The Apple iPhone release cycle remains a driver of the domestic device trade-in market, but Hyla Mobile sees growing opportunities in emerging markets.
On this week’s “Carrier Wrap,” we speak with Hyla Mobile on the device trade-in market, what it sees in terms of trends as we move through 2017, and how it views the flow through of used devices into emerging markets.
The market for used and refurbished devices has gained significant momentum over the past several years driven by high-end smartphone updates basically moving to a yearly cycle and wireless operators transitioning consumers away from device subsidies and towards monthly payment options.
This has resulted in consumers gaining more insight into the real value of their smartphones, which has more cost-sensitive consumers stretching out new device ownership towards the two-year payment schedule, or looking at the potential for a refurbished device should they need a new smartphone prior to the old one being paid off.
Texas-based Hyla Mobile notes it works with the domestic market’s four nationwide operators as well as some international carriers as they transition used devices out of circulation to either re-enter as a refurbished device to be sold at a discount, be used as a replacement device for an insurance claim or moved to emerging markets where new consumers lack the financial resources to purchase a new high-end device.
CEO Biju Nair discussed trends the firm is seeing in terms of those various scenarios, as well as dipped into the company’s data to discuss what he sees in the device trade-in market moving into 2017.
Hyla recently noted U.S. consumers received $710 million in compensation from trading in mobile devices during the fourth quarter of last year, with the previous 12 months witnessing $2 billion in returned compensation. During the most recent holiday season, Hyla found Apple’s iPhone 6 model was the most traded in device, with the more than 273,000 units turned back in about equal to the four next most popular traded in devices. Those four, by the way, included the Apple iPhone 6 Plus, iPhone 5s, iPhone 6s and Samsung Galaxy S5.
Thanks for watching this week’s show, and make sure to check out our next “Carrier Wrap” when we are scheduled to speak with Sprint to get an update on the carrier’s LTE and 5G plans.
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