On June 20, 2025, the European smartphone industry will experience a major shift. Two landmark directives from the European Commission will take effect, introducing new regulations on energy labeling and ecodesigns that are set to significantly alter the market.
Smartphone manufacturers and their supply chains have been preparing since the initial drafts of these directives were published in 2022. Over the next few months, companies will need to launch new or updated devices to meet these stringent standards. Any smartphone intended to be sold after June 2025 must comply, meaning tech giants like Apple will likely roll out necessary changes with their next product launches.
These new regulations will impose greater complexity on design and operations, but what remains to be seen is whether vendors will view these changes as a threat or an opportunity.
Law 1: Energy Efficiency Labels for Smartphones
The first major change will be the introduction of energy efficiency labels for smartphones—something familiar to consumers in categories like appliances and electronics since the 1990s. Starting in 2025, all smartphones will carry labels detailing energy efficiency, durability ratings, repairability, battery endurance, and environmental protection measures such as water and dust resistance.
This labeling initiative is designed to steer manufacturers towards more sustainable practices while providing consumers with better information to guide their purchases. However, its effectiveness will hinge on how well the data is distributed across devices. For instance, in other product categories like TVs, the majority of models still score low on energy efficiency, which diminishes the usefulness of the label as a comparison tool.
Law 2: Ecodesign for Durability, Repairability, and Recyclability
The Ecodesign Directive is even more transformative, as it will directly impact the way smartphones are designed, maintained, and recycled. The law will require manufacturers to provide spare parts and repair instructions for seven years after a device has been discontinued. Additionally, devices will need to survive 45 drops from a meter without losing functionality, meet strict scratch resistance standards, and offer battery capacity retention of 80% after 800 charge cycles. Manufacturers must also commit to providing software and security updates for at least five years after the product has been removed from the market.
Furthermore, the Ecodesign Directive mandates transparency on recyclability, mineral sourcing, and IP ratings. Manufacturers must also make diagnostic tools available to consumers, helping them maintain their devices and prolong battery life. These requirements are expected to complicate vendors’ resource and supply chain management, pushing them to work closely with distributors and repair specialists to remain cost-efficient.
Impact on the Market
These regulations are likely to raise production costs, as companies will need to invest in more durable designs, extended software support, and spare parts management. For market leaders like Apple and Samsung, which dominate Europe with 59% of volume share and 80% value share, the transition will be challenging but manageable. Both companies already offer extensive software support for their flagship devices, and they are well-positioned to absorb the additional costs.
Smaller and mid-sized vendors, however, may struggle. These firms often operate with narrower margins and face stiff competition in the budget and mid-range markets. The increased costs of complying with the new regulations could push some of them out of the market. Moreover, with longer-lasting devices and a growing second-hand market, the total demand for new smartphones could shrink, further pressuring smaller players.
Manufacturers may respond by tactically adjusting their product portfolios. Some may shorten product lifecycles to initiate the seven-year support period earlier, while others might introduce region-specific models that comply with EU standards. However, justifying these strategies internally could prove difficult, especially for companies with limited market share.
Uncertainty in the Refurbished Market
From an environmental perspective, the Ecodesign Directive is a significant step toward reducing e-waste and promoting sustainability. By extending smartphone lifespans and making them easier to repair, the law aims to combat premature obsolescence. This could enhance the refurbished smartphone market, as devices will be more durable and easier to maintain.
Yet, there is uncertainty about how the directive will impact the refurbished sector. While better repairability and software support will keep phones usable for longer, the longer first-life of smartphones may decrease their residual value. This could make refurbished devices that are five or more years old less appealing to consumers, as they would be several generations behind current models.
An Opportunity for Vendors to Lead
Vendors now face a choice: quietly comply with the new regulations or take the opportunity to own the narrative. Several manufacturers have faced criticism for “greenwashing” in recent years, but embracing the new durability and repairability standards could allow companies to present themselves as forward-thinking and environmentally responsible.
By highlighting these improvements in their marketing, vendors could justify price increases and enhance the long-term value of their products. Apple, Samsung, and others might even use this opportunity to push their after-sales support programs, like AppleCare+ and Samsung Care+. However, this strategy will only benefit companies that act early, as many vendors may choose to comply with the regulations without drawing attention to them.
In the coming years, the European smartphone market is set for a significant transformation. The new Ecodesign and energy labeling laws will push vendors to innovate and prioritize sustainability. While the road ahead may be challenging, those who adapt quickly and embrace the changes could emerge as industry leaders in the next generation of eco-friendly consumer electronics.