iPhone depreciation

[ravinder08]

I think you have to think of it in terms of total cost with whatever contract you're on.

Last year on 5S launch day I bought a 64GB for £719 direct from Apple and have had a £15 a month sim only contract for it. Last week I sold it for £430 on Ebay (with a couple of cases so lets say £400 was the phone). Take fees off the £400 and I'm left with £340 in my pocket:

£719 +
£15 x12 =
£899
- £340 (resale income)
= £559 (£46.58 a month as a whole cost).

So either way, when you compare it to the same carriers phone and sim contact I would have been paying a £149 upfront cost and then ~£50 a month (for 2 years not just the one year before I could upgrade).

If you then think what might have happened if I had kept the 5S for another year... Say I would net £200 in the end for the phone at that point (basing this on what i got for my then two year old 4s a year ago when i sold that).

£719 +
£15 x24 =
£1079
- £200 (resale income)
= £879 (£36.63 a month as a whole 2 year cost).

So whilst I get less for the handset after two years (though based on my experience a lower proportion of the start value is lost in year two than year one) the total monthly cost has reduced by more than 20%. So from that point of view keeping the handset for two years would be better value.

But it really depends if you're buying the phone outright or on contract (most now seem to be 2 year ones anyway) and how much you want the latest phone each year, (for me its worth the extra monthly cost to sell after a year and get the new phone).

Thank you so much.
I buy my phones outright from Apple Store and get a cheap sim deal £10 per month. Which gives me all the minds, texts and data I need.
I kept my iPhone 4s for 3 years and sold it on fleabay for £140.
I will probably keep my 6 for 2 years now and sell a few weeks before new iPhone is released to get max money for it.

 

[StophMac24]

My wife has yet to ever pay for an iPhone. Every year we sell her old model and get enough to buy her a new one. Helps that her mom who doesn't care about upgrades lets her use it every 2 years. My wife's upgrade falls on the even years and her mom on the odd years. She gets a new one every year at subsidized prices and sells it for double.


But thats not the norm.

I had a 32GB 5S I sold on craigslist and no one wanted to pay near $500 for it, even though it retails new for $600. I ended up selling it for $400. The market for the 5S tanked as soon as the 6 and 6+ came out.

In the past, because Apple releases 1 new phone, it keeps last year's tech holding good value, but since the 6 and the 6+ came out and they are new form factors, the 5S values have tanked.

The best year to sell is the year the S model is released. Since it usually only has a handful of upgraded features, but the same form factor, people who aren't willing to buy one new under contract, don't mind getting something close to it (ie, the non S model) without having to lock themselves into a contract.

 

[ravinder08]

My wife has yet to ever pay for an iPhone. Every year we sell her old model and get enough to buy her a new one. Helps that her mom who doesn't care about upgrades lets her use it every 2 years. My wife's upgrade falls on the even years and her mom on the odd years. She gets a new one every year at subsidized prices and sells it for double.


But thats not the norm.

I had a 32GB 5S I sold on craigslist and no one wanted to pay near $500 for it, even though it retails new for $600. I ended up selling it for $400. The market for the 5S tanked as soon as the 6 and 6+ came out.

In the past, because Apple releases 1 new phone, it keeps last year's tech holding good value, but since the 6 and the 6+ came out and they are new form factors, the 5S values have tanked.

The best year to sell is the year the S model is released. Since it usually only has a handful of upgraded features, but the same form factor, people who aren't willing to buy one new under contract, don't mind getting something close to it (ie, the non S model) without having to lock themselves into a contract.

Thanks will see how much I can for it a month before the new one comes out so price doesn't drop too much.

 

[BigHonkingDeal]

I know a lot of people talk about the 'great resale value of iPhones'... but I'm just not seeing that.

Just looking on craigslist in my area I see a massive drop from brand new -> 1 year old.

An iPhone 5s 16gb (retails $650 brand new a year ago) goes for an average of $350 give or take.

