Singapore start-up on a green mission to keep mobile phones in use for longer
Old mobile phones collected by waste management firm Alba Group, which are sent for sorting and recycling. PHOTO: ALBA GROUP
Singapore start-up on a green mission to keep mobile phones in use for longer
SINGAPORE – Singaporeans are replacing their phones every 2.7 years , contributing to some 2.9 million mobile phones being stowed away, a new study shows.
But one Singapore start-up is hoping to change this and keep phones in circulation for five years here. This will be even longer than the global smartphone replacement cycle of 3.5 years on average.
Cinch plans to meet this target by renting out instead of selling the devices to consumers, ensuring that the returned units at the end of the rental period are refurbished to get a new lease of life with another user.
'We're trying to extend the useful life of these devices beyond the average refresh rate,' said Mr Mahir Hamid, chief executive and co-founder of Cinch , which commissioned the study to better understand consumer behaviour.
Its study, conducted between late 2024 and early 2025 , involved interviews with firms that handle e-waste and used devices, as well as a survey of 500 Singapore-based respondents.
Fresh from raising US$28.8 million (S$37 million) in funding led by Monk's Hill Ventures, Cinch is now actively pursuing consumers, letting them pay a monthly fee to rent the latest premium models of phones, laptops and other devices. Cinch will also foot 90 per cent of the repair cost of devices damaged due to accidents.
For instance, the latest Samsung Galaxy S25 Edge with 512GB storage is available from Cinch for a rental fee of $70 a month over two years . At the end of two years, consumers would have paid $1,680 . The same model can be bought from Samsung for $1,808 .
An Apple iPhone 16 Pro Max with 512GB storage can be rented from Cinch for $120 a month over 12 months . This will amount to a total of $1,440 at the end of the year. The same model costs $2,199 upfront from the Apple store.
Customers can also buy direct from Samsung and Apple with an interest-free instalment plan, but it would require them to have a credit card from specific banks such as DBS, OCBC or UOB.
'There is a massive segment of the population for which a $2,000 to $3,000 purchase can be a significant proportion of their monthly salary,' said Mr Hamid. 'A subscription model allows them to access the premium device.'
Cinch, which has been operating here since 2023 , has been leasing mostly to businesses such as those in the retail, logistics, information technology and public relations sectors. Around 10,000 devices such as laptops, smartphones and tablets have been leased, most of which were returned and refurbished for a second or third customer.
'Every refurbished unit needs to be as good as new,' said Mr Hamid. 'If it doesn't meet our standards, it doesn't go back into circulation.'
He said that all returned devices undergo a professional diagnostic sweep and complete data wipe so users do not have to worry about privacy leaks.
Customers can buy their rented devices from Cinch if they wish, but it would likely cost more than buying from retailers such as Shopee or Lazada, said Mr Hamid, urging users to rent instead.
Cinch has also partnered with waste management firm Alba Group since the start of 2025 to collect and recycle devices that can no longer be refurbished for new leases. During recycling, valuable materials such as precious metals and plastics are extracted from the e-waste.
Singapore generates more than 60,000 tonnes of e-waste a year , according to a report by the National Environment Agency in 2018 . This is equivalent to 73 mobile phones disposed of per person in Singapore.
Slowing down the device replacement cycle will reduce the overall volume of electronic waste that needs to be collected, sorted and processed, an Alba spokesperson told The Straits Times.
'Alba supports efforts like Cinch's to keep electronic devices in circulation for a longer period, as it aligns with our mission to reduce e-waste and promote a circular economy in Singapore,' said the spokesperson.
The leadership team of Cinch, which has been operating in Singapore since 2023.
PHOTO: CINCH
The leasing of laptops, smartphones and tablets has become a standard practice among some businesses, as it allows them to access the latest technology without incurring huge upfront costs. Leasing is also a way of reducing depreciating assets.
Leasing firms typically cover a device's configuration, maintenance, repair and eco-friendly disposal.
Telcos Singtel and StarHub have been leasing devices to businesses since 2020 and 2021 respectively, while M1 does so only as part of a more comprehensive suite of tech services.
