With 5G a catalyst for driving smartphone upgrades over the previous yr, the newest smartphone tracker from Assurant has discovered that the market confirmed solely small increases in value in the course of the second quarter of 2023.
Assurant’s newest quarterly Cell trade-in and improve business developments report outlines the highest smartphones turned in in the course of the quarter, the typical age of gadgets at trade-in, in addition to knowledge on on-line trade-ins and wearable trade-ins.
The topline findings of the report revealed a complete of $872m was returned to US shoppers by means of trade-in and improve programmes within the second quarter of 2023, not very completely different to the primary quarter’s $865m. It additionally revealed that the typical trade-in value of smartphones reached $135 in the course of the second quarter of this yr, up from $126 within the first quarter of 2023.
Drilling deeper, the report discovered that the highest 5 traded gadgets have been the iPhone 11, iPhone 12, iPhone XR, iPhone 12 Professional Max and iPhone 11 Professional Max, with 5G-capable gadgets making up 34% of the record, an increase from 29% within the earlier quarter. iPhones reached their highest recorded value of $215 in the course of the second quarter of 2023.
Assurant’s knowledge highlights the continued rise in value of pre-owned gadgets. Within the first quarter of this yr, it reported that the typical trade-in value of iPhones surpassed the $200-mark for the primary time because the third quarter of 2021. Additionally surpassing the $200-mark for trade-ins was the Apple Watch Extremely, which had a median trade-in value of $208 for the second quarter.
On the planet of Samsung, the research revealed that, for the primary time, the Galaxy S21 was essentially the most traded gadget, unseating the Galaxy S9 which held that place all through 2022.
The common age of gadgets at trade-in continues to rise, with the typical age of all traded gadgets growing by 6% to three.56 years. The common age of iPhones elevated by 4% to three.55 years, whereas Android gadgets elevated by 10% to three.58 years.
On-line trade-ins accounted for 16% of complete trade-ins for the quarter, seeing a 15% year-on-year enhance from the second quarter of 2022.
“With financial challenges affecting the cell gadget market, new smartphone shipments have declined, leading to a lower of pre-owned smartphone stock. Concurrently, many shoppers are actually taking extra curiosity in buying refurbished smartphones – whether or not that’s to make gadgets extra reasonably priced, or as a greener different to purchasing new,” mentioned Biju Nair, president of worldwide related residing and worldwide at Assurant.
“As demand for these gadgets rises, carriers, retailers, cable operators and OEMs might be trying for methods to extend their used gadget inventories – and as such, we’re seeing this mirrored within the trade-in value. In reality, that is the fifth consecutive quarter the place the trade-in values have risen,” Nair added.
“The secondary market continues to thrive, and trade-ins and upgrades will proceed to be crucial as these business gamers overcome the macroeconomic hurdles they face, as a strategy to encourage gross sales, preserve buyer loyalty, drive income and prolong the lifetime of pre-owned gadgets.”