One New Zealand says old phones unlock NZD $10.6 million

One New Zealand says customers traded in old phones worth an average of $478 this year, unlocking more than $10.6 million in trade-in value by the end of September.

The mobile operator's data shows 69% of traded devices were valued at more than $250, even though the average handset handed in was about 3.7 years old.

The highest-value phone traded through the company this year was a Samsung Galaxy Z Fold 8 Ultra 512GB, valued at $1,931. The most commonly traded device was the iPhone 13 128GB, with 932 units traded in so far this year.

Across the wider iPhone 13 range, that figure rose to 1,090 devices. The numbers suggest many customers can still recover a meaningful sum from phones that are several years old.

Trade-in value

One New Zealand says the figures highlight how much money may be sitting in unused or ageing devices, at a time when many consumers are weighing the cost of replacing handsets.

It also argues trade-in should be considered alongside Phone Dollars, a scheme under which eligible customers can build up credit towards a new interest-free phone.

Sam Bruce, General Manager of Retail at One New Zealand, said the way people assess the cost of changing phones is shifting.

"Trade-in has been around for a long time, and our data shows it can unlock significant value - the average device traded through One NZ this year has been worth $478.

"But trade-in is only one source of value. What's different now is that customers can combine what their old phone is worth with Phone Dollars they've already accumulated.

"We don't think people should look at the price of their next phone through the lens of trade-in alone. The more useful question is: how much value do I already have to put towards my next phone?" Bruce said.

The data challenges a common assumption in the handset market that older smartphones have little resale or exchange value. Most devices handed in this year were still valued at more than $250, despite being several years old on average.

That may matter for customers who keep retired handsets at home rather than selling or trading them. It also points to another source of purchasing power for consumers looking to reduce the upfront cost of a replacement device.

Consumer focus

Bruce said customers often focus on the advertised retail price of a new handset without considering what they already hold in trade-in value or account-based credits.

"People naturally focus on the sticker price of a new phone, but there can be value on the other side of that purchase that is easy to overlook.

"Your current phone may still be worth hundreds of dollars. You may also have Phone Dollars available. Looking at those things together gives you a much better understanding of the value you can bring to your next phone," Bruce said.

One New Zealand says this combination may change how some customers approach handset upgrades. Rather than viewing trade-in as the only offset against a new purchase, customers can assess both the market value of their old device and any credit they have accumulated through their mobile account.

The figures also offer a snapshot of device turnover among New Zealand mobile users. The prominence of the iPhone 13 in the trade-in data suggests many customers are replacing handsets that are no longer new but still recent enough to retain substantial value.

Foldable premium phones also feature at the top end of valuations, as shown by the Samsung device that received the highest trade-in price. That reflects their higher original retail prices and the residual value they can hold in the second-hand market.

For mobile operators, trade-in schemes can help keep customers within their handset sales channels while lowering the perceived cost of upgrading. For customers, the figures indicate that older devices may still contribute meaningfully to a new purchase.

"Trade-in? That's the obvious place to start," Bruce said. "But it's no longer the whole story."