The first is our lead story in this issue’s special report, which details a deceptively straightforward concept: refurbished mobile phones. In the same way that renovating an existing building will have less environmental impact than building a new one, refurbished phones are greener and cleaner than new models. As our story on page nine demonstrates, this isn’t just the personification of the circular economy. It also addresses issues more closely connected with social integration. Those on lower incomes will struggle to afford the latest smartphone model (or, put another way, to justify the expense over all their other priorities, not least paying the bills and feeding the family). But a refurbished phone might be within their range and still be a step up from what they currently carry in their pocket. Throw in the security of a two-year warranty, and you have baked in peace of mind.
What I found truly fascinating was the granular data behind the business. “One percent of the incoming [old] mobile phones are completely unusable and are dismantled and recycled,” Recommerce sales manager János Zilahi told us. “About 28-30% are not economically viable to refurbish due to being outdated or severely damaged. From these, usable components are salvaged, and the rest is recycled. Of the remaining 70% of smartphones, half are immediately marketable after data deletion and thorough cleaning and repackaging, while the others require minor repairs; these almost invariably involve screen or battery replacement.” What a great business model.
The other story represents something that has become a recurring theme. We have done several interviews with significant pharmaceutical players recently. On this occasion, we were lucky enough to sit down with Cyril Schiever, president of the Mid-Europe Region for MSD, one of the largest pharmaceutical companies in the world. And yet again, the centralized Hungarian healthcare system, or more specifically, a particular byproduct of it, was praised. We are so used to complaints about underfunded hospitals and long waiting times (a complaint you will probably find aired in most countries) that hearing anything positive about the healthcare ecosystem – beyond the quality of the people who work within it – is almost a surprise. And yet, prominent pharma R&D actors keep pointing out that Hungary sits on a data goldmine. Because the information is centralized, and particularly because there is just one authority to deal with, it gives you a far more complete picture of Hungarian healthcare. That’s great for analyzing historical data but also for tracking trials in real time. Naturally, concerns need to be addressed. That data must be protected, most obviously, but it must also be interrogated intelligently. But as Cyril Schiever told us, it is an excellent foundation upon which to build, and one most other countries would dearly like to have.
Robin Marshall
Editor-in-chief
This editorial was first published in the Budapest Business Journal print issue of May 6, 2024.
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