The Hidden Costs of Locked Devices in IT Asset Disposition
If you are disposing of your old IT equipment, or preparing for the Windows 10 end of life deadline, locked devices can create multiple unexpected challenges during their end of life process.
Devices protected by Activation Lock, Google Factory Reset Protection (FRP), BIOS passwords or Mobile Device Management (MDM) profiles often delay processing, reduce resale value, increase environmental impact and introduce compliance risks. Without the right preparation, organisations risk missing out on full asset recovery potential and undermining sustainability targets.
What is a Locked Device?
Locked devices are laptops, smartphones or tablets that retain active security features when returned for ITAD. Common examples include:
- Google Factory Reset Protection (FRP) on Android devices
- Activation Lock on Apple devices
- BIOS or EI passwords on laptops
- Mobile Device Management (MDM) profiles controlling corporate devices
These locks must be removed before collection to ensure secure, efficient processing.
How Do Locked Devices Impact ITAD?
Operational Delays
Locked devices disrupt ITAD workflows. Units must be quarantined, their status investigated, and clients contacted for resolution. ADISA reported that Activation Lock created major processing bottlenecks in the ITAD sector as early as 2014.
Common operational impacts include:
- Delayed processing
- Increased storage costs
- Higher labour overheads
Financial Losses
Devices that remain locked lose nearly all market resale value. Refurbishers have dismantled MacBooks worth over £2,400 because Activation Lock could not be removed†.
In one facility, one in four iPhones received were locked and had to be scrapped rather than reused†.
Additional financial consequences include:
- Increased recycling costs
- Ongoing licence fees for MDM-enrolled devices
- Lease penalties for non-compliant returns
Environmental Impact
Locked devices prevent reuse, forcing unnecessary recycling. Research shows that extending device life avoids up to 275 times more carbon emissions compared to recycling.
Millions of devices globally are scrapped each year due to software locks that were never removed†.
Compliance & Security Risks
If a device is locked or encrypted and inaccessible, ITAD providers must physically destroy it to ensure data security.
Without proper unlock procedures, organisations risk:
- Incomplete data erasure documentation
- Devices remaining visible in corporate systems
- Violations of GDPR requirements for secure disposal
Manufacturers confirm that physical destruction is necessary where data cannot be accessed securely.
Recycling Locked Devices is Not a Solution
Destroying hardware does not deactivate Activation Lock, Google FRP, or MDM profiles.
Without removing locks at source, organisations may face:
- Ongoing licence costs linked to destroyed assets
- Compliance risks during audits
- Reputation damage if devices are traced back to the company
Manufacturers such as Apple do not offer unlock support for third parties▵.
Simply recycling locked devices leaves hidden costs and risks unresolved.
How to Prevent Locked Device Issues
Preventing locked devices from reaching ITAD is critical.
Organisations should:
- Integrate unlocking steps into employee offboarding
- Remove devices from MDM and cloud enrolment systems
- Keep records of serial numbers and lock statuses
- Provide unlock credentials securely to ITAD partners when required
- Train IT teams and employees on the operational, financial and compliance risks linked to device locks
Embedding these controls early protects value, ensures compliance, and supports sustainability targets.
Get the Most from Your ITAD Programme
At Vyta, we work with organisations to maximise the security, value and sustainability of every IT asset disposal.
By ensuring devices are properly unlocked before collection, you protect data, avoid hidden costs, and contribute towards genuine environmental progress.
Contact Vyta today to find out how we can help your business achieve secure, compliant and sustainable ITAD outcomes.
† Public Interest Research Group, 2024
▵ Apple, 2023
