Analyst says trade-ins won’t slow sales of new products

Amazon quiet about tech trade-in scheme in UK

Following Amazon US’ announcement of an electronics trade-in program, the retailer is not commenting about whether or not it will launch in the UK.

Amazon US offers gift cards in return for users sending in their old electronics, such as iPhones and iPads.

When contacted by PCR requesting details about a possible appearance of the trade-in program in the UK, an Amazon UK spokesperson stated that the online retailer "can’t speculate on future plans".

PCR asked retail analyst Context for its thoughts regarding the news.

CEO and co-founder Jeremy Davies said Amazon is making its shopping experience "more attractive by offering trade-ins," but that it is "unlikely to affect sales of new equipment."

"It will be successful if they get the logistics right," he added. "Trade-ins are a good way to encourage buyers to trade up to the newer models, and not wait until the device they have gets old and out of date."

He made a comparison with the used car market – new car sales are still strong, regardless of the amount of user cars on the market – and went on to talk about what it means for tech distributors.

"Amazon’s move means nothing for distributors," he said. "Either that or Amazon may choose to use distributors’ returns handling capabilities."

Apple is also launching its own in-store iPhone trading-in program.

Asked whether he believed electronics manufacturers would ever introduce countermeasures to discourage second-hand sales, Davies said that the use of restrictions on pre-owned hardware would be “unlikely”.

"The only thing that would need licensing is the operating system," he said. "But the assumption is that the OS will be carried across with the hardware."

Check Also

NFON UK Kicks-Off 10th Anniversary Year

NFON UK, a subsidiary of NFON AG, a European provider of integrated business communications from …