For the fifth quarter in a row, there has been an uptick in the trade-in value of smartphones. On average, smartphones were traded in for £97 during the second quarter, a rise of £6.50 from the preceding quarter. Notably, iPhones have seen a particularly pronounced increase, reaching an all-time high trade-in value of £155, up from £144 in the first three months of the year. Meanwhile, Apple Watches have also performed impressively, with an average trade-in value of £150 during the same period.
An interesting trend emerges when considering the age of these traded devices: people are retaining their smartphones for longer durations before trading them in. This is especially true for Android devices; data shows that the average age of traded devices has risen to 3.56 years, a 6% increase. iPhones traded in had an average age of 3.55 years (a 4% increase), while Android devices were slightly older at 3.58 years, marking a 10% rise.
When breaking down the most commonly traded devices, iPhones dominated the list: iPhone 11, iPhone 12, iPhone XR, iPhone 12 Pro Max, and iPhone 11 Pro Max. On the Android front, the most traded model during the second quarter was the Samsung Galaxy S21. This represents a significant change, as the Galaxy S9 was the most traded Android phone the previous year.
Highlighting another shift in the market, an increasing number of 5G devices are being traded in. Devices capable of 5G constituted 34% of the top trade-in devices, a rise from 29% in the initial quarter. Regarding the bigger picture, approximately £629 million was returned to consumers in the UK through trade-in and upgrade schemes during the second quarter. This figure is almost consistent with the first quarter, which saw a return of £624 million.
Due to economic challenges impacting the mobile device sector, there has been a decline in new smartphone shipments, leading to a decrease in pre-owned smartphone inventory. Concurrently, an increasing number of consumers are showing interest in refurbished smartphones for affordability or as an environmentally friendly alternative. This rising demand means businesses are actively looking for ways to boost their used device stock. As a result, trade-in values consistently grew for five consecutive quarters.
The secondary market is flourishing, and trade-ins and upgrades are set to play a pivotal role in helping the industry navigate economic challenges. This approach not only encourages sales but also promotes customer loyalty and revenue generation and extends the lifespan of pre-owned devices.
