Last week, Apple introduced its iPhone 16 series, the first smartphones equipped with the new Apple Intelligence features. With AI-powered capabilities available in all four models, the launch marks a milestone in the evolution of smartphones. Yet, the big question on everyone’s mind is whether these new features will prompt consumers to upgrade their devices amid lengthening replacement cycles.
Trade-in offers fuel competition
CCS Insight looked for us into different US trade-in options. As the demand for smartphone replacements softens, major US carriers — AT&T, T-Mobile, and Verizon — are fiercely competing to attract customers. In a bid to capture attention, they are offering substantial trade-in deals on older iPhones, particularly for those trading up to the new iPhone 16 Pro series. The offers are remarkable, with some carriers providing up to $1,000 in credit for iPhones as old as the iPhone 12. We are already knew that Apple was offering special trade-in deals for Apple iPhone 12 users.
AT&T, T-Mobile, and Verizon are enticing customers by offering the iPhone 16 Pro “on us,” though with conditions. To access these deals, customers must trade in their current phone and commit to a premium, long-term contract with their carrier. AT&T requires a 36-month contract with unlimited voice and data plans, while T-Mobile and Verizon offer similar terms with high-value plans. The large credit serves as an incentive to lock customers into these contracts, boosting carrier revenues in the long term.
Impacts on the secondary market
The influx of trade-ins is expected to have a significant knock-on effect on the, what CCS Insights calls, organized secondary mobile market. Devices like the Apple iPhone 12 will become more readily available, benefiting regions such as Europe, which depend on US traded-in used devices.
However, consumers (and businesses) should be aware that trade-in values from carriers might not always offer the best return. According to SellCell, Apple iPhone users may get up to 70% less from carriers compared to third-party trade-in services, particularly for devices in good condition. But also, for example, SellCell offers $ 650 for a non-working iPhone 15 Pro Max, while Apple offers $0.
Used market poised to benefit
As competition intensifies, the supply of used Apple iPhones could boost the global market. European consumers, who rely on the availability of used smartphones, stand to benefit from the surplus trade-ins driven by US demand. However, Europe is also faced with challenges. Officially US Apple models, which do not have CE-label, are not allowed to be imported into EU. And what about marginal VAT, that is not available for US devices, and eSIM-only Apple iPhones?
Source: CCS Insight & SellCell
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