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Improvements Needed on After-Sales Warranty and Repair Service for Mobile Phones & Earbuds Urging for Statutory Measures to Promote Sustainable Consumption

  • 2024.03.14

Smartphones and wireless Bluetooth earbuds have become daily necessities for many people. Constantly evolving models and functionalities have however attracted consumers to spend money on replacements, resulting in a large amount of electronic waste over time. As mobile phones and earbuds are relatively durable electronic products, with many costing a hefty sum from several thousands to over ten thousand, it is reasonable for consumers to expect mobile phones and earbuds brands to provide better repair and warranty programmes while supporting environmental protection.

The Consumer Council surveyed after-sales warranties, extended warranties, and out-of-warranty repair service coverage and charges of 6 mobile phone brands and 11 earbuds brands (of which 6 are also mobile phone brands) on the market between January and February this year. It was revealed that considerable variations were found in plan charges, repair fees, and time limits for purchasing extended warranty programmes (EWPs) for mobile phone products. Generally, free repairs within the warranty period are only applicable to damages neither caused by human factors nor accidents. For example, the cost of repairing a cracked phone screen under after-sales warranty ranged from a minimum of $483 to a maximum of $5,770, equivalent to 17.9% to 36.1% of the recommended retail price (RRP) of the respective mobile phones, indicating a significant difference. It was also found that, taking into consideration the fees of joining EWPs, the overall costs of repairs may not necessarily be more cost-effective than that of repairing per incident without warranty, thus dampening consumers’ desire to extend warranties. On the other hand, environmental policies and related information of some of the surveyed brands lack transparency. Compared to the European Union Regulation (EU) 2023/1670, which stipulates that manufacturers should keep spare parts for at least 7 years after the date of end of placement on the market, the inventory of spare parts of the surveyed mobile phone brands only ranged approximately from 2 to 4 years. The Council advocates the Government and the industry to study extending and laying down the period of product maintenance and availability of spare parts with reference to relevant EU regulations, so as to reduce obstacles that consumers may encounter when repairing mobile phones, and to support sustainable consumption.

This market survey covered the more popular brands and models of mobile phones and earbuds in Hong Kong, including 6 flat smartphones, 3 smartphones with a foldable screen, and 11 true wireless Bluetooth earbuds with active noise cancellation. During the survey period, the Council wrote to and sent questionnaires to a total of 11 brands requesting for information, among which 3 did not reply or responded briefly. Information on the related brands was obtained from their official websites and through telephone enquiries made by posing as general consumers.

Only 1-year After-Sales Warranties for Smartphones Regardless of the Price
3 Brands Had No Extended Warranty or Must Buy at the Time of Purchase

The prices of the 9 smartphone models surveyed ranged from the lowest of $2,699 to the highest of $15,988, a difference of nearly 5 fold, and over half cost more than $7,500, but all only provided a 1-year warranty, which may disappoint consumers who expect longer warranty periods for higher-priced products. In terms of warranty coverage, only damages or malfunctions not caused by human would be eligible for free repair, or consumers had to pay for repair and/or parts replacement. Even during the warranty/extended warranty periods, some brands may charge additional fees, such as inspection fee or labour cost, which usually ranged from $120 to $200.

In order to extend the lifespan of mobile phones, some consumers may choose to pay for an EWP. However, 2 mobile phone brands did not have such offer, implying that if a mobile phone malfunctions after the 1-year after-sales warranty period, even if it is not due to accidents or human factors, consumers could only pay for inspection and repair at their own costs, an after-sales service inferior to other brands. For the remaining 4 brands, fees of EWPs ranged from $539 (about 20% of the phone’s RRP) to $1,899 (about 14% of the phone’s RRP), an absolute difference in price of over 2.5 times. If consumers are interested in joining an EWP, they should pay attention to the purchase period set by different brands. In this survey, the brand with the shortest time limit required consumers to purchase an extended warranty at the time of purchasing the phone, while the brand with the most flexible offer allowed consumers to join its EWP after the expiry of the original warranty period as long as the phone passed the inspection.

