In 2007, the iPhone was announced in the United States. Android was also announced in the same year, and the era of smartphones truly arrived.
More than a decade has passed since then. According to the Ministry of Internal Affairs and Communications'2023 Communications Usage Trend Survey, the household ownership rate of smartphones exceeds 90% at 90.6%, making it an essential infrastructure for daily life.
Smartphones are also clearly consumables. Many users are likely upgrading to their second or third smartphone due to issues like dirt or damage to the device, or battery life.
So, what do you do with your old smartphones that you've used so far?
Trade-in? Recycle? Use as a sub-device? In a drawer?
This time, we will introduce Assurant's initiatives that support the global used device market through cutting-edge automation technology.
Japan's Used Device Market Lagging Behind the World
Assurant, Inc. is a global company listed on the New York Stock Exchange.
Over its history of more than 130 years, it has provided top-class services to 325 million consumers worldwide in a wide range of industries, including:
- Home Appliance/Smart Home Appliance Protection
- Vehicle/Commercial Equipment Protection
- Mobile Lifestyle Management
- Lenders Insurance, Homeowners/Renters Insurance, and Solutions
- Solutions for Financial Service Providers
Currently, over 13,000 employees work at locations in 21 countries, and they point out that Japan is one of the most important markets.
Among these, we are focusing on the used smartphone market this time.
It is on a continuous growth trajectory globally, with 19% of the total number of devices sold in 2024 being used devices.
Furthermore, this growth is expected to continue for the next three years.
However, according to Assurant's research, the usage rate of used smartphones in Japan is approximately 6%.
The difference compared to the rest of the world is significant, and the current situation is that they are not being fully utilized.
On the other hand, data shows that AI-equipped devices, which have been attracting attention in recent years, are stimulating consumers' willingness to replace devices, and the average smartphone lifespan has decreased.
The amount consumers receive through trade-in has also been increasing year by year, reaching 4.5 billion dollars (approximately 670 billion yen) in total received by consumers from trade-in programs in the United States in 2024.
In this context, Assurant views used smartphones as assets and believes that by investing in all of the following and maximizing their value, they can contribute to profits for each business operator and the creation of a sustainable society:
- Technology
- End-to-End System Building
- Intellectual Property
Assurant, Inc.'s Automated Device Processing Facilities Process Up to 20 Million Devices Annually
Assurant, Inc. processes up to 20 million devices annually at its 8 device care centers worldwide.
This is equivalent to approximately 4 billion dollars in device value, and these operations are supported by over 2,500 staff members with specialized skills.
Among these, the flagship facility in Nashville, Tennessee, USA, has a vast area of 24,000 square meters and shipped 15 million devices in 2024 alone.
At this device care center, they approach from both software and hardware aspects and have succeeded in automating processes using AI (reference video).
High-quality automation is extremely important from the perspective of "reproducibility," which provides consistent output, and it has also significantly reduced the average device processing time to 10 days, compared to the industry standard of 50 days.
Assurant Japan Also Aims to Expand Automated Facilities in Japan
While Assurant, Inc. is expanding various businesses, its Japanese subsidiary, Assurant Japan, is focusing on the following two areas and developing services in Japan:
- Mobile Device Business
- Home Appliance/Housing Equipment Business
In particular, the concept that Assurant Japan advocates is "managing the entire lifestyle of a product."
For example, in the case of smartphones, Technical Support available for questions after purchasing or while using the product.
Device Protection to prepare for damage or loss.
Trade-in/Upgrade when replacing the device.
Assurant Japan comprehensively provides the services required from the moment a user starts using a product until they stop using it.
＼家電保証プラスの特徴3つ／
①メーカー問わずどこのお店で買った家電も保証
②お持ちの家電も保証
③自然故障だけでなく、うっかり落とす・ぶつかるなどで発生する“偶発的な事故起因による物損故障”も保証https://t.co/u4NT5u2BoC#家電 #保証 #トリセツ— トリセツ【公式】 (@torisetsu_biz) March 27, 2025
The most symbolic initiative is "Torisetsu" (App Store/Google Play), which centrally manages instruction manuals for various products across PC and smartphones.
It has been well-received by the market, having achieved 5 million downloads as of 2024.
And their future goals include to:
- Minimize Device Processing Costs through Automation
- Maximize Resale Profits of Used Smartphones
- Ensure Stable Supply of Certified Pre-Owned (CPO) Smartphones with Top-Class Quality
They are aiming to introduce a fully automated system, which has a proven track record in the United States, in the near future, as some manual processes are still involved in used device processing.
Furthermore, they are aiming to automate the grading process by establishing standard grading criteria for Certified Pre-Owned smartphones, thereby realizing a healthy and sustainable circular economy.
Reporter Questions
― What is the proportion of trade-in devices sold in Japan versus overseas?
Mr. Biju Nair: The reuse rate of used devices in Japan is very low, staying at around 6-7%.
Generally speaking, some clients request that trade-in devices be sold in a different market than the one they were previously in.
Japanese users seem to handle their devices very carefully, and their condition when traded in is very good, so they tend to fetch high prices overseas.
Based on the above, I think it is often the case that devices collected in Japan are sold overseas.
― Does Assurant have plans to fully launch B2C business, becoming a direct B2C player?
Mr. Junichi Fujimoto: Our main business is in a B2B2C format, so we primarily operate behind the scenes for carriers and retailers.
However, we are currently selling some used devices under the "MyWiT" brand.
Mr. Masahiro Ishitani: Actually, we don't use the name Assurant at all in "Torisetsu" either.
Currently, we often operate under brands other than Assurant.
― Regarding used device processing in Japan, my understanding is that the Ministry of Internal Affairs and Communications' approval is required for battery replacement. Is that correct?
Mr. Junichi Fujimoto: Currently, we do not perform battery replacement in Japan.
In the United States, we are operating with certification as Certified Repair.
However, we have good relationships with manufacturers worldwide, so we hope to follow that trend in Japan as well.
― When do you plan to fully automate used device processing in Japan?
Mr. Brandon Johnson: In Japan, there is a facility called the "Vision Tunnel" in operation.
And since the automated line at the flagship facility in Nashville has become stable, we would like to introduce this technology to Japan.
I hope you can think of there being significant changes around this year or next year.
Mr. Masahiro Ishitani: I think one year might be a little too ambitious, so we are aiming for around 2 years (laughs).
Currently, there are 2 "Vision Tunnels" operating, and we want to move towards further overall automation from now on.
