Memory crunch makes refurbished kit look a lot less secondhand

Memory prices are soaring, prompting more businesses to opt for refurbished technology, according to suppliers. Warranties spanning up to three years are making secondhand equipment a more appealing purchase. Memory costs have surged more than fourfold this year as manufacturers focus on high-bandwidth memory for servers used in AI data centers.

Many companies are extending the lifespan of their gear in an uncertain economic climate. Ben Caddy, senior analyst at Omdia, predicts that by 2030, 35 percent of all hardware sold will be returned by partners, driven by the economic logic of recovering value from aging kit. This trend is already aiding some customers by unlocking capital for refresh plans.

However, refurbishing smartphones remains a challenge for suppliers, as customers are reluctant to trade in their old devices. PCs and other equipment face similar availability issues, according to Jon Sansom, head of GreenSafe IT. XTENTEC, a tech lifecycle specialist, now offers trade-ins when customers buy new gear, financing the residual value once equipment is returned between years two, three, or four.

Such support, including HP Care Pack services, makes refurbished equipment more attractive to buyers. Customers are increasingly concerned with reducing their carbon footprint, with many public and private sector tenders mandating it. However, the most crucial factor for many is trust in the refurbished equipment and the process.

Patrick Molberg, CEO of Advania Finance, emphasizes the need for standard verification methodologies across the industry. He also argues that lifecycle services should be integrated into purchasing decisions rather than added later. Joosten suggests that US tech companies' focus on quarterly sales and market share could hinder refurbishment efforts, advocating for a circularity-specific market share figure.