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New Paper
16 hours ago
- Business
- New Paper
Singapore start-up on a green mission to keep mobile phones in use for longer
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 have also been in the market since 2021 to wean consumers from device ownership. Apart from renting out phones, laptop, and gaming consoles, 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 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."
Straits Times
a day ago
- Business
- Straits Times
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 have also been in the market since 2021 to wean consumers from device ownership. Apart from renting out phones, laptop, and gaming consoles, 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 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.
