A recent study conducted by Assurant has revealed significant insights into consumer behavior in the secondary device market for 2024, indicating that artificial intelligence (AI) is likely to influence purchasing decisions more strongly as consumers prepare to upgrade their devices in 2025. Notably, 5G-capable smartphones were the most frequently turned in during the latter half of 2024.
Consumer Trade-In Trends
As highlighted in Assurant’s 2024 mobile trade-in and upgrade industry trends report, based on data from its Device IQ analytics platform, the value received by US consumers from trade-in programs reached $4.5 billion, marking a 5% increase from 2023. The report showed that the average age of devices turned in exceeded 3.6 years during the first quarter of 2024, indicating that users were holding onto their devices longer.
Device Age Dynamics
Following the launch of Samsung’s Galaxy 24, the average age of turned-in Android devices dropped from 3.67 years to 3.38 years by the third quarter. Similarly, Apple’s iPhones showed a decline in average age from 3.78 years in the second quarter to 3.63 years in the fourth quarter, coinciding with the release of the iPhone 16. This reduction suggests that early adopters may be trading in older 5G models for the latest AI-enhanced smartphones.
Top Turned-In Devices
The study identified significant shifts in the devices being turned in. Although the iPhone 11 was the most commonly turned-in model for the year, the iPhone 13 took the lead in the second half. The Samsung Galaxy S21 retained its position as the most turned-in Android device, but the Galaxy S22 Ultra 5G emerged as the second most traded-in Android model in the latter half of 2024.
Consumer Expectations for AI
Assurant’s research indicated that nearly 50% of US consumers anticipate their next smartphone will feature AI capabilities, with approximately 20% considering AI as a crucial factor in their buying decision. As of early 2024, about 11% of US consumers had recently upgraded their devices, and around 16% planned to do so in the next six months, suggesting that a third of US consumers could own AI-enabled devices by mid-2024.
Future Projections
Combining findings from Assurant’s “connected decade” research with the decreasing average age of traded-in devices indicates a potential acceleration in the upgrade cycle for AI-enabled smartphones. According to Biju Nair, Assurant’s president of global connected living and international, as advancements in AI technology become more pronounced, consumers may increasingly choose to trade in their newer 5G devices to access the latest AI features.
This evolving landscape suggests that 2024 could mark a pivotal year for smartphone upgrades driven by emerging AI capabilities and consumer preferences.