Mobile devices have skyrocketed in popularity within the last decade, and AI may be increasing the device trade-in rate. With new models released annually, many people trade in their old devices every year or two. Rising prices and more rapid deployments of technology have caused many consumers to keep their devices longer; however, recent data shows that upgrade timing is being shaped by a mixture of mobile provider promotions and emerging interest in on-device AI, which could cause a decline in device reuse.
Insurance and extended warranty provider, Assurant, conducts a quarterly “Mobile Trade-In and Upgrade Industry Trends” report, and recently discovered that trade-in values are increasing. According to the report, trade-in and upgrade programs returned $1.34 billion to consumers, up 8 percent from Q1 and 60 percent on the year. The average age of smartphones at turn-in has increased in recent years as consumers wait longer to upgrade, resulting in many OEMs advertising more aggressive trade-in offers to compete with the secondary market. However, growing AI capabilities may be shifting the tide.
“Historically, the second quarter has been a quieter period for trade-ins and upgrades, although this year we are seeing strong market resilience,” Biju Nair, president of Global Connected Living and International at Assurant, said in a statement. “Consumers are trading in older devices for new smartphones with functional AI capabilities. Initially, many took a ‘wait and see’ approach to AI, but as it evolves from a feature to a more personalized capability tailored to the everyday needs of consumers, we anticipate device age to decline as more consumers see the value of upgrading to these new generations of devices.”
Environmental Benefits of Device Reuse
Although the idea of upgrading to AI is appealing to many, especially in business, holding onto devices longer is a key factor in reducing global e-waste. The rapid deployment of technology has created an excessive amount of global e-waste, and reusing old devices helps reduce the demand for new devices to be manufactured. Even passing down older devices or donating them helps keep used assets in circulation and out of the waste stream.
ITAD providers like HOBI collect used IT assets and maximize value with services such as repair, refurbishment, and asset redeployment. Technology is becoming too expensive for frequent upgrades, and while keeping IT equipment up to date is essential, throwing away retired assets that are still functional wastes enterprise resources. Having a disposition plan by partnering with an ITAD provider eliminates the issue and ensures assets are disposed of responsibly.
HOBI International, Inc. is an R2v3, NAID, RIOS, WBE, and ISO 14001 certified IT asset management and disposition enterprise with more than 30 years of experience in the industry. Our mobile asset management services maximize the value of used equipment, protect data after asset retirement, and support a circular economy.
For more information about our ITAD services, call 817-814-2620 or contact HOBI at sales@hobi.com.