increase in e-waste, which is caused by discarded
mobile phones, phone recycling has become mandatory for end-life
management. This would help in curtailing waste and protecting
the environment. In such an event, it has become a responsibility
of carriers to support this cause and at the same time generate
substantial value through recycling reusable old devices.
Presently, the Environmental Protection Agency estimates that 135
million mobile devices are dumped every year and only 10% of
these enter the recycle market.
We believe that Sprint will curb environmental losses and attract
more customers by through its phone buyback business. This will
likely prove to be a lucrative addition to the company's rich
collection of smartphones including Android, tablets, USB modems,
hotspots and routers, all of which are performing well in the
market. In the third quarter, the company sold nearly 5 million
smartphones which represented 92% of its post-paid sales.
Recently, the company added Samsung Galaxy Mega, HTC One Max and
Nexus 5 on its network attracting customers to its 4G services.
Sprint also activated over 1.4 million
) iPhones in the third quarter, 40% of which belong to new
customers. The company is riding high on the demand for
latest iPhone models - 5s and 5c - that are expected to support
smartphone penetration in the future.
Sprint has a Zacks Rank #3 (Hold).