Is the resale market affecting which model iPad 2 you choose?

Discussion in 'iPad' started by urkel, Mar 8, 2011.

  1. urkel macrumors 68030

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    Nov 3, 2008
    #1
    (This is meant to be a pre-purchase topic so hopefully it doesnt offend anyone)

    With the iPad 2 just about here then most of us are already set on what we "want" but for me there's one more thing to consider and it's affecting which model I'll actually buy.

    "How long do you plan on owning the iPad you choose?"

    The reason this is an important question is because of what is happening in the resale market. The last I checked then iPads purchased less than a year ago at $500/600/700 are averaging on ebay for $310/340/380 which is a significant dropoff for an Apple product. And considering its widely accepted that both the iPad and iPad 2 are interim products before the real magic begins with the iPad 3 then resale value should be considered when trying to decide between a $349 16GB iPad or the $829 64GB iPad 2 3G.

    Personally, I originally intended on a 64GB iPad 2 but Im rethinking my buying strategy since I know that I'll probably sell next year so I'm teetering between the 16GB and 32GB iPad 2. But thats me.
     
  2. advan031 macrumors 6502

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    Aug 16, 2008
    #2
    I'll upgrade again next year if they implement a retina display or something close to it after that I'll go to a 2 year upgrade cycle like my iPhone.
     
  3. dansto82 macrumors newbie

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    Mar 7, 2011
    #3
    Im gonna but what i want.........not really concerned about resale. But it all comes down to want and money. I want something and i have the money so i buy it. Ill be buying a 32 and 64 on fri both wifi
     
  4. maflynn Moderator

    maflynn

    Staff Member

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    May 3, 2009
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    Boston
    #4
    I don't consider future resale value when I decide whether I want to purchase an iPad (or iPhone for that matter). Instead I determine whether the device fits a need.

    As for now, I'm content with the iPad 1 and will use that until apple updates the iPad to the point where I'll need to upgrade. So far the iPad 2 doesn't do that for me.
     
  5. meder87 macrumors regular

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    Jan 5, 2010
    Location:
    Georgia
    #5
    Honestly it doesn't matter to me. It's going to lose its value once a new one is announced. However, if you sell it before the next announcement you have a better chance of making good money. One the new one comes out it takes little time for everyone to find out and then not want the current iPad.
     
  6. ghdtpdna macrumors newbie

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    Mar 8, 2011
    #6
    -Let me preface by saying this will be my first Apple product-
    Why so? I don't understand why they are interim products? Is it because of a rumor from an Apple executive? Apple A5 is the BEST cpu/gpu combo to-date. The cameras may be mediocre but not yet tested. Retina display was pretty much impossible to begin with since it would have to be even higher than 1080p.
    I am surprised by the lack of excitement and amazement specially since most of the other tablets will use Tegra 2, already outdated SoC.
     
  7. Amnak macrumors 6502

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    Honestly the resale drop off happened after the announcement, before that I sold my 16gb for 410 I do intense to resell every year, but it dozens effect which one i buy when I need more space probably this time next year I'll get a 32 iPad 3
     
  8. urkel, Mar 8, 2011
    Last edited: Mar 8, 2011

    urkel thread starter macrumors 68030

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    Nov 3, 2008
    #8
    That's how I tend to buy regularly because i always expect a minimum of 2yrs usage on a new MacBook iPod or iPhone. But the iPad seems to already be on the brink of getting a substantial upgrade so that's why im being a lot more concerned about overall yearly value.
     
  9. Goldfrapp macrumors 68040

    Goldfrapp

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    Jul 31, 2005
    #9
    As long as you make "selling before the announcement" your rule of thumb, you're safe. ;)
     
  10. GoCubsGo macrumors Nehalem

    GoCubsGo

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    Feb 19, 2005
    #10
    I would have thought the 32 GB would have sold fast, resale that is. However, what I did not anticipate was that most bought the 16 gb and most want the 16 gb now. After being offered anywhere from $100 to $300 for my 32 gb, I figured it was not worth my time to sell. I would even venture to guess I could find a use for two ipads if I suddenly decide I cannot live without the 2nd gen. I know it took me less than 2 weeks to cave on the very device I said was useless in my lineup. Now it is a device I use multiple times a day every day.
     
  11. xfiftyfour macrumors 68030

    xfiftyfour

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    Apr 14, 2006
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    Clemson, SC
    #11
    This. I sold my iPad1 ahead of the announcement and made about $250 more than what they're going for now (and I imagine it'll get even worse once the new one is actually in customers' hands). One of the perks in keeping up with Apple rumors is that you "know" ahead of time when to roughly expect the next revision. I can't understand why so many diehards that knew they'd want an iPad2 kept their iPad1 until after the announcement had been made..
     
