According to point-of-sale data from GfK, the average sales price for smartphones increased by 11 percent year-on-year in the last quarter of 2017. While the majority of smartphones are becoming more expensive, it’s the iPhone X and the Galaxy Note 8 in particular that are driving the average price increase. The Galaxy Note 8 is priced at $930 while the iPhone X has been appropriately dubbed the “$1,000 iPhone” by consumers.

In fact, these price tags are so steep that they seem to be scaring customers away and driving them to purchase older, less expensive models instead. For example, sales for the iPhone 8, iPhone 8 Plus, and iPhone 7 have remained steady and the respective production targets of 30 million units have not waivered. Unfortunately, sales for the new iPhone X have not been as strong as Apple’s other devices – most likely due to the expensive cost of ownership. The Wall Street Journal recently reported that Apple reduced its production target for the iPhone X for the first quarter due to weak demand. Apple now projects it will build 20 million iPhone X units, half of their previous goal. Other sources say Apple is cutting orders for iPhone X’s components by a whopping 60 percent.

With the cost of smartphones on the rise, it’s easy to understand why consumers are holding onto their devices longer and why they are so apprehensive to upgrade to newer models. Luckily, it’s now easier than ever for consumers to decrease the cost of a new smartphone by trading-in their older devices. Even the value of damaged smartphones has significantly increased, making trade-in programs attractive to a broader range of consumers.

Here at Phobio, our mission is to provide consumers with the most spending power – empowering them to upgrade their devices with confidence. According to reports from our device buyback program, SafeTrade, the average trade-in value over the last five years for working grade devices increased nearly 60 percent from 2012 to 2017, putting up to $100 back into customers’ wallets. The average trade-in value for damaged grade devices increased nearly 80 percent in the same period, providing up to $70.

SafeTrade provides the most competitive, transparent device pricing in the industry. Even customers who are looking to upgrade to newer models such as the iPhone X can benefit. While the iPhone X is currently priced between $999-$1149, the working trade-in value for a two-year old phone (iPhone 6S/6S+) is currently about $180 through SafeTrade.

As a channel-agnostic trade-in experience, SafeTrade allows customers to upgrade in-store, online, or even begin a trade-in one channel and complete it in another. If you’re thinking about upgrading your device, contact us to see how we can put money back into your wallet and decrease the total cost of your new smartphone!