Singtel started leasing devices to consumers in 2018 , but ceased the programme in 2022. Mr Keith Leong, Singtel's managing director of enterprise, said consumers find that they get better value from buying devices bundled with mobile plans. But businesses in sectors such as government, infocomm and aviation continue to lease from Singtel.
While the device leasing meets the specific needs of some businesses, many consumers still choose to buy devices as it gives them full ownership and control, which can be cost-effective over the long run, said Mr Leong.
'Ultimately, both models provide valuable pathways to equip a mobile workforce effectively,' he said.
Other rental firms such as Circular and ITEZ.SG have also been in the market since 2021 to wean consumers from device ownership. Apart from renting out phones, laptop, and gaming consoles, ITEZ.SG also rents out home appliances such as digital door locks and washing machines.
Leasing an iPhone 16 Pro Max with 512GB storage space would cost between $69 and $82 a month for two years from Circular, depending on the phone's condition. The same model would cost between $92 and $99 a month for two years from ITEZ.SG.
Cinch's adviser Arvin Singh said that Netflix and Grab have proven that ownership of storage discs and cars, respectively, is not essential.
'Netflix for many years now has disrupted ownership of DVDs and hardware... So I think it's not a strange concept for consumers. When it comes to phones, maybe a bit more education is required , ' said Mr Singh.
However, Ms Tracy Tsai, vice-president analyst of consulting firm Gartner , said that phones cannot be compared to DVDs, cars or bicycles as phones carry confidential personal data.
The cost-effectiveness of renting also comes into question if users upgrade frequently, she added. 'But if users want to chase the latest phone every year, renting might be less of an issue.'
Join ST's Telegram channel and get the latest breaking news delivered to you.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
an hour ago
- Business Times
Japan scraps US meeting after Washington demands more defence spending: report
[WASHINGTON] Japan has cancelled a regular high-level meeting with its key ally, the United States, after the Trump administration demanded it spend more on defence, the Financial Times (FT) reported on Friday (Jun 20). US Secretary of State Marco Rubio and Defence Secretary Pete Hegseth had been expected to meet their Japanese counterparts in Washington on Jul 1 for annual 2+2 security talks. But Tokyo scrapped the meeting after the US side asked Japan to boost defence spending to 3.5 per cent of GDP, higher than an earlier request of 3 per cent, the paper cited unnamed sources familiar with the matter, including two officials in Tokyo, as saying. A US official who did not want to be identified confirmed Japan had 'postponed' the talks but said the decision was made several weeks ago. The source did not cite a reason. A non-government source familiar with the issue said he had also heard Japan had pulled out of the meeting, but not the reason for it doing so. US State Department spokesperson Tammy Bruce said she had no comment on the FT report when asked about it at the regular briefing, and the Pentagon also had no immediate comment. Japan's embassy in Washington did not respond to a request for comment. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The Financial Times said the new higher spending demand was made in recent weeks by Elbridge Colby, the third-most senior Pentagon official, who has also recently upset another key US ally in the Indo-Pacific by launching a review of a project to provide Australia with nuclear-powered submarines. In March, Japanese Prime Minister Shigeru Ishiba said that other nations do not decide Japan's defence budget after Colby called in his nomination hearing to be under secretary of defence for policy, for Tokyo to spend more to counter China. Japan and other US allies have been engaged in difficult trade talks with the United States over US President Donald Trump's worldwide tariff offensive. The FT said the decision to cancel the Jul 1 meeting was also related to Japan's Jul 20 Upper House elections, at which the ruling Liberal Democratic Party is expected to suffer a loss of seats. It comes ahead of a meeting of the US-led Nato alliance in Europe next week, at which Trump is expected to press his demand that European allies boost their defence spending to 5 per cent of GDP. REUTERS
Straits Times
an hour ago
- Straits Times
Japan scraps US meeting after Washington demands more defence spending
