This is the fifth consecutive quarter that smartphone trade-in values have risen, Assurant says
The trade-in value of smartphones continues to rise, according to the most recent quarterly tracking from device insurance and support company Assurant. The average trade-in value was $135 during the second quarter, up $9 from the first quarter. Trade-in values are even higher for iPhones—which hit their highest-ever recorded value of $215, from $200 in the first quarter of this year. Apple Watches aren’t far behind their smartphone counterparts, with an average trade-in value of $208 during the second quarter.
Even as the value of trading in a smartphone increases, the average age of a trade-in device is also creeping upwards because users are keeping their smartphones longer, particularly if they are Android devices. Assurant reported that the average age of all devices traded in was 3.56 years, up 6%. The age of trade-in iPhones increased 4% to 3.55 years, and Android devices’ average age was up 10% to 3.58 years. The devices most commonly traded in were all iPhones: iPhone 11, iPhone 12, iPhone Xr, iPhone 12 Pro Max and iPhone 11 Pro Max.
On the Android side, Assurant said that the most traded device in the second quarter was the Samsung Galaxy S21—a big shift, since the Galaxy S9 held that distinction all throughout last year.
As those phone models indicate, more 5G devices are filtering through to the trade-in market. 5G-capable devices made up 34% of the top trade-in devices, up from 29% in the first quarter of the year.
Overall, Assurant said that $872 million was returned to U.S. consumers through trade-in and upgrade programs in the second quarter of this year—a figure roughly flat from the first quarter, which came is at $865 million.
“With the economic challenges affecting the mobile device market, new smartphone shipments have declined resulting in a decrease of pre-owned smartphone inventory. Simultaneously, many consumers are now taking more interest in purchasing refurbished smartphones—whether that’s to make devices more affordable, or as a greener alternative to buying new,” said Biju Nair, EVP and president of global connected living and international at Assurant. “As demand for these devices rises, carriers, retailers, cable operators, and OEMs will be looking for ways to increase their used device inventories—and as such, we are seeing this reflected in the trade-in value. In fact, this is the fifth consecutive quarter where the trade-in values have risen. The secondary market continues to thrive, and trade-ins and upgrades will continue to be critical as these industry players overcome the macroeconomic hurdles they face, as a way to encourage sales, maintain customer loyalty, drive revenue and extend the life of pre-owned devices.”
Online trade-ins are a small but growing part of the market, accounting for 16% of total trade-ins in the second quarter, which is up 15% year-over-year.
Additional details from Assurant available here.
