Nokia: circular rental model for smartphones

HMD Global, the company behind Nokia, is introducing a circular rental model with Circular. The goal of the special subscription model is to keep the phones in circulation for as long as possible and is supposed to be particularly sustainable accordingly.

Three-month rental period

Nokia smartphones can be rented for a monthly fee. The standard rental period per smartphone is three months. Within this period, the smartphone is covered against damage. At the end of the three months, users can decide to keep the smartphone. In this case, they are rewarded with bonus points. If they decide against it, the smartphone is checked, refurbished and rented out again by HMD Global. Thus, those who opt for the circular model usually do not receive a new smartphone – but that is not the main goal of a circular model.

The collected bonus points, which are distributed depending on the holding period of the device, cannot be exchanged for monetary benefits, unlike in many other rental models. Instead, they can be used for charitable purposes. The users can freely choose from a list compiled by HMD Global and plant trees or clean polluted rivers, for example. HMD Global also wants to donate smartphones that can no longer be rented out but are still functional. They are to go to charities.

Three devices to choose from

Three different Nokia devices are available for rent at the start of the Circular project. In addition to two newly introduced smartphones, there is also a tablet to choose from. The co-fee starts at 12 euros per month for the tablet. The Nokia G60 smartphone is available for 15 euros and the Nokia XR20 for 25 euros per month. There is also a one-off contract signing fee of 35 euros. Users also have to take care of a mobile phone contract for their devices. HMD Global offers a prepaid contract as part of Circular. Other smartphones, such as the Nokia G11 and G21 models introduced at the beginning of the year, cannot be rented initially.