57 percent of global consumers expect to upgrade to a 5G device in the next 24 months, according to a recent report by Blancco Technology.
Of these, almost half (49 percent) intend to trade in their old device as part of the process. The report demonstrates an opportunity for operators, retailers and OEMs to drive device trade-ins outside traditional retail store walls if consumers can receive the assurances they need.
Following a turbulent year of decreased smartphone sales, industry analysts expect the broader availability of 5G and strong global consumer intent to upgrade to cause a resurgence in smartphone demand. With purchase activity shifting to digital platforms due to pandemic-restricted store operations, the study aimed to explore whether this change in consumer behavior had also influenced preferences around device trade-ins.
According to the study, while 69 percent of consumers have never engaged with an online trade-in process, consumers are open to the idea. Forty-one percent said they would be willing to use an online trade-in process in the future, and a further 31 percent said they would consider it. However, assurances will be necessary to increase engagement. The findings demonstrate that online device trade-ins can grow if consumer confidence is improved through greater transparency and appropriate data management. Thirty-one percent of consumers said they are concerned about potential data misuse when they trade in a device online and 27 percent do not trust an invisible, unassisted process.
The report concludes that the responsibility is on organizations involved in online device collection to provide visibility into every stage of device processing. At the same time, these organizations must mirror the in-store experience digitally and implement best practice data management to protect against personal data lingering on the device. The report also found that providing consumers a user experience built on assurances in data protection, holistic device care, and sustainable e-waste policies will be essential in driving demand for online trade-ins.
Russ Ernst, EVP, Products and Technology, Blancco
The shift in shopping habits, along with the impending 5G smartphone super cycle, is creating a key inflection point for operators, retailers and OEMs to capitalize on their chance to put 5G devices in subscribers’ hands. Trade-ins will continue to play a key role in incentivizing consumers to upgrade by subsidizing the costs of new devices, and there is a significant opportunity at play for organizations involved in the collection of used devices to drive revenue through online device trade-ins.