That's roughly a 46% drop in value!

Well right now is not the best time to sell of course. I sold my iPone 5S a 6 weeks ago because I knew the new one will be putting a damper on the resale value....

Got $540.- for it.

 

[StophMac24]

Well right now is not the best time to sell of course. I sold my iPone 5S a 6 weeks ago because I knew the new one will be putting a damper on the resale value....

Got $540.- for it.

Jealousy has set in.....lol

 

[ssl0408]

I sold my 16GB iPhone 5S (unlocked) to AT&T for $300 yesterday. I also had it listed on Craigslist for $350 and I got a lot of interest, but in the end it became a pain because of trying to find a place to meet up with people. I waited to the last day to list it because I didn't want to be without a phone for more than a day. The extra $50 in the end wasn't that important.

 

[soundxplorer]

She gets a new one every year at subsidized prices and sells it for double.

Subsidized prices are pretty much the same as new prices, maybe $50 or $60 less at most, because your monthly bill could be lower without the contract. You're paying for the phone whether you realize it or not.

 

[StophMac24]

Subsidized prices are pretty much the same as new prices, maybe $50 or $60 less at most, because your monthly bill could be lower without the contract. You're paying for the phone whether you realize it or not.

Not necessarily. I have done the math. In fact I have a whole spreadsheet reflecting actual cost on our family plan vs on Next and with Mobile share and its cheaper for us on our family plan with the subsidized prices.

And considering she gets $200 over what she paid every year, we really haven't paid for her phone with anything other than money from prior sale. When you factor in the money we make on the phone from the sale and annualize it, we are better on the family plan.

 

[ravinder08]

I think you have to think of it in terms of total cost with whatever contract you're on.

Last year on 5S launch day I bought a 64GB for £719 direct from Apple and have had a £15 a month sim only contract for it. Last week I sold it for £430 on Ebay (with a couple of cases so lets say £400 was the phone). Take fees off the £400 and I'm left with £340 in my pocket:

£719 +
£15 x12 =
£899
- £340 (resale income)
= £559 (£46.58 a month as a whole cost).

So either way, when you compare it to the same carriers phone and sim contact I would have been paying a £149 upfront cost and then ~£50 a month (for 2 years not just the one year before I could upgrade).

If you then think what might have happened if I had kept the 5S for another year... Say I would net £200 in the end for the phone at that point (basing this on what i got for my then two year old 4s a year ago when i sold that).

£719 +
£15 x24 =
£1079
- £200 (resale income)
= £879 (£36.63 a month as a whole 2 year cost).

So whilst I get less for the handset after two years (though based on my experience a lower proportion of the start value is lost in year two than year one) the total monthly cost has reduced by more than 20%. So from that point of view keeping the handset for two years would be better value.

But it really depends if you're buying the phone outright or on contract (most now seem to be 2 year ones anyway) and how much you want the latest phone each year, (for me its worth the extra monthly cost to sell after a year and get the new phone).

Thanks for the breakdown!

Will upgrade every 2 years I think. I always buy my phones outright from my local Apple Store.

 

[loon3y]

i sell my iPads or give them (last one i gave to my mom)


but i keep all my phones

iPhone 3GS
iPhone 4S
iPhone 5S
iPhone 6

 

[epphllps]

I've definitely noticed a difference this year in the resale price of iPhones. Usually sell mine iphone after upgrading and get $450-500 regularly. Can't sell my Verizon 5s for even $420 with several top dollar cases included and in everything in mint condition.

I would rather keep the thing as a backup than sell it for under $400, as I paid full retail for it. I think it I upgraded to it I would sell it for less, but I'll hold it until someone snatches it up for my listed price. Hard pill to swallow to let a mint phone go for the same value I see "good" condition phones selling for.

The joy of selling electronics, haha. Could be worse, resale of an android phone is much worse from what I've seen. I was never able to sell my androids for anything compared to what an iPhone can get you.