In its annual report, Assurant found that the average age of returned devices dropped in tandem with the release of the first AI-enabled phones. | Stock Rocket/Shutterstock
With nearly one-third of U.S. consumers expecting to own a phone compatible with artificial intelligence by mid-2025, users could start upgrading phones at a faster pace, according to the most recent industry trend report from insurance and extended warranty provider Assurant.
Even so, the average age of Android devices and iPhones in 2024 rose from the previous year, Assurant said in its latest Mobile Trade-In and Upgrade Industry Trends Report.
For the year, U.S. consumers kept devices longer than in previous years regardless of platform, with the average age coming in at 3.64 years compared to 3.46 in 2023 and 3.39 in 2022.
But in the quarters during which Samsung and Apple released their latest phones, the average age dropped for each operating system.
- Android: 3.67 years (Q1) to 3.38 (Q3)
- iPhone: 3.78 years (Q2) to 3.63 (Q4)
The tangible age drop precisely when AI-enabled devices launched could indicate that early adopters were turning in newer 5G devices to upgrade to the emerging technology, the report said.
As further support, the report cited data showing that nearly half of U.S. consumers expect their next smartphone to support artificial intelligence, and 20% consider AI a “very important” factor in their purchase decision. In addition, almost 11% of consumers reported a recent upgrade and about 16% planned to upgrade within the next six months.
“At the beginning of 2024, consumers prioritized getting the most out of their existing devices, but with major advancements in AI, and trends we are seeing in terms of device age towards the end of the year, that may be shifting,” said Biju Nair, president of Global Connected Living and International at Assurant, in a press release. “Though it is still too early to tell, as AI starts to deliver meaningful capabilities and more devices become available, we may see more consumers trading-in their newer 5G smartphones to take advantage of emerging AI-enabled capabilities.”
Newer trade-ins result in higher average values
In the Apple universe, iPhone 11 was the most-returned device for the year, but the iPhone 13 was the most turned-in during second-half 2024, as the newest version launched, the report said. And the top 5 devices overall were all iPhones.
For the Android operating system, the Galaxy S21 was the most commonly turned-in device, for the second year in a row. However, the Galaxy S22 Ultra 5G became the most returned device in the second half of the year, as the Galaxy 24 was released, in line with the drop in average device age around that time.
As a result of the newer devices being turned in, the value of trade-ins increased by 5% on the year, to a total of $4.5 billion. Two years ago the total was $3.8 billion. In 2024, Androids had an average trade-in value of $75 in the U.S. and $60 in Brazil, Chile and Mexico, while iPhones were at $157 and $217, respectively.
Assurant analyzed data from its Device IQ platform as well as broader industry insights for the report.