HOBI weekly blog recap 6/19-6/23
HYLA Mobile, a mobile device reverse logistics company, recently released a study regarding mobile device trade-ins from Q1 2017. The study shows device trade-ins are continuing to increase with the introduction of leasing models instead of traditional two-year contracts.
HYLA estimates more than one-fourth, or 26 percent, of mobile users remain on a two-year contract, and the remaining users, or 74 percent, have switched to an equipment installment plan (EIP). EIPs allow users to upgrade devices more frequently and encourages upgrades in sync with new device launches.
The four devices most frequently traded in were each iPhones. HYLA attributes this to the Q4 2016 release of the iPhone 7 and 7 Plus. During Q1 2017, iPhone 6 devices comprised 34.8 of trade-ins, iPhone 5S devices accounted for 14.1 percent, iPhone 6 Plus devices accounted for 11.9 percent and iPhone 5 devices comprised 3.8 percent of trade-ins.
The iPhone 7 and 7 Plus ranked the highest in trade-in value during Q1 2017, valuing $331.84 and $390.11 respectively, followed by the Google Pixel XL, valued $282.40. HYLA indicates the average trade-in value for an Apple iphone is $139.00, while the average Android smartphone is valued $60.82.
EIPs create more flexibility for users who wish to try new devices without purchasing the device up-front. As more carriers introduce EIPs and users choose to adopt these plans, mobile trade-ins will continue to increase with new device launches.
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