Resale value

[jazzer15]

After going back and forth some between the various available options, I recently purchased a 3G 32gb iPad 2. Although I am not a constant upgrader, I think there is a reasonable possibility I might like to upgrade to the iPad 3 a few months or so after it is released. A lot will, of course, depend on what new features come out.

In the event I were to sell my iPad 2 to upgrade down the road, how do you think the value would compare to selling a base model? In other words, I was wondering if, for example, a typical used base model were selling for around $300, whether it is reasonable to assume that each of the iPad 2s would likely be selling for about $200 off it's original price.

The bottom line question is, assuming someone expects to upgrade, is there a financial advantage to choosing one model vs. another?

 

[GoCubsGo]

I always believed that having the middle model in iPhones and iPads was best in terms of resale. However, the 16GB wifi only iPad was quite popular and I believe that continued with both renditions of the iPad. You cant totally predict these things.

 

[jsh1120]

A pretty good rule of thumb (at least as a starting point) is to figure that resale of "options" varies between 0-50% of purchase price. Based on that rule, the "value" of 32G vs. 16G is about $50. (based on the original $100 difference.) That would mean that the 32G model would be $350. (Based on your assumption of a $300 resale value of a 16G model.)

Another approach is to assume that if the 16G base model is selling at 60% of its original price ($300/$500), the same would be true of the 32G model ($600*.6) = $360.

Your pricing model assumes you can recoup the entire $100 original difference in price between the two models. That, I think, is unrealistic.

By the way other "options" may be worth much less than their original purchase price. A case, for example, is typically an option people want to select for themselves. Thus, it's probably worth very little, if anything, at resale. And if you engraved your iPad it's worth less than nothing as an option.