HYLA Mobile, the world’s leading provider of software technology and services for mobile device returns management and reuse solutions, today announces findings from its Q3 2019 trade-in trends report. The report reveals that over $637 million ($637,649,694) was returned to US consumers in Q3 via trade-in programs—an increase of nearly 40% from the previous quarter.
Each quarter, HYLA uses data from its own analytics solution and combines this with live market data to reveal the latest trends for the North American mobile devices market. Key findings from HYLA’s Q3 trade-in trends report includes:
o iPhones accounted for 8 of the top 10 devices traded-in in Q3 of this year. The top traded device was the iPhone 7, followed by the iPhone 6s, iPhone 7 Plus, iPhone 6, iPhone 8 Plus, iPhone 6s Plus, iPhone 8, Galaxy S7, iPhone X and Galaxy S8.
o While the average age of an iPhone at trade-in was 3.14 years, the iPhone 8 Plus is quickly making its way up the ranks and was the fifth most popular device traded-in in Q3. The iPhone 8 Plus was released in September 2017—showing that some consumers are departing with their devices after two years.
o The average age of an Android smartphone at trade-in was under the three-year mark, at 2.79 years.
o The iPhone XS Max received the highest trade-in value at $523.18. The Galaxy Note10+ 5G followed with a trade-in value of $500.
o Device trade-in values were higher all round in Q3. The average trade-in value for a smartphone in Q3 was $99.07, up from $94.78 in Q2; the average trade-in value for an Android device was $68.01, up $6 from last quarter ($62.25 in Q2); and the average trade-in value for an iPhone was $164.08, up from $163.46 in Q2.
“Q3 is typically a big quarter for trade-ins. With major OEMs holding their annual launch events, we often see consumers turn to trade-in programs to upgrade to the brand-new devices that come to market,” said Biju Nair, President and CEO of HYLA Mobile. “But while each quarter we are seeing trade-ins grow, consumers aren’t always getting the maximum value for their devices. By trading in devices earlier—as we are starting to see with the iPhone 8 and 8 Plus—consumers can get more money for their old devices, which can be used to off-set the price of a new device, making it much more affordable. By trading in a 12-18 month-old device while upgrading to the iPhone 11, consumers cut their upgrade cost by 50% while getting a superior device. There’s also huge potential for an operator, OEM or retailer to take this relatively new device and give it a second life—and realize additional revenue.”
According to analyst firm CCS Insights, shipments of 5G devices have gotten off to a slower start than expected, but the company sees a growth trajectory from 2020 and beyond. History has shown that with each introduction of a new ‘G’, the smartphone market sees significant boosts in device sales.
“As consumers’ awareness and understanding of 5G grows, we are likely to see demand for 5G devices rise. But 5G devices will not come cheap, either. Trade-ins are becoming a critical component in the consumers decision making process and being able to use these programs to offset costs will be even more important over the next months as more 5G devices come to market.”
“Ultimately, operators, retailers and OEMs can benefit from educating consumers on the benefits of regular device trade-ins programs and make them aware of the value their devices hold. If customers truly understood the value of their devices, I believe we could break the three-year hold cycle sooner, rather than later,” added Nair.
HYLA’s Q3 2019 trade-in trends infographic is available for download here: