GlobalData’s latest analysis of US smartphone promotions data reveals an active landscape in Q4 2024, showcasing aggressive bundle, trade-in and new line promotions, as carriers, retailers and OEMs highlighted their products and services for the gift giving season.
Trade-in and bundle offers typically experience a surge in Q4 when carriers promote flagship devices to increase their premium user base.
Offers allow carriers to attract users who are in the market for a new smartphone by offering them an attractive deal for their old phones. Traditionally carriers have offered the best values to users who subscribed to their premium plans and traded in relatively newer device models in good condition.
However; the past few quarters have seen a relaxation in these terms as carriers’ battle intense competition for subscribers, not only from fellow telcos, but also from cable MVNOs and handset manufacturers.
Source: GlobalData Pricing and Promotions, Handset Promotions U.S., October to December 2024
Verizon popularised the ‘any model, any condition’ trade in promotion trend back in 2021
While carriers have periodically allowed users to trade in devices in poor condition (including with cracked screens and water damage) and get the best trade-in promotional value on their non-premium smartphones, Verizon popularised the ‘any model, any condition’ promotion trend in Q4 2023 when it allowed its new line customers to save up to $1,800 by trading in their old Samsung phone for a Samsung Galaxy S23+ with an Unlimited Ultimate plan.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataNew customers could also get up to $1,900 in savings when they trade in their old Pixel phone for the Pixel 8 Pro on an Unlimited Ultimate plan.
Buoyed by the success of that initiative in Q4 2024, Verizon further sweetened the pot for select new line smartphone users by allowing them to get the maximum savings by trading in any device in any condition regardless of any damage or how old the phone was, on its non-premium Unlimited Welcome plan, further lowering the barriers of entry for new line users.
T-Mobile joins the bandwagon
T-Mobile’s trade in terms are typically complicated, featuring multiple promotional tiers for different trade-in devices and service plans.
However; in an effort to further encourage high value subscribers, in Q4 2024, T-Mobile joined the ‘any model any condition’ trade in promotional bandwagon with a $1,000 rebate on select premium smartphones with a Go5G Next plan and trade-in of an eligible phone in any condition.
AT&T’s promotions often feature a low threshold for trade-in devices
For its part, AT&T has consistently catered to its existing users with matching terms for its new line trade-in and upgrade trade-in offers. In Q4 2024, AT&T’s trade eligibility requirements are among the most straightforward in the industry often requiring trade in devices to be valued as low as $35 to get the best promotional offers.
AT&T and Verizon’s policy of offering the same deals for new line and existing users, and in the latter’s case accepting any model, any condition trade-ins on flagship devices contributed to their increased upgrade rate in Q4.
Other carriers should take note of these practices to enhance their premium subscriber base. However; while this shift in carriers’ promotional strategies might encourage more users to jump ship once their device financing agreements are paid off, carriers need to also make sure that similar benefits are extended to their existing user base to avoid churn.
