A new study from Assurant shows that in 2024, artificial intelligence (AI) is really becoming a big factor for people when they think about upgrading their devices in 2025. Interestingly, 5G smartphones emerged as the top devices people traded in during the second half of 2024.
Assurant’s 2024 mobile trade-in and upgrade trends report pulls together insights from its Device IQ analytics platform and other industry data. It reveals that U.S. consumers who traded in their devices received around $4.5 billion in value from trade-in programs. That’s a 5% jump from 2023.
During the year, consumers generally held onto their devices longer than before. On average, turned-in devices were more than 3.6 years old. Specifically, after Samsung launched its Galaxy 24, the average age of turned-in Android devices decreased from 3.67 years to 3.38 years by the third quarter. Similarly, iPhones dropped from an average age of 3.78 years in the second quarter to 3.63 years by the fourth quarter, likely influenced by the iPhone 16 release.
Analysts suggest that this trend might be about “early adopters” swapping in their 5G devices for the latest AI-driven models. Across the year, trade-ins shifted noticeably. The iPhone 11 was the most turned in at first but was surpassed by the iPhone 13 in the latter half. As for Androids, the Samsung Galaxy S21 continued to be the most traded-in model, but the Galaxy S22 Ultra 5G became the top choice in the second half of the year.
Biju Nair from Assurant highlights that almost half of U.S. consumers now expect their next smartphone to support AI features. About 20% see AI as a key part of their buying decision. With nearly 11% of consumers reporting an upgrade recently and around 16% planning to upgrade soon, it seems likely that by mid-2024, about a third of U.S. consumers could own AI-enabled devices.
The research suggests that the decline in the average age of both Apple and Android devices in trade-in programs aligns with rising demand for the newest AI-enabled options, hinting that this could speed up how often people upgrade. “At the start of 2024, many focused on maximizing their current devices. But with major AI advancements, we may notice a shift in behavior by year-end,” said Nair. He added that as AI brings more valuable capabilities to the table, more consumers might trade in their newer 5G smartphones for these cutting-edge AI devices.