Sumitomo Corporation and Bolttech Form Strategic Partnership to Enhance Device Lifecycle Management
Sumitomo Corporation has entered into a strategic partnership with Bolttech Holdings Limited, a Singapore-headquartered global insurtech company operating in 37 markets worldwide. As the first initiative under this partnership, they plan to establish a joint venture in the first half of fiscal 2025 and launch a new service in Southeast Asia. This service will combine bolttech’s customer base with Sumitomo Corporation’s expertise in device resale to offer services such as installment-based device sales and upgrade programs to new models.
Growing Demand for Smartphone Subscriptions and Insurance
Globally, rising smartphone prices and increasing adoption in emerging markets have led to growing demand for smartphone subscriptions, insurance coverage, and used device sales. In regions like South and Southeast Asia, where younger demographics dominate, demand for affordable, high-performance used smartphones is particularly strong. The device insurance market is expected to grow faster than the global average, driven by increasing smartphone usage, urbanization, digitalization, and improved access to insurance services through the rise of insurtech and e-commerce.
Leveraging Expertise for Device Distribution
Sumitomo Corporation has approximately 30 years of experience in the telecommunications sector. In Japan, they have developed businesses in mobile phone retail, value-added services such as device protection, and device distribution – including the resale of used devices. Internationally, the company has operated mobile communications services in countries such as Mongolia and Ethiopia. By leveraging this experience and combining it with bolttech’s customer base and distribution capabilities, Sumitomo Corporation aims to support the entire value chain of smartphone distribution, from device protection services to resale.
Leadership Comments
Shinichi Kato, CEO, Media & Digital Group, Sumitomo Corporation, stated, “We are thrilled to join forces with bolttech – both as a strategic investor and through our joint venture. We are confident that this partnership will enable us to leverage our combined expertise and resources to deliver industry-leading device lifecycle management services, driving growth and innovation across the Asia region.”
Rob Schimek, Group CEO, bolttech, added, “We are delighted to welcome Sumitomo Corporation as our strategic partner. We are confident that Sumitomo Corporation’s expertise in devices and vast network, combined with our distribution capabilities, will drive us forward in creating a better protection experience for consumers in Asia.”
The joint venture plans to expand its device distribution operations across Asia, aiming to provide services to approximately 10 million customers by 2030. This partnership contributes to the spread of a circular business model, including the resale of used devices, while promoting efficient use of resources and reducing environmental burden, ultimately supporting the expansion of sustainable digital infrastructure.
