US smartphone consumers hold on to phones longer. Will US consumers have 5G in their pockets?
U.S. consumers received over $479 million from trading in smartphones in Q1 2018, an increase of $35 million over Q1 2017, reports HYLA Mobile, a company that sells software and services for mobile phone reuse.
At the same time, U.S. consumers are holding onto their phones for longer. “Despite initiatives like Apple’s iPhone Upgrade Program, which allows consumers to get the latest iteration every year, the average age of used devices is on the rise,” wrote HYLA’s Sanida Bratt in a blog entry.
The average age of an iPhone in use, for example, now averages 2.76 years, HYLA reported, compared with 2.52 years old same quarter last year.
It is too early to tell whether this is a sign that consumers won’t want to spend money on 5G phone upgrades. The mobile phone market still grows, and Apple, for example, is predicted to regain some mojo. Analysis firm Gartner expects that worldwide, “Apple smartphone sales [will] grow by more than the market average in 2018, with the launch of new models fueling stronger replacement cycles,” said Roberta Cozza, research director at Gartner.
Mobile phone shipments in general will increase by 2.6% in 2018 to 1.9 billion units worldwide. Smartphone sales will grow by 6.2%, to represent 87% of mobile phone sales. The question remains if phone users will want to buy LTE Advanced/Advanced Pro or 5G-compatible phones just to get the faster speeds.
By 2021, 9% of smartphones sold will support 5G, analysis firm Gartner forecasts.
5G phones will reach the market in 2019, when rollouts of 5G networks will start. “Overall, 5G will be a significant driver of video and streaming services, as it will bring faster uplinks and support new AI applications,” said Cozza.
