The National Scene
The recovery and reuse of discarded material is a critical element of sustainable development as Australia endeavours to address a number of issues dealing with the environment.
Currently many items of an electrical and electronic nature are being disposed of in landfill. As explained later in this report it is the intention of the Federal Government, State Governments and Territories that there should be a nationally organized scheme to recycle virtually all of these items.
Consumption and use of electrical and electronic products can be examined in a variety of ways but the usual initial approach is to first segment the market into the business and household sectors.
This has the added advantage in that the purchasing, financing and disposal processes of the two sectors are different, especially in the case of computer equipment. The business sector often obtains their equipment by leasing. The equipment is then returned to the manufacturer and often has a 'second life'; in either a household or is exported to another market, typically South East Asia or the Pacific. Households usually purchase their new or second hand computer equipment outright.
Households
In September 2005 a study funded by the Federal and State Governments was published called the 'Household Electrical & Electronic Waste Survey'; that set out to quantify the amount of electrical and electronic equipment held by households in working order, in use or in storage. The survey only covered 62% of households, as it did not include Hobart, Darwin or rural and regional Australia.
In summary it estimated that there are around 92.5 million items representing an average of 22 items per household, which included TV's, Videos, DVD's, Computer monitors & box units, laptops and a miscellaneous range of computer equipment and cordless appliances.
Volumes of Major Equipment Types
| Equipment Type |
Number (Millions) |
Average Number/Household |
| TV's |
9.74 |
2.3 |
| Videos/DVD's |
9.08 |
2.2 |
| Radios |
8.27 |
2.0 |
| PC Monitors |
4.29 |
1.0 |
| PC Units/Hard Drives |
4.18 |
1.0 |
| Laptops |
1.24 |
0.3 |
The study also noted that the percentage of households acquiring items is greater than the percentage of households disposing of them. This study confirmed that the volume of electronic waste held by households is rapidly growing.
In terms of disposal, the most common method was to give items to family or friends followed by council pick up/collection services and/or disposal via the local tip or council depot. Smaller items were typically placed in garbage bins.
Disposal methods
| Disposal method |
TV's |
PC Monitors |
Box Units |
| Gave away to family or friends |
26% |
31% |
35% |
| Council pick-up collection service |
26% |
22% |
19% |
| Took to local tip/council depot |
17% |
10% |
12% |
| Sold privately to another person |
5% |
5% |
6% |
| Gave to repair shop/PC mechanic/second hand dealer |
4% |
2% |
2% |
| Took to charity shops/collection bins |
3% |
7% |
8% |
| Used as a trade-in |
2% |
3% |
4% |
| Wheelie bin/normal garbage bin |
1% |
2% |
3% |
| Total items disposed of [millions] |
4.35 |
2.03 |
1.66 |
Note the disposal method have been ranked by the number of 'top mentions'; and expressed as a percentage.
Businesses
Large businesses and Government Departments typically enter into contracts with a computer supplier, which involves a number of aspects including networking, maintenance and financing. These agreements frequently include the replacement of equipment at the end of an agreed period by the computer supplier who will also be responsible for the disposal of the old equipment. Thus a computer initially used by a large organization may go through a series of different hands before being scrapped. The boundaries between businesses and households become blurred especially where smaller businesses are operated from the home with members of the household also accessing the equipment for their personal use.
One organisation has endeavoured to understand the market by viewing it as a series of stages or life cycles, through which the computer passes as follows:
Series of stages or life cycles
| First Stage [new computer] |
| Households |
17% |
| Schools & Universities |
14% |
| Small/Medium Businesses |
28% |
| Governments |
16% |
| Large Businesses |
25% |
| In its second 'life'; the computer changes ownership |
| Second Stage |
| Households |
50% |
| Schools & Universities |
11% |
| Small/Medium Businesses |
17% |
| Storage or dumped |
22% |
| In its third ownership stage the following changes could occur. |
| Third Stage |
| Storage |
50% |
| Recycled |
4% |
| Landfill |
46% |
| The last stage is the disposal of the computer. |
| Fourth Stage |
| Recycled |
8% |
| Landfill |
92% |
There is anecdotal evidence that the reuse of older computers is declining as the price of new equipment continues to decline. When a second hand machine with new software could cost from say $300 to $500 why not purchase a new machine, with a guarantee, for under a $1,000?
Microsoft has a programme that enables software for 'Windows 98 and 2000'; to be purchased for a small administration charge provided the computer with the new software is sold to a non-profit organization or to a person who is in receipt of a Centrelink allowance.
Branded and Unbranded Products
The Australian Information Industry Association [AIIA] estimates that approximately 50% of all computers currently sold in Australia are known brands with the other 50% being made up of 'white boxes';. The term 'white boxes'; refers to the computers assembled by the estimated 2,500 to 3,000 computer shops around Australia that will assemble a computer box to the customer's specification. Frequently these products are 'branded'; but the buying public does generally not recognize the brand.
This is one of the distinguishing characteristics of the Australian market and compares with Europe and the USA where the 'white box'; segment hold a market share of around 25%.
However computers with known brand names and those from the 'white box'; sector both use the same suppliers for many of their key components.