bolttech, Sumitomo Corporation to tackle Asia’s used smartphone market

Reusing old phones, seen at 430 million units by 2027, benefits the environment.

Singapore-headquartered global insurtech firm Bolttech Holdings Ltd. (bolttech) and Tokyo-based Sumitomo Corporation have joined forces to launch a service that would make the resale of used devices, including smartphones, in Southeast Asia much easier. 

“One major challenge is the varying regulations on the imports and exports of used smartphones across Southeast Asia,” Tomoyuki Shionoya, head of smart service business unit at Sumitomo Corporation, told Insurance Asia. 

Sumitomo Corporation will offer embedded device protection solutions to its distribution partners in the region, including instalment-based device sales and upgrade programmes.

The partners plan to expand their device distribution operations across Asia, aiming to reach 10 million customers by 2030, Philip Weiner, CEO for Asia at bolttech, told Insurance Asia via Zoom.

bolttech operates in 37 markets and connects more than 700 distribution partners with 230 insurers that offer more than 6,000 insurance products globally.

Sumitomo Corporation brings decades of experience in telecommunications, including mobile retail and used device distribution in Japan and overseas markets like Mongolia and Ethiopia. 

“Our initial plans for this joint venture will focus on Southeast Asia, targeting the region’s growing demand for cost-effective smartphone services and insurance-backed embedded device solutions,” Weiner said.

Used smartphone shipments are expected to grow 8.8% annually to 431.1 million units by 2027 from 2022, according to International Data Corp.

Weiner projects “very strong growth” in Southeast Asia’s smartphone industry, with many markets still having room for phone adoption. For example, smartphone penetration in Indonesia is close to 60%, compared with 90% in the US.

“While developed markets like Hong Kong, Taiwan, Korea, and Japan won’t see the same kind of mobile growth—they’re already mature—the developing markets still have a lot of room to expand,” he pointed out.

Sumitomo Corporation and bolttech want to help consumers extend the lifespan of their smartphones.

Sumitomo Corporation’s global resale network and partnerships with telecommunication operators help match the supply of used phones in underserved markets, Shionoya said in an emailed reply to questions.

Many phones are discarded or barely used after upgrades, Weiner said.

“We want to keep these phones in circulation because reusing devices not only makes tech more accessible but also benefits the environment,” he said. “Phones contain rare minerals, and manufacturing them consumes significant energy and emits greenhouse gases.”

Although the launch date for the service had not been announced, the groundwork has been laid. In June, the insurtech raised $147m in Series C funding, bringing its valuation to $2.1b.

“We have multiple projects in various phases of the cycle, and I think this will benefit our partners and customers within the next quarter,” Weiner said.