The Dutch company Fairphone is discontinuing its phone-as-a-service offering, at least for a while. The Amsterdam company launched Fairphone Easy in 2022, which allowed customers to rent their device instead of buying it. Fairphone wanted to focus even more on circularity. Due to disappointing interest, Fairphone is canceling this offer.

“In 2022, we wanted to offer a more sustainable alternative to the more linear market approach of produce-sell-dispose that we see today. “The intention was to initially launch Fairphone Easy in the Netherlands and then expand to other countries,” Fairphone said in a statement on its website. The company viewed PaaS as a win-win for everyone involved. The end user not only received a smartphone, but also security in customer service, repair and replacement. This was all included in the annual subscription.

Praiseworthy concept

“The responsibility for recycling and repair currently lies with the end user. “The average user obviously doesn’t feel sufficiently stimulated,” continues Fairphone. “As a result, many old devices accumulate dust, contributing to the amount of e-waste (e-waste) in the world. By leasing Fairphones rather than selling them outright, we were able to ensure that these devices were returned to us every time and were properly refurbished and recycled at the end of their life cycle.”

The figures show that (Dutch) consumers were not enthusiastic about the model despite “positive press reviews” and “positive customer feedback”. The number of subscribers did not grow as much as Fairphone had hoped. “At first we thought the problem was the price. Many customers have used Fairphone Easy to compare the selling price of the Fairphone 4 with the total cost of ownership. At first glance it seemed much cheaper to buy than to lease. However, the benefits of leasing were not taken into account.”

Smartphone too confidential

However, the real cause of the model’s failure was much simpler. Conversations Fairphone has had with customers and consumers show that people prefer to own their smartphones rather than rent them. One of the reasons given for this was data protection. More importantly, it seemed to be an emotional decision. The smartphone is a much more personal device than, for example, a bicycle or household appliances. Fairphone originally wanted to include the new 5 in the Easy bouquet, but since some customers canceled their orders for this reason, Fairphone intervened.

“We are still a relatively small company and given our ambitions we have to be extremely selective about what we prioritize. As we evaluated our plan, it made no sense to continue investing time and money in Fairphone Easy, especially while we are still trying to solidify our overall position in the market.”