Will the Arrival of 5G Boost Mobile Device Trade-Ins?
By providing faster download and upload speeds, lower latency connections, and increased network capacity, 5G is the next generation of mobile broadband that will transform technology and enhance the user experience. Though 5G will not necessarily replace 4G, it will complement LTE and enable more reliable connections on smartphones and other mobile devices than ever before. Consumers have been anticipating the release of 5G ever since NASA’s Ames Research Center and Machine-to-Machine Intelligence (M2Mi) Corp partnered to develop 5G communications technology in 2008.
Earlier this year, Verizon released five devices that supported 5G in select U.S. cities including Samsung’s Galaxy S10 5G, LG’s V50 ThinQ 5G, Motorola’s Z3 or Z4 with the 5G Moto Mod, and Inseego’s MiFi M1000. Most recently, Apple analyst Ming-Chi Kuo predicted that five iPhones are expected to launch in 2020, with four of the higher-end models featuring support for 5G. It’s safe to say that the 5G-enabled iPhones are already in high-demand – Apple plans to ship 80 million or more new 5G iPhones in 2020, Nikkei Asian Review reported.
A recent study by Piper Jaffray found that many Apple customers decided not to purchase the iPhone 11 because they are holding out for the upcoming 5G models. Out of 1,050 current iPhone owners surveyed, Piper Jaffray found that 23% would upgrade to a $1,200 5G iPhone. Analysts at IDC believe smartphone shipments worldwide will increase by 1.5 percent to 1.4 billion this year, with 5G smartphones totaling 190 million.
While there is a ton of excitement surrounding 5G smartphones, the total cost of ownership will certainly be higher than usual. Here at Phobio, we expect the arrival of 5G to boost device trade-ins as consumers look for ways to reduce the overall purchase price. Retailers and mobile carriers can offset premium price tags and incentivize consumers to spend more in-store and online by offering a flexible and user-friendly device trade-in solution.
The Phobio platform enables the buyback of smartphones, tablets, computers, wearables, or any other pre-owned technology in exchange for payment and/or recycling. With a simple two-condition grading benchmark that classifies devices as either working or damaged, the Phobio platform provides the most competitive and transparent device pricing in the industry. On average, Phobio processes more than one million devices per year.
As an omni-channel platform, Phobio ensures a seamless trade-in process online or in-store. This versatility is business critical as customers are more likely to start their trade-in through one channel and finish it through another. The Phobio platform gives customers the flexibility to back up their music, photos, and contacts conveniently at home and then drop off their device in-store or schedule a pick-up.
To provide a seamless trade-in experience, the Phobio platform easily integrates with existing POS systems, online brand buy-flows, portal experiences, and operational partners. Best of all, the Phobio platform enables retailers to turn device trade-in data into actionable insights by providing industry-leading reporting and analytics tools.
With our AI-powered SaaS platform, Phobio Abacus, retailers can access and analyze the market trends, historical performance, and future values of any device or group of devices at any time through a web interface. The Phobio Abacus machine learning platform generates trade and sale value predictions in real-time for devices based on historical depreciation rates and those of comparable products.
The ability to predict future device values such as 5G smartphones enables retailers, carriers, and insurance providers to mitigate risk as they offer new programs to drive customer acquisition and sustain customer retention.
Interested in learning more about our device buyback solution? Contact us!