For more information on the Reuse and Recycling market or our primary research in this area, please contact Kate Pearce at [email protected]
In a recent survey, our parent company, Compass Intelligence, asked mobile phone users about their devices' trade-in value. We wanted to find out how customers perceive the value of their devices if they were to sell them back. Nearly 40% believe that their basic or feature phones are worth $5-$25, while another 32% of the customers think their phones would only fetch $5 or less. Only 9% of the respondents expect to receive more than $75 for a feature phone. However, smartphones users have higher expectations with 27% of the 452 polled thinking that they would get between $100-$200 for their devices. Also, nearly 40% of the mobile users say that their devices would be worth $75 or less if they sold them back or traded them in. As customers continue to migrate to smartphones (and shell out more money for mobile devices), understanding the resale value will become a greater focus for end users as well as recycling vendors. Perhaps this market will require a standardized "blue book" type of resource for customers to rely on when considering where to trade-in so as to get the best value. Here at Bamboo Mobile we plan to continue to gauge device pricing with our Device Value Index and other deliverables in development.
For more information on the Reuse and Recycling market or our primary research in this area, please contact Kate Pearce at [email protected]
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As the industry continues to evaluate and monitor the mobile device lifecycle (especially with the major device launches-Samsung Galaxy III and Apple iPhone 5-over the last few months), we want to try to shed some light on mobile phone recycling, particularly in regards to end user awareness and participation. For instance, do people really know about the buyback and trade-in options or basic phone recycling programs and are they using them? Survey information we've gathered indicates that end users are increasingly more aware of the programs offered by wireless carriers, retailers, device makers and others. In fact, research completed by our parent company, Compass Intelligence, shows a 17 point increase in awareness since the first of this year when asked about trade-in programs. Source: Compass Intelligence. Note: Arrows denote statistical significance. Now where it gets interesting is when we ask about whether they have actually recycled or sold back a used device. For instance, at the beginning of 2012, we asked end users whether they participated in a buyback or recycling program in the last six months, and 28% said they had traded-in at least one device. Fast forward to our latest preliminary numbers which show only 19% stated they had done so in the last six months. Source: Compass Intelligence. Note: Statistical significance found when comparing Column A to B & C only. A likely reason for the decrease in behavior may be attributed to the end-of-year holiday season which traditionally is a popular time for device upgrades and purchases. Sample size is also a factor. These things could skew the numbers a bit higher and the actual participation rate remains even at around 20%.
So if over 60% of end users state they know the programs exist, then why are only 20% of end users participating? Some survey participants said they were not offered rewards or incentives to trade-in or recycle, while others planned to keep their old devices as a data backup or in case something happened to their new phones. In a nut shell, program awareness is growing but participation remains steady. Carriers and others are doing a better job of communicating and marketing their programs, now they just need to make the “sale.” Obviously, that’s the difficult part – they need to find the right combination of enticements (offers) and encouragement (the ”eco-friendly” story) for customers to make it second nature to turn over those gently-used and end of life mobile devices to either 1) extend the life of the device or 2) to ensure they are recycled to prevent harm to the environment. Kate Pearce is a Research Strategist and Sr. Consultant at Compass Intelligence where she participates in custom consulting projects and develops content for the device reuse and recycling subscriptions and other device-related research. |
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