The evolving landscape of mobile trade-ins in the United States has seen substantial growth, underscored by a recent study from Assurant. In the first quarter of 2025, US consumers engaged in mobile trade-in and upgrade programs, leading to a notable influx of $1.24 billion. This figure represents a remarkable 40% increase from the same period in the previous year, illustrating the rising importance of these programs in the tech industry.
Growth Factors in Mobile Trade-Ins
The surge in mobile trade-ins can be attributed to multiple factors, most prominently the growing consumer interest in artificial intelligence (AI) and 5G technology. As consumers increasingly prioritize these innovations when considering device upgrades, the trend is reflected in the types of devices being traded in. Notably, 5G-capable smartphones emerged as the most traded-in devices during the latter half of 2024, setting a new precedent for the secondary market.
According to Assurant’s report, the mobile trade-in and upgrade landscape is maturing, becoming a critical component of the secondary device market. This market not only benefits consumers but also various stakeholders in the smartphone ecosystem, including manufacturers and retailers. The study highlights key themes driving this growth, such as increased promotional offers that incentivize trade-ins, leading many consumers to upgrade their devices sooner rather than later.
Consumer Trends and Device Lifecycle
Interestingly, while the devices being traded in leaned towards newer models, the average age of devices turned in reached a record high of 3.82 years. This statistic suggests that consumers are holding onto their devices for longer periods before upgrading, even as promotional activity surrounds newer models. The rise in trade-in programs further indicates that economic uncertainties are motivating consumers to explore these options to secure better deals.
The report reveals specific insights about popular devices in the trade-in market. For the third consecutive quarter, the iPhone 13 emerged as the most frequently traded-in device, while the Samsung Galaxy S22 Ultra 5G was the leading Android device. This represents a shift from previous trends, demonstrating how the iPhone 12, the first 5G-compatible Apple phone launched in 2020, has steered many consumers towards newer technology.
Of particular note is the fact that 85% of the top five traded-in devices in this quarter were 5G-enabled, reflecting a shift in consumer preference towards higher-performance devices. The average age of an iPhone at trade-in was recorded at 3.79 years, slightly younger than Android devices which averaged at 3.93 years. Such statistics signal that while some consumers are trading in older models, many still find value in their current devices, potentially delaying the upgrade process.
The Sustainability Factor
Beyond economic considerations, the environmental impact of mobile device upgrades has become a pressing concern. The increase in higher-end pre-owned smartphones entering the secondary market not only allows consumers access to premium devices at lower prices but also plays a crucial role in reducing electronic waste. This trend promotes sustainable practices within the tech industry, contributing positively to the environment.
Biju Nair, president of global connected living and international at Assurant, remarked on the trajectory of this change: “Through 2024, the adoption of new, highly capable AI devices caused an uptick in trade-in and upgrade programs. At the start of this year, amid economic uncertainty, affordability is now also playing more of a role in purchase decisions.”
As the secondary device market continues to grow, Assurant anticipates that the value and flexibility of trade-in programs will support this momentum. Nair noted, “We anticipate continued momentum in the secondary device market as these programs deliver value, help consumers access the latest technology at a lower cost, and support sustainable practices.” This statement emphasizes the dual benefit for consumers seeking affordable technology while promoting environmental responsibility.
Market Reaction and Future Outlook
The increasing popularity of mobile trade-in and upgrade programs has prompted a variety of responses in the tech industry. Retailers and manufacturers are likely to adapt their strategies to engage consumers, offering more lucrative promotions and marketing campaigns centered around trade-ins. This adaptability will be essential as competition intensifies in the mobile market.
Consumers are expected to be influenced by economic conditions as well as technological advancements. As AI and 5G capabilities become more integrated into everyday devices, it’s conceivable that we will see even older devices traded in as users seek to benefit from newer innovations.
The evolution of mobile device trade-ins serves as an insightful snapshot of consumer behavior in the tech landscape. With the steady rise of promotions and the growing significance of sustainability, the future of mobile trade-ins appears to be both promising and impactful.
Quick Reference Table
| Metric | Value |
|---|---|
| Trade-in Value Q1 2025 | $1.24 billion |
| Year-over-Year Growth | 40% |
| Average Device Age | 3.82 years |
| Most Traded-in Device | iPhone 13 |
| Leading Android Device | Samsung Galaxy S22 Ultra 5G |
| % of 5G Devices in Top Five | 85% |