Android Phone Value

[nviz22]

So over the last few months all the way to the last several years, I have noticed Android phones lose value too quick for comfort. Each of these values were used to compare to T-Mobile USA's price points if available. eBay, Swappa, and Slickdeal ads are being used to discuss price drops. All devices are brand new too.

The S7/S7 Edge (almost out for 2 months technically, but released in early March) went from $670 USD/$770 USD on T-Mobile respectively to $500/$600 respectively. That's not too bad, right?

LG G5: $629, dropped to $450 brand new. That phone has barely been out for a few weeks.

HTC 10: $699 regular price, $599 with coupon, but this is the lone exception, HTC has it sold unlocked through them. T-Mobile's price points aren't out yet.

Nexus 5X: Not on T-Mobile, but started at $379/$429 for each memory iteration 16/32 GB. Now? $199/$249 with Project FI subscription and subsequent cancelation where you can get a refund.

HTC One M9: Started at $650, dropped as low as $250 brand two months ago. HTC phones will drop to $400 roughly a month or so after launch. Happened with the M8 and M7 too.

I have noticed similar patterns with the Nexus 6P, Nexus 6, HTC One M8, HTC One M7, GS5.

Does this hurt consumers? The fact that they buy phones at launch at exorbitantly high prices, especially when companies can sell more phones if they drop pricing into $450-$500 range tops? Make phones better at cheaper prices while selling even more phones? LG and HTC have somewhat comparable products to Samsung, yet don't go for the undercut with the flagship markets.

 

[Dave.UK]

Does it really matter? Buying a phone isn't an investment opportunity.

Get the phone you want and enjoy it. If you want it cheaper, then just wait a bit.

Cant see it being anything but good for consumers.

 

[mi7chy]

Is this something new? Things depreciate especially a product in a competitive environment. Your new car depreciates immediately once you drive off the lot. Use common sense to minimize depreciation such as not buying immediately after release at full retail.

 

[nviz22]

Is this something new? Things depreciate especially a product in a competitive environment. Your new car depreciates immediately once you drive off the lot. Use common sense to minimize depreciation such as not buying immediately after release at full retail.

But at the same time, HTC is dying out despite releasing terrific products. People that want to support them might have to give up if they fail to make margins. And by overpricing, less competitors means Samsung can run away even more with shoddy after purchase support. It's not about depreciation itself, rather the pace.
[doublepost=1461441041][/doublepost]

Does it really matter? Buying a phone isn't an investment opportunity.

Get the phone you want and enjoy it. If you want it cheaper, then just wait a bit.

Cant see it being anything but good for consumers.

Yes, it does. My carrier released a bogo sale on the S7/S7 Edge, which hurts early adopters. Nobody expect a bogo a week into the release.

 

[Jinzen]

But at the same time, HTC is dying out despite releasing terrific products. People that want to support them might have to give up if they fail to make margins. And by overpricing, less competitors means Samsung can run away even more with shoddy after purchase support. It's not about depreciation itself, rather the pace.
[doublepost=1461441041][/doublepost]

Yes, it does. My carrier released a bogo sale on the S7/S7 Edge, which hurts early adopters. Nobody expect a bogo a week into the release.

HTC hasn't released a good product in like 3 years. Even the 10, while great, could have done a little better with a bigger battery and a brighter display. Oh well. I'm still buying the 10.

 

[Klyster]

T mobile still has the 7 edge at $779...
http://www.t-mobile.com/cell-phones/samsung-galaxy-s7-edge.html

 

[nviz22]

HTC hasn't released a good product in like 3 years. Even the 10, while great, could have done a little better with a bigger battery and a brighter display. Oh well. I'm still buying the 10.

Depends who you ask. HTC's One M7/M8/M9 sold a good enough amount to continue making them.

 

[macfacts]

... Does this hurt consumers?

No. Maybe you think day 1 buyers are hurt but they got it early. Also, these price drops are not secret, day 1 buyers know this but choose to get new tech before everyone else.

 

[Channan]

That's the price you pay for getting a phone so close to launch. If you can be a little patient, you'll wind up saving a lot of money by getting an Android phone.

 

[The Game 161]

It's to hard to sell android phones or at least Samsung phones. Certainly don't get anywhere near the value the iPhone gets you. Only real downside if you like upgrading every year.

 

[Jinzen]

Depends who you ask. HTC's One M7/M8/M9 sold a good enough amount to continue making them.

You can ask their tanking company valuation and quarterly losses.

 

[nviz22]

You can ask their tanking company valuation and quarterly losses.

They can make up for it by selling a lot cheaper. I think they're going to get a Nexus too, so that will be huge for them since a lower end Nexus could get a 820/823 with QHD screen at the 5.2" mark and then put 3GB of RAM instead of 4.

