HYLA Mobile, the world’s leading provider of software technology and services for mobile device trade-ins and reuse solutions, today reveals that over $627 million ($627,837,030) was returned to US consumers in Q3 of 2018 thanks to mobile device trade-ins. This is an increase of 51% from Q2 2018, which saw $414 million returned to US consumers from trade-ins.
Q3 is typically a strong quarter for mobile device trade-ins—last year, HYLA Mobile saw a similar $200 million increase from Q2 2017 ($384 million) to Q3 2017 ($581million). HYLA Mobile’s data therefore shows an 8% year on year increase in mobile device trade-ins.
HYLA Mobile’s Q3 2018 mobile device trade-in trends report analyzes competitive market trends along with historical performance. It offers a unique perspective on the US pre-owned device market, including which devices retain their value and how long customers are keeping their devices.
Key findings of the report reveal that:
• The iPhone 6 remained the most traded mobile device in Q3. According to HYLA Mobile’s data, the iPhone 6 has been the top traded device for nine consecutive quarters, since Q3 of 2016.
• Q3 saw Samsung re-enter the list of top five traded devices, with its Galaxy S7 taking fifth position. The iPhone 6, iPhone 6s, iPhone 7 and iPhone 7 Plus held the top four top traded device positions during last quarter. According to HYLA Mobile’s data, Apple had held all top five top traded device positions since Q3 2017.
• The iPhone X was the device with the highest average trade-in value at $484.87.
• The average value of a smartphone at trade-in during Q3 was $88.69. The average value of an Android smartphone at trade-in was $61.58, while the average value of an iPhone at trade-in during Q3 was more than double this at $146.22.
• The trend of holding on to devices for longer continued with an increase from an average age of 2.80 years in Q2, to 2.83 years in Q3. The average age of an iPhone at trade-in was 2.92 years, while Android was 2.66 years.
“Q3 is always a strong quarter for trade-ins, usually thanks to the release of the new Apple devices – and this year’s launch of the iPhone XS has certainly played a role in boosting the number of trade-ins and has helped put over $600 million back in consumers’ pockets,” said Biju Nair, President & CEO of HYLA Mobile. “Our data shows that mobile device trade-ins continue to grow, and as more operators, OEMs and retailers offer trade-in services, they are clearly important to consumers, who are using them as a tool to offset the price of increasingly expensive smartphones.”
“Carriers and retailers are no longer looking at trade-in as ‘yet another thing to sell’, rather it is being viewed as the only mechanism that incentivizes consumers to trade-up to a more expensive next generation device. Another insight from our Q3 data reveals that money returned to consumers through trade-in plays an important role in lowering the amount that needs to be financed for the new device, which in many cases helps with credit approval for those consumers,” added Nair.
The iPhone 6 continues to be the top traded device for yet another quarter. As the best-selling iPhone of all time, its top traded position can be attributed to the fact that a lot of consumers still own these devices. The popular iPhone 6 may also be having an impact on the average trade-in value of iPhones. As the trade-in value of the iPhone 6 decreases every quarter, it may be lowering the overall trade-in value of iPhones as they continue to be traded in.
Having collected more than 50 million devices since its inception nine years ago, HYLA Mobile helps mobile operators, OEMs, retailers and insurance companies retain their subscribers, increase new revenue streams, drive down costs as well as contribute to sustainability efforts. By using AI, analytics and insights as well as software and automation focused on maximizing recovery value, HYLA Mobile gives customers the solutions to operate seamless mobile trade-in programs that improve efficiency, reduce churn and drive profitability.
HYLA Mobile’s Q3 trade-in trends report is available to download here: https://contacts.hylamobile.com/mobile-trade-in-industry-trends-q3-2018