As mentioned in my Reuse and Recycling blog from last month, the used mobile phone is garnering a lot more attention these days. Customers, as they upgrade, continue to have more options when it comes to the disposal of their old devices. Wireless carriers have launched new buyback programs and seek to better explain to consumers (and businesses) how to extract worth from their wireless devices. Recommerce vendors like Gazelle continue to gain traction when a new Apple device launches.
In a recent survey, Compass Intelligence asked mobile phone users a series of questions about their wireless preferences and usage behaviors. When asked about upgrading their wireless phones, 33% of the respondents said they were motivated by contract expiration and associated promotions, while 26% of the survey takers did state that they upgrade in order to have the newest device in the marketplace.
UPGRADE MOTIVATORS and USED MOBILE PHONE DISPOSAL
Source: Compass Intelligence, 2012
When asked about what happens to their old wireless phones, customers continue to prefer to keep their old mobile phones as a backup (there is also a preference to give to a family member). End users also say they would opt to recycle their old mobile phones with the carrier or donate to charity. A smaller set of customers will sell a device back to the wireless carrier, despite efforts to improve visibility to such programs. Customers are less apt to sell the old devices online whether it is with a recommerce vendor or with a do-it-yourself website like eBay or Craigslist.
As the wireless carriers continue to understand how to better leverage the economic benefits of the used mobile phone, it might be advantageous for them to explore offers around refurbished phones (e.g., family plans). For instance, the carrier could add a used device (e.g., feature phone or smartphone) without an activation fee or an additional MRC.
Related Research:
- Reuse and Recycling: An introduction to the shifts in attitude around mobile phone use
- Reuse and Recycling: Idle Mobile Device Forecast, 2010-2015
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Please visit Compass Intelligence to learn more: http://www.compassintelligence.com/ and visit ourThought Leaders Research Page to learn more about The Pulse of the Thought Leaders Panel-
Kate Pearce is a Research Strategist and Sr. Consultant at Compass Intelligence. She can be reached at kpearce@compassintelligence.com