  12. Ava's Meeshee macrumors member

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    Jan 7, 2010
    #12
    Because there are still deficiencies obvious to consumers. Compare it to iPhone development - the 4 is the first that feels like a complete, long-lasting product. Before it people asked for a front-facing camera, a better rear camera, and a higher resolution screen. There are no more glaring loose ends, all that's imaginable now to the general public for future iterations is "a little bit better".

    The iPad can obviously benefit from the HD FaceTime cameras that were just released in Macbooks (so can the iPhone, it just doesn't seem as necessary on a small phone as it does on a tablet), and of course a Retina display.
     
  13. Ava's Meeshee macrumors member

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    Jan 7, 2010
    #13
    I was checking the same thing earlier for the same reason and I've found worse, it looks like there's almost a negative premium for the higher gig units. Definitely 16GB this round.
     
  14. WLS macrumors 65816

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    Jul 10, 2008
    #14
    I'll definitely be buying the hottest newest iPad every year. The collapse of the resale market after the keynote and Apples' repricing of the gen1 models was shocking to me and will affect what I buy in the future and when I sell. On the resale market cheap is king. You can spend hundreds more on extra memory and 3G but you won't be able to get it back like you might want.
    So the strategy to minimize ones losses is buy the basic model and start selling it in Jan or Feb.
     
  15. ghdtpdna macrumors newbie

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    Mar 8, 2011
    #15
    I agree with the camera but we have yet to see what it is actually capable of.
    Do you even know how high the resolution would have to be for it to be a retina display? Mass produced 10inch retina display is years away. Highest mass produced monitor resolution is 2560X1600 or something. I would say when Ipad 4~5 comes around in year 2013~14, would that ever be possible.
     
  16. Ubele, Mar 8, 2011
    Last edited: Mar 8, 2011

    Ubele macrumors 6502a

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    Mar 20, 2008
    #16
    Yes, resale value is playing a part in my decision to get the entry-level 16 GB WiFi iPad 2. I tend to keep computers as long as they meet my needs, upgrading components over time to spread out the cost. (I kept my Mac G4 Sawtooth for almost eight years before giving it to my dad, who used it for another two until it died.) But the iPad isn't upgradeable, and I suspect I'll sell it and buy the new model every other generation, as I'm doing with the iPhone. I recently sold my wife's and my iPhone 3G's, after we upgraded to the iPhone 4. I had several offers on my wife's 8 GB model, and sold it for $200, which was about what I'd expected. I had no offers on my 16 GB model, so I dropped the price a couple times over two months until I finally sold it for $200. Nobody wanted to pay a premium for the extra 8 GB.

    My theory is that most people who buy the previous model of an iPad or iPhone do so because they have limited funds and want to spend the least amount of money possible. $200 seemed to be the psychological price point for an iPhone 3G earlier this year, at least in my area. Someone with $300 to spend was more likely to go for a used 3GS rather than a 16 GB 3G. Similarly, someone with $500 to spend probably would buy a new 16 GB iPad 2 rather than a used 64 GB iPad, because the upgraded features have more perceived value than the extra RAM. That drives down the price of used 32 GB and 64 GB iPads more than used 16 GB iPads.

    It's similar with cars. When my wife went shopping for a used car, she wanted a previous-generation Acura TL. We were surprised to find that comparable used RLs (year and mileage) were only about $3,000 more, when the price difference new was almost $15,000. Most people who can afford a luxury car trade in their old one and upgrade to a new one, which benefits those of us who don't mind driving a used previous-generation model.

    I wonder if iPhones and iPads will eventually reach a point when the difference between each generation becomes less significant, and people hang onto their current models longer, as is the case with computers. My early-2008 MPB is still fast enough for everything I do, and though I like to drool over the new models, I don't see what value a 2011 MPB would add for me, so I can't justify upgrading. My iPhone 4, however, is better than my 3G in many ways. If I didn't think that the iPad 2 is $150 better than the iPad, I'd buy a refurbished 16 GB iPad for $350.

    To circle back, resale value is only one factor in my decision to buy a 16 GB WiFi iPad 2. Having read various threads on the matter, I think 16 GB will be enough for me. I have an 80 GB iPod video that holds my entire music collection, so I don't need to store music on my iPad 2. I don't forsee storing much video, because I prefer to watch most things on a big-screen TV. 3G would be nice to have, but since my iPhone 4 has 3G, it would be an expensive luxury in my iPad 2. My primary uses will be web browsing, email, ebooks, photos, and whatever apps catch my fancy. If it turns out that I want or need more RAM and/or 3G, well, the next iPad is only a year away, and I can buy a more-expensive model then.
     

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