US mobile users keep devices longer than ever

By the end of the second quarter of 2024, the average age of a mobile device turned in from trade-in or upgrade programmes has reached an all-time high of 3.7 years, according to Assurant’s latest quarterly analysis of the smartphone returns market.

Yet while the Assurant mobile trade-in and upgrade industry trends report for Q2 2024 showed the increasing value of trade-in and upgrade programmes for both consumers and wireless providers, there were signs that in the Samsung market at least, there were increases in trade-in activity, with the likelihood of similar dynamics with new Apple devices.

In all, the report found the average trade-in value per device increasing nearly 28% quarter-over-quarter from $110.87 to $141.02, and that consumers received an estimated $829m of value by trading in their devices in the second quarter.

The average trade-in value for consumers rose markedly compared with the first quarter of 2024, with Android devices seeing a notable 37% increase and Apple devices experiencing a 20% rise.

The average age of iPhones at turn-in increased from 3.6 years in Q1 2024 to 3.8 years in Q2 2024, while the average age of Android devices at turn-in decreased from 3.7 in the first quarter to 3.5 years in the second quarter.

As has been the case for a number of years, Apple devices were the most traded-in and the number one device turned in from trade-in and upgrade programmes, and the only 4G model was the iPhone 11, accounting for 31% of the top five models.

In the previous two quarters, variations of the iPhone 12 – Apple’s first 5G-compatible device – made up almost half of the top five devices turned in via trade-in and upgrade programmes, amounting to 39% and 42%.

In the Samsung arena, for the fifth consecutive quarter, the number one Android device turned in from trade-in and upgrade programmes was the Galaxy S21.

Q2 revealed that the volume of Samsung Galaxy S21 from trade-in and upgrade programmes increased 20% in the first half of 2024, compared with the first half of 2023. There could be potentially important dynamics at play for this, suggested Biju Nair, executive vice-president and president of global connected living and international at Assurant.

“The notable year-over-year increase in the volume of Samsung’s Galaxy S21 turned in from trade-in and upgrade programmes in the first half of the year was potentially driven by Samsung’s new product launch in January,” he said.

“During that launch, Samsung introduced Galaxy AI, one of the first and most impactful consumer-facing AI innovations seen in mobile devices since the advent of voice assistants. This suggests that while consumers are holding onto their phones longer than ever, those who are trading in may be motivated by innovative, user-centric capabilities, powered by AI [artificial intelligence].”

Rebekah Griffiths, vice-president of product management and strategy at Assurant, added: “Given the strong consumer interest in AI capabilities, we anticipate a super-cycle of upgrades when Apple launches their new devices that will support an embedded Apple Intelligence expected later this year.”