Trade-in saw 34% year on year growth even as average device age continued to climb
NEW YORK, September 13, 2022--(BUSINESS WIRE)--Assurant (NYSE:AIZ), a leading global business services company that supports, protects and connects major consumer purchases, today revealed that consumers are continuing to hold on to their smartphones for longer, with the average age turned in through trade-in and upgrade programs crossing the 3.5 years mark for the first time. $767 million was returned to US consumers in Q2 2022 through mobile device trade-in programs which is a 34% increase from the same quarter last year, even as consumers hold on to their devices for a longer time.
These findings are part of Assurant’s quarterly Mobile Trade-in and Upgrade Industry Trends report for Q2 2022, which reveals steady growth in the secondary device market year over year. The report uses data from Assurant’s Device IQ analytics platform, as well as industry market data, to provide insights into the device trade-in and upgrade trends in North America. The report outlines the top smartphones turned in through trade-in and upgrade programs during the quarter, the average age and value of smartphones at trade-in and upgrade, along with trade-in trends for Apple watches.
Key highlights from the report are:
The average age of iPhones turned in through trade-in and upgrade programs has risen to 3.51 years, while the average age for Android models is now 3.62 years.
For the first time, the iPhone 11 was the number one turned in device, making up 35% of the top five devices received from trade-in and upgrade programs. This was closely followed by the iPhone XR which had occupied the top spot for the previous five quarters.
The Galaxy S9 remained the top Android device turned in since Q2 2020.
The average trade-in value for all devices has seen an increase, rising from $123 in Q1 2022 to $137 in Q2 2022.
Online trades also saw an increase, this past quarter, of 63% in comparison to the same quarter last year.
For wearables, the Apple Watch Series 7 continued to have the highest trade-in value at $186, this was followed by the Apple Watch Series 6 at $123.
"Global demand for pre-owned devices in the secondary market continues to grow, reflected by the rise in trade-in value," said Biju Nair, EVP & President, Global Connected Living & International at Assurant. "Though consumers are holding onto their devices for longer, we are seeing increasingly more consumers trading in their devices. Our year-over-year global mobile devices serviced volumes, which includes trade-in activity, increased 18% driven by strong promotions from carriers. Typically, we see an uptick in trade-in activity in the third and fourth quarters as a result of OEMs, wireless providers, retailers and cable operators offering enticing incentives resulting from new device launches. These offers enable providers to recoup promotion costs while extending the life of used devices, supporting sustainable practices – a win-win opportunity for the entire ecosystem."
The Assurant Q2 2022 Mobile Trade-in and Upgrade Industry Trends report is available for download here.
Assurant, Inc. (NYSE: AIZ) is a leading global business services company that supports, protects and connects major consumer purchases. A Fortune 500 company with a presence in 21 countries, Assurant supports the advancement of the connected world by partnering with the world’s leading brands to develop innovative solutions and to deliver an enhanced customer experience through mobile device solutions, extended service contracts, vehicle protection services, renters insurance, lender-placed insurance products and other specialty products.
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