Joining the plan does not mean that all damages will be repaired unconditionally and free of charge. Although most brands’ EWPs offered free battery replacement if the capacity of the battery fell below 80% of the original specification due to normal wear and tear, 1 brand charged a fee of $300 for parts. Taking repairing the rear cameras as an example, the costs of repair within the extended warranty period ranged from $400 to $1,055; if repair costs are to be calculated as a percentage of the RRPs of the respective phones (excluding the fee for the EWP), the said proportions ranged from the lowest of 4.7% to the highest 22.2%, indicating a huge variation. If the cost of purchasing an EWP is also considered, the total cost of repairing the rear cameras of 1 model within warranty was $988 more than the cost of repairing at one’s own expense without warranty, which may discourage some consumers from joining an EWP. The Council therefore recommends the mobile phone industry to review its policy on extended warranties and repair services to improve protection for consumers who have enrolled in such programmes. Prior to enrolling in an EWP, consumers should first understand the free coverage of the programme, and circumstances under which repairs require extra charges. In addition, personal habits of using mobile phones should also be considered when assessing the need to join an EWP. Consumers who wish to minimise repair costs should take extra care in the daily use of their mobile phones, such as avoiding liquid penetrating into the phone or dropping and cracking the screens.

Vast Differences in Earbuds Warranty Periods
Only 1 Brand Offered Extended Warranty

True wireless Bluetooth earbuds are generally cheaper than smartphones, and the survey found that after-sales warranty periods of earbuds varied greatly, with 8 brands offering 12 months, and 3 brands offering 2 years or 36 months of warranty. Brands offering longer warranty periods also had higher product prices, which is more reasonable to consumers. True wireless Bluetooth earbuds are lightweight and compact, making them easier to lose. 9 brands indicated that they offered the option to buy one side of the earbuds, while 2 indicated that both the left and right earbuds had to be replaced together for successful connection. Repair policies of 2 brands were less satisfactory, which said that no repair services would be provided for their products beyond the 1-year warranty period. Only 1 out of 11 brands offered an extended warranty option at a cost of $249, accounting for about 13% of the retail price of the earbuds.

Additionally, consumers might not be able to enjoy original warranty for both mobile phones and earbuds if the product was parallel-imported. All brands which responded indicated that their original warranty only applied to original licensed products purchased from authorised retailers in Hong Kong. If consumers purchase parallel imports, 3 brands would still provide repair services, but at an additional charge, or treat them as out-of-warranty repairs.

Calling for Study on Introducing Measures to Optimise Warranty Policy

In this survey, only 3 mobile phone and 3 earbuds brands had responded with relatively more specific maintenance period for their products, including the period of time for which maintenance service is still available after a product is launched on the market and after it is discontinued, while other brands were more ambiguous in their responses, such as stating that maintenance service could be provided if spare parts were available, or depending on the product’s lifecycle, and so on, resulting in a relatively low level of information transparency. In addition, the survey also found that the inventory of spare parts of the surveyed mobile phone brands generally only lasted for about 2 to 4 years, which means that even if other functions of the product itself are still performing well, repairs may not be possible due to unavailability of spare parts. Contrarily, in August 2023 the European Commission issued regulations on eco-design requirements for mobile phones and tablets, including requiring manufacturers to keep relevant spare parts for at least 7 years after the date of end of placement on the market, and to provide information on the repair and maintenance of relevant parts. The Council calls on the Government and manufacturers to make reference to the aforementioned EU regulations to study improving the transparency of maintenance information and extend the inventory period of spare parts, so as to maximise the durability and lifespan of products, thus reducing electronic waste.

Furthermore, not all surveyed brands provided consumers with environmentally friendly measures such as trading in of old phones. Although mobile phones do not currently fall into the scope of the regulated electrical equipment (REE) and sellers do not have a statutory obligation to remove old products, electronic product brands should be more knowledgeable than consumers in handling electronic waste, especially products with built-in lithium batteries. The Council therefore urges the industry to improve its recycling and trade-in policies in contribution to environmental protection. Consumers should also assess their actual needs before purchasing new products. If it is indeed necessary to purchase a new device, consider giving the old one to those in need or reselling it to minimise waste.

 

Download the article (Chinese only): https://ccchoice.org/569warranties

 

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