Record High $4.3 Billion Returned to U.S. Consumers Through Mobile Trade-In Programs in 2023
- Assurant (NYSE:AIZ) returned a record $1.6 billion to U.S. consumers in Q4 2023 through mobile device trade-in programs.
- $4.3 billion was returned to U.S. consumers in 2023, marking a 13% increase over 2022.
- The iPhone 11 remained the top device traded in, with iPhone 12 models also popular choices.
- The Samsung Galaxy S21 was the top Android device traded in during 2023.
- Online trades in 2023 increased by 10% compared to 2022.
- Trade-in values for iPhones reached a record high in Q4 2023, with 5G-enabled devices dominating the top five trades.
- Assurant's report emphasizes the importance of collaboration among industry stakeholders to drive growth in the secondary device market.
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The mobile device trade-in market has demonstrated significant growth, with a 13% increase in returns to U.S. consumers in 2023 compared to the previous year. This growth indicates a robust secondary market for mobile devices and reflects a consumer trend towards cost-efficiency and environmental consciousness. The trade-in market's expansion is also indicative of the lifecycle of technology products, where a device's average age at trade-in has reached over three years, suggesting that consumers are holding onto their devices longer before upgrading.
From a market perspective, the predominance of Apple devices, specifically the iPhone 11 series, in trade-ins suggests a strong brand loyalty and a high residual value for Apple products. The increase in trade-in values, particularly for iPhones, could impact the secondary market by potentially raising the average selling price of pre-owned devices. Furthermore, the 25% increase in consumer returns during Q4 2023 likely correlates with seasonal sales events, which could be used as a predictive indicator for similar future periods.
The reported $4.3 billion returned to consumers through trade-in programs in 2023 has implications for the revenue streams of companies like Assurant that facilitate these programs. The record high of $1.6 billion in Q4 alone suggests a significant quarterly performance boost. This performance could reflect positively on Assurant's financials, potentially affecting its stock valuation.
Moreover, the data provided by Assurant's Device IQ analytics platform could be a valuable asset for investors and analysts to gauge consumer behavior trends and the health of the smartphone market. The increased online trade-in transactions point towards a digital shift in consumer engagement, which companies in the trade-in market must adapt to in order to maintain or grow their market share.
The emphasis on the growing secondary device market highlights a shift towards more sustainable consumer practices. The report suggests that consumers are becoming more eco-conscious, choosing to trade in their devices rather than dispose of them. This trend is beneficial for the environment, as it potentially reduces electronic waste and encourages the recycling of valuable materials.
For stakeholders, this shift presents both opportunities and challenges. Companies can capitalize on this trend by offering incentives for trade-ins and promoting the environmental benefits of their programs. However, they must also ensure that their supply chains and recycling processes are equipped to handle the increased volume of devices being returned, maintaining sustainability and ethical standards.
Unprecedented
These findings are part of the Assurant 2023 Mobile Trade-in and Upgrade Industry Trends Report, which has tracked continuous growth in the secondary device market. The report combines 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
Key findings from the 2023 Mobile Trade-in and Upgrade Industry Trends report include:
- The iPhone 11 was once again the top device turned in through trade-in and upgrade programs.
- Following the iPhone 11, the iPhone 12, iPhone 12 Pro Max, iPhone XR, and iPhone 12 Pro were the most popular devices turned in.
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Variations of the iPhone 12 made up more than half (
51% ) of the top five devices turned in during the year. - The Samsung Galaxy S21 was the top turned in Android device of 2023.
- The average age of devices at trade-in was 3.46 years.
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The number of trades conducted online in 2023 increased
10% year-over-year compared to 2022.
Highlights from Q4 2023 include:
-
Q4 2023 saw a total of
$1.6 billion U.S. consumers — a25% increase from Q4 2022. -
The iPhone 11 was the top device turned in through trade-in and upgrade programs, making up almost
30% of the top five devices. This was closely followed by the iPhone 12 at23% . - The iPhone 11 has been the top turned in device for the last seven consecutive quarters.
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iPhone trade-in values were the highest on record in Q4 2023, at
$218 $186 - In Q4, four of the top five turned in devices were 5G enabled.
“2023 was a record-breaking year for device trade-ins, highlighting the growing appetite for these programs for increasingly cost- and eco-conscious consumers. With holiday sales throughout Q4 and major retail events such as Black Friday driving a demand for new devices, we saw a jump in engagement with trade-in programs during this period,” said Biju Nair, President, Global Connected Living & International, Assurant. “Looking ahead, we expect to see the demand for trade-in and upgrade options continuing to grow, but this can only be made possible through the support of carriers, OEMs, retailers, and MSOs that offer attractive trade-in promotions and upgrade programs. Cross-sector collaboration is crucial to expand the secondary device market and make current smartphones more accessible and sustainable.”
The Assurant 2023 Annual Mobile Trade-in and Upgrade Industry Trends report is available for download here.
The Assurant Q4 2023 Mobile Trade-in and Upgrade Industry Trends report is available to download here.
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About Assurant
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.
Learn more at assurant.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240215525873/en/
Assurant Media Contact:
Stacie Sherer
Vice President, Corporate Communications
917.420.0980
Stacie.Sherer@assurant.com
Source: Assurant, Inc.
FAQ
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