Japanese Prime Minister Shigeru Ishiba gives his opening speech at the beginning of the meeting with US Secretary of Defense Pete Hegseth at his office in Tokyo, in March. PHOTO: REUTERS WASHINGTON - Japan has cancelled a regular high-level meeting with its key ally the United States after the Trump administration demanded it spend more on defence, the Financial Times (FT) reported on June 20. US Secretary of State Marco Rubio and Defence Secretary Pete Hegseth had been expected to meet their Japanese counterparts in Washington on July 1 for annual 2+2 security talks. But Tokyo scrapped the meeting after the US side asked Japan to boost defence spending to 3.5 per cent of GDP, higher than an earlier request of 3 per cent, the paper cited unnamed sources familiar with the matter, including two officials in Tokyo, as saying. A US official who did not want to be identified confirmed that Japan had 'postponed' the talks but said the decision was made several weeks ago. The source did not cite a reason. A non-government source familiar with the issue said he had also heard Japan had pulled out of the meeting, but not the reason for it doing so. US State Department spokesperson Tammy Bruce said she had no comment on the FT report when asked about it at regular briefing, and the Pentagon also had no immediate comment. Japan's embassy in Washington did not respond to a request for comment. The Financial Times said the new higher spending demand was made in recent weeks by Mr Elbridge Colby, the third-most senior Pentagon official, who has also recently upset another key US ally in the Indo-Pacific by launching a review of a project to provide Australia with nuclear-powered submarines. In March, Japanese Prime Minister Shigeru Ishiba said that other nations do not decide Japan's defence budget after Mr Colby called in his nomination hearing to be under secretary of defence for policy for Tokyo to spend more to counter China. Japan and other US allies have been engaged in difficult trade talks with the United States over US President Donald Trump's worldwide tariff offensive. The FT said the decision to cancel the July 1 meeting was also related to Japan's July 20 Upper House elections, at which the ruling Liberal Democratic Party is expected to suffer a loss of seats. It comes ahead of a meeting of the US-led NATO alliance in Europe next week, at which Mr Trump is expected to press his demand that European allies boost their defence spending to 5 percent of GDP. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
an hour ago
- Business Times
Meta discussed buying Perplexity before investing in Scale
[LOS ANGELES] Meta Platforms held discussions with artificial intelligence (AI) search startup Perplexity AI about a possible takeover before moving ahead with a multibillion-dollar investment in Scale AI, according to sources familiar with the matter. The two companies could not come to an agreement and decided not to pursue the deal, said the sources, who asked not to be named as the details of the talks are not public. The financial terms under discussion could not be learned. Perplexity recently closed a new round of funding at a US$14 billion valuation. Meta also attempted to hire Perplexity chief executive officer Aravind Srinivas to join the social media company's new 'superintelligence' team, which is focused on building more powerful AI systems, the sources said. The talks with Meta, which have not previously been reported, highlight Meta CEO Mark Zuckerberg's willingness to use deals and big hires to catch up in the AI race. The talks took place before Meta finalised a US$14.3 billion investment in Scale AI that gives it a 49 per cent stake in the data-labelling startup. Meta and Perplexity did not respond to requests for comment. Founded in 2022, Perplexity has emerged as one of the most prominent startups using generative AI to rethink core Internet services. Perplexity is taking on Alphabet's Google by offering an AI tool that summarises search results, lists citations for its answers and helps users refine their queries to get the best responses. The startup is also developing an AI-powered web browser. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Frustrated with the pace of Meta's AI development, Zuckerberg is making a concerted push to poach top AI talent from across the industry with lucrative pay packages. Meta has succeeded in hiring Scale AI's former CEO Alexandr Wang, as well as top researchers from Google DeepMind and Sesame AI. Not everyone is jumping to join Meta, however. OpenAI CEO Sam Altman said in a podcast this week that some on his staff had been approached by Meta with offers of US$100 million signing bonuses and even bigger compensation packages, but had declined to join the company. Meta has been in talks with former GitHub CEO Nat Friedman to recruit him to the new team, according to sources familiar with the matter. The company has also been working on hiring Daniel Gross, the CEO of Safe Superintelligence, a research lab founded by former OpenAI chief scientist Ilya Sutskever, the source said. Meta has also held early discussions for a computing deal in which Safe Superintelligence would use Meta's data centre infrastructure, the source said. Representatives for Safe Superintelligence did not immediately respond to a request for comment. Other Big Tech firms, including Google and have tried to establish themselves as the backbone of the AI ecosystem by providing chips and cloud computing resources to AI startups. Meta has not gone this route to date. BLOOMBERG
