$874 Million Returned to U.S. Consumers Through Mobile Trade-In Programs in Q1 2024

Rhea-AI Summary

Assurant (NYSE:AIZ) reported that mobile trade-in programs returned $874 million to U.S. consumers in Q1 2024, according to their latest Mobile Trade-In and Upgrade Industry Trends Report. The average age of devices at trade-in reached an all-time high of 3.64 years. iPhone 12 models dominated recent trade-ins, with the iPhone 11 being the top device turned in for the eighth consecutive quarter. Overall, the average trade-in value of smartphones decreased from $147 in Q4 2023 to $110 in Q1 2024. Additionally, the average trade-in value for the latest Apple Watch, Ultra 2, was $317. Assurant noted that while trade-ins typically dip after peak shopping seasons, they remain vital for encouraging device upgrades and reducing electronic waste.

Positive

• Assurant returned $874 million to U.S. consumers in Q1 2024 through mobile trade-in programs.
• The average age of devices at trade-in reached an all-time high of 3.64 years, indicating longer device retention.
• iPhone 11 remained the top turned-in device for the eighth consecutive quarter.
• Average trade-in value for the latest Apple Watch, Ultra 2, was $317.

Negative

• Average trade-in value of smartphones decreased from $147 in Q4 2023 to $110 in Q1 2024.
• Inflation is contributing to rising costs, which may affect consumer purchasing power.

Insights

Market Research Analyst

Assurant's report on mobile trade-in programs provides an insightful look into consumer behavior and financial implications within the tech industry. The data suggests that U.S. consumers received $874 million from mobile trade-ins in Q1 2024. This indicates robust engagement in trade-in programs, likely driven by economic factors such as inflation, which encourages consumers to seek value from older devices.

The demographic shift towards holding onto devices longer, with an average trade-in age of 3.64 years, signals a more cautious consumer base. From a market perspective, this trend could imply a longer replacement cycle for devices, which might affect OEM (Original Equipment Manufacturer) sales cycles and inventory management. Apple's dominance in the trade-in market is apparent, with iPhone models representing a significant portion of traded devices. The presence of the iPhone 11 and 12 in the top five lists highlights Apple's strong market position and consumer loyalty.

For retailers and operators, these trade-in programs are important for driving upgrades and maintaining consumer engagement. However, the decline in average trade-in values from $147 to $110 could impact consumer perceptions of these programs' value. It is essential to watch how this decline might influence future upgrade decisions.

Financial Analyst

The report highlights a substantial monetary inflow of $874 million to consumers from trade-ins in Q1 2024. This reflects the strategic significance of such programs for Assurant and similar companies in driving customer engagement and satisfaction. It is noteworthy that despite a seasonal dip following Q4's peak shopping season, the trade-in programs still generated significant returns for consumers.

From a financial perspective, the average trade-in value's decline from $147 in Q4 2023 to $110 in Q1 2024 is crucial. This might indicate a downward trend in the perceived value of older devices or aggressive depreciation models. For investors, it's vital to monitor how these trends balance with Assurant's revenue from trade-in activities and impact its bottom line.

The consistent return of devices like the iPhone 11 and newer models showcases a stable upgrade cycle, which can be seen as a positive indicator for revenue continuity. The high trade-in value for the Apple Watch Ultra 2 at $317 also suggests a strong secondary market for high-end wearable technology, which could diversify Assurant's income streams.

Consumers holding onto devices for longer than before with average age at trade-in hitting an all-time high

ATLANTA--(BUSINESS WIRE)-- Assurant (NYSE:AIZ), a leading global business services company that supports, protects and connects major consumer purchases, today revealed that mobile trade-in programs put an estimated $874 million into U.S. consumers’ pockets in Q1 2024.

The latest quarterly Mobile Trade-In and Upgrade Industry Trends Report shows that the average age of devices at the point of trade-in is at an all-time high at 3.64 years. Variations of the iPhone 12 made up almost half of the top five devices turned in via trade-in and upgrade programs for the last two quarters (39% and 42% retrospectively). Having launched in October 2020, consumers upgrading these devices to newer models is seemingly contributing to the average age of devices.

Using market data, alongside its Device IQ analytics platform, the Assurant Mobile Trade-In and Upgrade Industry Trends report outlines the top smartphones returned through trade-in and upgrade programs, the average trade-in value of smartphones, and trade-in trends for Apple Watches.

Key findings from the Q1 2024 report include:

• Despite being launched in 2019, the iPhone 11 remains the top turned in mobile device through trade-in and upgrade programs for the eighth quarter in a row and is the only 4G device of the top five.
• The remaining top five devices, all 5G, are the iPhone 12, iPhone 12 Pro Max, iPhone 13, and iPhone 13 Max.
• The Samsung Galaxy S21 remained the top turned in Samsung device.
• Consumers are holding on to their devices longer than before, where the average age of device at turn in was 3.64 years, compared to 3.45 years in Q4 2023.
• Overall, the average trade-in value of smartphones has decreased in the last three months, falling from $147 in Q4 2023 down to $110 in Q1 2024.
• Average trade-in value on the latest Apple smart watch, Ultra 2, reached $317 in the first quarter.

“After a record high of money returned to consumers in Q4 of last year, it’s typical for Q1 to see a dip in trade-ins following the peak shopping season,” said Rebekah Griffiths, vice president, Product – Device Lifecycle Solutions at Assurant. “With inflation contributing to rising cost of living globally, trade-in is an important tool for OEMs, operators, retailers, and MSOs to encourage consumers to upgrade their devices and take advantage of newer network capabilities. It also reduces the number of devices being stashed away in drawers or, worse, ending up in landfills.”

The Assurant Q1 2024 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/20240530945196/en/

Media:

Lou Masses

Director, Connected Living Communications

louis.masses@assurant.com

Source: Assurant, Inc.

FAQ

How much money did Assurant return to U.S. consumers through mobile trade-in programs in Q1 2024?

Assurant returned $874 million to U.S. consumers through mobile trade-in programs in Q1 2024.

What was the average age of devices at trade-in in Q1 2024 according to Assurant?

The average age of devices at trade-in reached an all-time high of 3.64 years in Q1 2024.

Which device was the top turned-in mobile device for the eighth quarter in a row?

The iPhone 11 was the top turned-in mobile device for the eighth consecutive quarter.

What was the average trade-in value of smartphones in Q1 2024?

The average trade-in value of smartphones in Q1 2024 was $110.

How much was the average trade-in value for the Apple Watch Ultra 2 in Q1 2024?

The average trade-in value for the Apple Watch Ultra 2 was $317 in Q1 2024.

Which iPhone models made up almost half of the top five devices turned in via trade-in programs for the last two quarters?

Variations of the iPhone 12 made up almost half of the top five devices turned in via trade-in programs for the last two quarters.

Why are trade-ins considered important according to Assurant?

Trade-ins encourage consumers to upgrade their devices, take advantage of newer network capabilities, and reduce electronic waste.