Mobile consumers aren't trading in their phones quite as quickly as they once did. Likely because phones are now build with higher amounts of on-device storage or like directly to the cloud, making the need of on-device storage not as high. Still, there are a few things that will likely entice consumers to trade up - and one of those things is the security of their data with the mobile provider, OEM, or 3PL with whom they do business.
According to Blancco's new survey about half of mobile consumers (58%, globally) are holding on their old phones without trading up, although about two-thirds (64%, globally) say they would trade if the new carrier or OEM had more strict data management in place. Why do consumers care about the data on their old phones? Because more (66%, globally) worry that after trading in an old device, the data stored within that device could somehow be accessed by either a new user or through a breach of the company which bought the older device.
"The current ecosystem is made up of multiple stakeholders that collect devices from various touchpoints and redistribute them to many other parties. Since the speed of device processing is the only critical success factor, and as more devices flood the market, the chances of data breaches or issues related to data misuse will become increasingly likely," said Russ Ernst, EVP, Products & Technology, Blancco. "The secondary device market remains an amazingly lucrative and exciting opportunity for everyone, but only if it retains full consumer confidence built on trust and data integrity."
Breaking down the data for US-based consumers, Blancco found that about one-third (34%) had never been given the option for device trade-in. Of those who know about trade-in options, 68% said they would be more likely to trade if there were stronger data management controls in place, similar to the global findings.
On a global scale, 58% of consumers report they want better regulation to tighten data management controls. Nearly half (48%) say they would "seek legal advice" if they became a victim of a data breach from a device trade-in.
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