 

[zonazolazia]

It's to hard to sell android phones or at least Samsung phones. Certainly don't get anywhere near the value the iPhone gets you. Only real downside if you like upgrading every year.

But the good thing is you can also get a very good price if you're patient and willing to wait.

 

[MRU]

Its just annoying for serial early adoptees - who sell on their phones. They are the ones who get burned. Most folks are not like us. They don't have multiple phones, let alone 16 in a year !!!!!



Those that buy through carriers, or buy a single phone once every few years - can get could deals just waiting.

Most of us here have NO patience to wait, we are exceptions rather than the majority however.

 

[macfacts]

The Apple way is Apple controls the price so flagship devices only lose value when the new version comes out. Problem with that is if you don't buy on day 1, you are paying full price for old hardware and paying full price for tech that will be updated in a couple months. If you buy a Mac Pro today, same thing.

 

[spinedoc77]

So over the last few months all the way to the last several years, I have noticed Android phones lose value too quick for comfort. Each of these values were used to compare to T-Mobile USA's price points if available. eBay, Swappa, and Slickdeal ads are being used to discuss price drops. All devices are brand new too.

The S7/S7 Edge (almost out for 2 months technically, but released in early March) went from $670 USD/$770 USD on T-Mobile respectively to $500/$600 respectively. That's not too bad, right?

LG G5: $629, dropped to $450 brand new. That phone has barely been out for a few weeks.

HTC 10: $699 regular price, $599 with coupon, but this is the lone exception, HTC has it sold unlocked through them. T-Mobile's price points aren't out yet.

Nexus 5X: Not on T-Mobile, but started at $379/$429 for each memory iteration 16/32 GB. Now? $199/$249 with Project FI subscription and subsequent cancelation where you can get a refund.

HTC One M9: Started at $650, dropped as low as $250 brand two months ago. HTC phones will drop to $400 roughly a month or so after launch. Happened with the M8 and M7 too.

I have noticed similar patterns with the Nexus 6P, Nexus 6, HTC One M8, HTC One M7, GS5.

Does this hurt consumers? The fact that they buy phones at launch at exorbitantly high prices, especially when companies can sell more phones if they drop pricing into $450-$500 range tops? Make phones better at cheaper prices while selling even more phones? LG and HTC have somewhat comparable products to Samsung, yet don't go for the undercut with the flagship markets.

I think it does indeed hurt the market. Consumers will hang onto their phones longer and upgrade less. With that said it seems they have it all figured out with the installment plans. The siren call of easy credit and borrowed money is much too strong for consumers to resist. Just to draw a parallel I lease my car, which means I'll be paying a lease forever but I also get to trade it in for a new one every 3 years.

I'd be curious to see a graph showing how many consumers outright buy a phone full price, versus a payment plan. My gut tells me the payment plans are much higher.

As for the drop in price, yeah it's there for Android. It's not a bad thing, it means some of use can buy slightly used phones for much less. The market is what it is, and consumers are only willing to pay for some things and not others.

 

[aneftp]

It sucks to be an early android high end flagship phone adopter.

My LG G3 (I really like the G watch promo 1/2 off at att 2 years ago when it launch). I just wanted to try the G watch at the time!

But my G3 was $580 plus taxes. One year later I couldn't get more than $220 for it. Not worth reselling.

It's probably worth no more than $120-150 if that after 2 years (if that since very little interest in used 2 year old androids). So I keep it around.

Since att no longer gives me subsidized contract pricing (I have grandfather unlimited data plan that's still cheaper than even direct tv unlimited promo even without the subsidy)

Anyways. Just wait for promo and trade in for att next.

Like I had really old 3.5 year old almost worthless Windows Nokia lumia 822. Got $200 Best Buy gift card trade in when i got the S7 3 weeks ago.

Costco SAMs clubs target etc all ran installment promo with $250-300 gift cards on installment pricing as well.

So wait for promo. Don't pay full price.

Of course I will try to get the bogu $20 att next upgrade fee waived. That all factors into the "cost basis" of selling and reselling.

But those people who got $300 Costco gift card during the thanksgiving 2015 for iPhone 6S probably will make off like bandits. Cause say phone is $650 plus taxes plus the than $15 upgrade att next few.

So that's around $720? For base iPhone 6s?

Subtract the $300 gift card (Costco gift card is essentially like cash to most people since we spend so much money there)

So my cost basis for iPhone 6S base is really $420 when factoring the $300 gift card.

Even if u did att next for 12 months (att next 18). (Around $30/month installment) that's $360 in installments.

So really only cost u around $100 to lease the phone for one year and than u look for the next att next promo.

Or just pay off iPhone 6S in full and easily resell it for $400 come next Sept 2016.

That's how you play the buy/resell game. Use promos.