The trade-in market for mobile phones has rapidly evolved from a secondary concern into a key strategic lever. In response to shifting economic dynamics, growing consumer interest in refurbished devices, and looming regulatory changes, major players are stepping up their game, according to Stuart Blackhurst’s Finsur. Recently SecondaryMarket.news revealed that Samsung, Recommerce, Dipli and Likewize are the latest to make high impact moves, as forward buy back initiatives, all aiming to improve trade-in engagement, increase market share and extend consumer lifecycle management.
Samsung’s 50% offer makes headlines
Samsung’s new Galaxy Club in the UK, offering a 50% guaranteed trade-in value after 12-15 months, marks a bold strategic shift. It’s a direct response to the faster depreciation of Samsung devices compared to Apple iPhones and a tactical move to win over early upgraders. By zeroing in on a time window where Samsung already outperforms Apple (66.7% vs. 40.0% trade-in rates in the 1–2-year range), the initiative targets maximum conversion with minimal residual risk.
Recommerce and Likewize join the action
Following Samsung’s announcement, Recommerce launched its forward trade-in programme, allowing customers to lock in future buyback values at the time of purchase. This was swiftly followed by Likewize promoting its B2B trade-in capabilities in Germany. These moves signal an arms race in securing inventory and customer loyalty through guaranteed trade-in schemes.
Insurance and risk management will be key
Offering future value guarantees is not without risk. Players like Kingfisher and Assurant’s Hyla have shown that specialist expertise is required. To scale such models, Dipli with their forward trade-in, rely on insurance-backed guarantees and their historic data.
UK survey reveals key behaviours
A Finsur survey of 500 UK consumers revealed that 44% of Apple iPhone users and 40% of Samsung users already trade in their devices. Carriers like O2 outperform with a 34.8% trade-in rate, while Three lags behind at just 6.7%. Surprisingly, retailers like John Lewis show a strong 30.8% trade-in rate, highlighting a premium retail advantage in driving circular behaviour.
Age matters: newer phones get traded
The survey showed a sharp decline in trade-ins as devices age. Samsung dominates trade-ins within 1–2 years, while Apple leads in the 3–5+ year window. Samsung’s 12–15-month trade-in guarantee is thus perfectly timed to maximise participation before depreciation reduces value and consumer responsiveness.
Online channels fall short on trade-ins
Amazon’s trade-in rate of just 2.3% highlights a key weakness in online channels. Physical retailers and carriers with in-person sales support tend to outperform, suggesting that the trade-in decision is still heavily influenced by personal interaction and advice.
Big opportunities in the middle market
Phones aged 2–3 years represent 30.1% of the consumer base but see limited trade-in activity. This “missing middle” offers a clear opportunity for programmes designed to capture residual value before further depreciation.
Consumer education still lacking
Nearly 30% of consumers who had the option to trade in chose not to. Many cited uncertainties around device condition or trade-in eligibility. Better education and clearer communication could unlock significant value in this untapped group.
Refurb buyers aren’t circular yet
Only 10.3% of refurbished device buyers trade in their old phones, even though many had the option. This highlights a gap in creating fully circular consumers who both buy and sell within the refurbished ecosystem.
The stakes are growing for OEMs
For manufacturers like Samsung, trade-ins are not just about retrieving old devices but securing the next sale. As replacement cycles lengthen and consumer expectations shift, trade-in programmes offer a critical touchpoint for brand loyalty and lifecycle value.
The competitive landscape is heating up
The next few months are likely to bring more bold moves. The trade-in market, driven by economic pressure and regulatory tailwinds, has become a battleground where success will depend on balancing consumer incentives, operational efficiency, and financial sustainability.
Via: Finsur
Market
Trade-in
Repair
Refurbishing
