Lucrative revenue source for operators, OEMs and third-party
logistics providers could be diminished without clear assurances
around responsible data management
AUSTIN, Texas and
LONDON, Feb. 13, 2019 /PRNewswire/ -- Results of an
exclusive global consumer research study examining consumer
sentiment and actions for trading in mobile devices was released
today by Blancco Technology Group (LON: BLTG), the industry
standard in data erasure and mobile device diagnostics. Blancco
found that 58 percent of global consumers surveyed have yet to
trade in an old device, though almost two-thirds (64%) globally
reported they would be willing to do so if more stringent data
management processes were in place.
This is good news for mobile operators, OEMs and third-party
logistics providers (3PLs) who, according to Counterpoint Research,
have seen revenues for the used device market grow faster than the
market for new devices. According to IDC, the worldwide refurbished
phone market is estimated to be worth $52.7
billion by 2022.
Blancco's study, titled "The Critical Importance of Consumer
Trust in the Second-Hand Mobile Market," proves the need to
maintain consumer trust if the secondary mobile device market is to
meet current expectations. In fact, 66 percent of respondents
globally revealed some concern that data on their old devices might
be accessed or compromised after trade-in. This mistrust among
global consumers could be attributed in part to recent high-profile
incidents of data misuse, such as the Facebook and Cambridge
Analytica scandal.
"The secondary mobile device market is a huge success story,"
said Russ Ernst, EVP, Products &
Technology, Blancco. "Each of its major stakeholders – operators,
OEMS and 3PLs – have so much more value to extract from it as more
global consumers choose to sell or buy used equipment if they trust
in the process of used device collection and redistribution. Our
study makes it clear, however, device collections will accelerate
only if operators, OEMs and 3PLs remain fiercely committed to data
management and device erasure best-practices."
Additional global findings:
- 40 percent of global consumers experiencing a data breach would
switch operator or OEM provider, while 54 percent of global
consumers wouldn't trust the brand and 49 percent wouldn't use the
company again
- Almost half (48 percent) of consumers would seek legal advice
if they were to fall victim to a data breach after trading in an
old device
- 59 percent of global respondents called for stronger regulation
to ensure tighter data controls are implemented to prevent breaches
of their personal information
Specific U.S-based findings:
- 35 percent of respondents have never been offered the option to
trade-in their device, the lowest percentage of any of the
countries surveyed
- 68 percent of respondents said they'd consider trading in their
old devices if there were tighter controls to ensure responsible
data management
- 17 percent of respondents are concerned that the data on their
old device might be compromised/accessed after trade-in, indicating
a false sense of security
The need for tighter regulation for the secondary device market
is highlighted by the sheer quantity of illegitimate mobile retail
organizations currently looking to buy and sell used devices. These
operations regularly buy and sell used devices from consumers
without complying with any data security guidelines. Interestingly,
when consumers were asked where they would consider selling their
used devices, 36 percent admitted they would prefer to sell them
directly on eBay or Amazon rather than via mobile operators or
specialist online trading sites where consumers have no assurances
their data is being properly erased before the device is resold.
These often-illegitimate, ungoverned practices undermine trust in
the secondary device market and must be properly regulated to
preserve and maintain consumer confidence.
"Without a common, mandated and regulated rule book for
smartphone processing, the ecosystem will be subject to abuse and
malicious attack," Ernst said. "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. 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."
For full analysis, read the report "The Critical Importance of
Consumer Trust in the Second-Hand Mobile Market" here.
About the research
The study was commissioned by
Blancco Technology Group and conducted independently by Sapio
Research in December 2018 and
January 2019. Respondents were 5,000
consumers divided equally between the UK, the United States, Germany, India and the
Philippines.
About Blancco Technology Group
Blancco is the industry standard in data erasure and mobile
device diagnostics. Blancco data erasure solutions provide
thousands of organizations with the tools they need to add an
additional layer of security to their endpoint security policies
through secure erasure of IT assets. All erasures are verified and
certified through a tamper-proof audit trail.
Blancco data erasure solutions have been tested, certified,
approved and recommended by 18 governing bodies and leading
organizations around the world. No other data erasure software can
boast this level of compliance with the rigorous requirements set
by government agencies, legal authorities and independent testing
laboratories.
Blancco Mobile Diagnostics solutions enable mobile network
operators, retailers and call centers to easily, quickly and
accurately identify and resolve performance issues on their
customers' mobile devices. As a result, mobile retailers can spend
less time dealing with technical issues and, in turn, reduce the
quantity of NTF returns, save on operational costs and increase
customer satisfaction.
Additionally, Blancco Mobile Diagnostics solutions empower
mobile processors, 3PLs, Recyclers and Repair & Refurbishment
Operations to easily, quickly and accurately process used mobile
devices to identify any issues and determine overall value. By
incorporating Blancco Mobile Diagnostics, mobile processors
automate processes, deliver intelligent routing based on device
attributes and increase overall efficiency, while driving
incremental revenue and profitability.
Contacts
CCgroup for Blancco Technology Group (UK)
Abbie Godward / Adam Millar
T: +44 (0) 20 3824 9214
E: blancco@ccgrouppr.com
CCgroup for Blancco Technology Group (US)
Lori Scribner
T: +1 619 798 0043
E: blancco@ccgrouppr.com
Blancco Technology Group
Liz Adams, Global Marketing
Director
T: +44 (0) 7725 010 412
E: liz.adams@blancco.com
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