The world’s first cell phone – or then, mostly called mobile phone – was made on April 3, 1973 by a senior engineer at Motorola. For those who don’t remember what cell phones used to be, they were large handheld devices, that while portable, were anything but compact. Since that initial design and development, we have seen phones become smaller, more portable, and include more features (such as games, better access to the internet, nicer cameras, etc.), it’s hard to imagine what could come next. Knowing that today a lot of hype is surrounding the development of foldable phones, it really seems like they have come up with just about everything.
With the constant change of technology, consumers are always looking to get the latest and greatest in their hands. But this of course comes with a higher price tag with each new feature included. Luckily, today’s consumers can upgrade their devices more efficiently and easily and, with this, the industry is seeing news trends with each new advancement in tech.
Online Trade-Ins are Becoming the Norm
The internet has allowed for the easiest shopping experience to date. Because of that, retailers are opting for an omni-channel approach to the mobile trade-in process.
While brick-and-mortar retail locations may provide better customer service and a more personalized experience, e-commerce allows consumers to manage their transactions faster and from the comfort of their own home, or on the go.
Hootsuite and We are Social release its Q4 Global Digital Statshot report and found that there are almost 2 billion internet users around the world and more than 1 billion people using a mobile phone. And according to Statista, mobile e-commerce sales could make up over 70 percent of total e-commerce sales by 2021.
Additionally, a Harvard Business Review study revealed that 73 percent of consumers use multiple channels during their shopping journey, which increases retail spending in-store by four percent and retail spending online by 10 percent. As omni-channel shopping changes the future of retail, 56 percent of store locations will become hubs for omni-channel fulfillment by next year.
Allowing for this kind of flexibility for your customers gives them the peace of mind they need when deciding how to trade in and upgrade their tech.
The Wearable Market is Trending Up
Another once futuristic product, turned necessity of tech lovers – wearables. It was once wondered if smart watches would take off and now, according to Gartner, worldwide shipments of such devices will reach 225 million this year – an increase of over 25% from last year.
The market has seen a distinct difference in wearables from cell phones, though. Wearables were not a product we saw being traded in until about Q4 of 2018. Apple released its first generation Watch in 2015 and when the second generation was released in 2017, a lot of people weren’t running to get it – unless they didn’t already have one.
Now on its fifth generation, just announced at this month’s annual event, it will be interesting to see how trade-ins and additional sales will spike.
The Extended Lifecycle of a Smartphone
As mentioned earlier, with each new release of a new device it seems that the price tag sees an increase. It’s likely because of this, that consumers are hanging on to their devices for a little longer than normal. Not to mention, major carriers are no longer offering plans that allow for customers to upgrade to a new device every two years.
Buying a new phone can mean shelling out up $2,000 upfront or being put on a monthly payment plan that ultimately increases your monthly bill. This has many consumers second guessing if they really need that new phone or not.
But reversely, a newer phone will have a higher trade-in value when compared to a dated phone – something to consider when thinking of future tech purchases.
With new innovations being released each year, and even more frequently, the market is sure to continue to evolve and see new trends in how the trade-in market performs.