Assurant, an insurance coverage firm accomplice of Apple in its trade-in program, expects a slight improve in quantity after the tech large’s “Far Out” occasion on Wednesday.
EXCLUSIVE: Assurant, an insurance coverage firm that has partnered with Apple as a part of its trade-in program, expects greater quantity after the tech large’s “Far Out” occasion on Wednesday, the place the corporate is anticipated to announce the iPhone 14.
| Teleprinter | Safety | Final | To alter | To alter % |
|---|---|---|---|---|
| AAPL | APPLE INC. | 154.53 | -1.28 | -0.82% |
| AIZ | ASSURANT INC. | 158.66 | -0.24 | -0.15% |
Final yr, the chance administration supplier recovered roughly 20 million trade-in gadgets throughout its three amenities in York, Pennsylvania; Lewisville, Texas and Nashville, Tennessee, together with a document 17 million repaired for resale.
“This yr, we anticipate, will probably be about the identical ballpark, perhaps barely north of there,” Biju Nair, president of Assurant’s linked residing international unit, advised FOX Enterprise in an interview. . “As quickly because the launch of the brand new iPhone takes place, we’ll begin to get a greater thought of what This fall volumes will seem like.”
Nair notes that trade-in volumes usually triple from the launch date of a brand new iPhone or Samsung cellphone because of the reputation of the gadgets and the beginning of improve promotions by carriers and retailers. Within the first quarter of 2022 alone, about $784 million was returned to shoppers via industry-wide take-back applications.
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When a trade-in gadget reaches an Assurant facility, it’s examined for situation and rated. About 65% to 68% of gadgets acquired by Assurant are from Apple, whereas about 25% to 30% are from Samsung.
About 65% to 68% of gadgets acquired by Assurant are from Apple, whereas about 25% to 30% are from Samsung. (Picture courtesy of Assurant)
After testing and repairs are accomplished, gadget knowledge is erased and auctioned off to patrons within the wholesale market. About half of the gadgets ready for resale are consumed in the US, whereas the opposite half is shipped overseas.
In keeping with Nair, the typical promoting worth of a used smartphone on the wholesale market is round $210.
In 2021, Assurant took again roughly 20 million trade-in gadgets and repaired 17 million for resale. (Picture courtesy of Assurant) (Assuring)
“The wholesaler buys [the phone] after which they do many, many issues, however they’ll break it up into smaller tons and promote it to different small shops that is perhaps considering promoting it extra. They clearly get a margin on prime of that. So for example, , they get about 5% further margin,” Nair explains. “However these finish shops, they’ll really polish and polish these gadgets and put them in a field, add a charger and headphones then they resell it at retail worth.”
Nair notes {that a} used iPhone 13 usually sells north of round $500.
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Since starting its take-back program in 2009, Assurant has reused 116 million gadgets, diverted greater than 23,000 metric tons of waste from landfills, produced 6.38 million metric tons of C02 avoidance and returned roughly $12 billion {dollars} to shoppers.
Apple’s “Far Out” occasion will air reside from Apple Park in Cupertino, Calif., starting at 10 a.m. PT.
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