Gartner Research

Apple's iPhone Upgrade Program Impacts the Market for Secondhand Phones

Published: 29 April 2016

ID: G00300535

Analyst(s): Meike Escherich, Annette Zimmermann

Summary

Apple's Upgrade Program to engage in the secondhand smartphone market puts pressure on CSPs and device vendors specifically in the U.S. and Europe. Strategic planners in device vendors need to decide how to counter this engagement with their own upgrade program to induce customer loyalty.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • In Apple's effort to take control of its own devices, CSPs and retailers will experience the impact of Apple's iPhone Upgrade Program
  • In an environment where vendors see the main opportunity in selling more devices by enticing faster replacements, some device vendors such as Samsung and Huawei will be forced to take ownership of their secondhand devices
  • Apple's launch of its "Trade Up" program will impact some smaller and weaker brands in the market, in particular device vendors such as Wiko and Coolpad, as they have fewer resources available to respond effectively

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