Won't resale prices decline significantly with the rise of upgrade plans?

Discussion in 'iPhone' started by lavventi, Sep 18, 2015.

  1. lavventi macrumors newbie

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    Sep 10, 2015
    #1
    I see a lot of people estimating how much they'll be able to resell their phone after 12 months, basing the estimated prices off of used iPhone sales from prior years. But it now seems that upgrade plans, whether through Apple or telecoms, are becoming a new norm. So won't that have a significant effect on resale prices? Or will there remain enough demand for later generation used iPhones that it won't matte? I'm guessing resale prices drop significantly.
     
  2. edlex macrumors 68000

    edlex

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    #2
    On the contrary. People have to turn in their phones to upgrade instead of selling them. Their will be less phones available in the open market.
     
  3. ttNB macrumors 6502

    ttNB

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    #3
    Well for me, my resale of my 6+, is going up this year. I used to just list my iPhone at a 2 year contract level, and maybe just a little over to cover sales cost and remainder of apple care+. But now, having to out of pocket the phone for the full price, I will be listing it above what I used to. The price range I'm aiming For is about an early upgrade on your 2-year contract, when the iPhone used to be 649.99 if you had a year and a half under your belt, you could do a partial subsidy and upgrade your line. Just a few dollars less than that figure, and it's getting listed after next Friday.
     
  4. DoofenshmirtzEI macrumors 6502a

    DoofenshmirtzEI

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    #4
    Erm. What do you think will happen to those phones turned in to upgrade? They will get resold.
     
  5. Mike B in ok macrumors member

    Mike B in ok

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    #5
    But probably most will be resold overseas, according to media reports. Disappear from North American market.
     
  6. aneftp macrumors 68040

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    #6
    Good luck with that. Prices dropping quickly on eBay. Just look at recently sold listings. U be lucky to get $550 for a 64gb plus model.
     
  7. lsutigerfan1976 macrumors 68000

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    #7
    This is what I am afraid of. I regularly sell my iPhone and buy the new iPhone with that money. And now with all these offers of financing a phone and trading it in the next year. I see most ppl getting on those deals. Although there may not be as many phones on the market to be resold. Most ppl won't care cause why buy? When you can just trade your phone in every year? That's what I am afraid will happen.
     
  8. DustinDev47 macrumors 6502

    DustinDev47

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    #8
    Don't worry. There's a sucker born every minute!
     
  9. geoff5093 macrumors 68000

    geoff5093

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    #9
    They likely won't be sold to consumers here, it's not like Apple or Verizon will sell used phones to customers.
     
  10. CEmajr macrumors 601

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    #10
    They'll stay relatively the same. The resale market is a global one that isn't limited to the US.
     
  11. iamcaseyf macrumors member

    iamcaseyf

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    Apr 28, 2015
    #11
    Good point, that is my concern as this is kind of what I have to do every year to get the newest model. I sell it slightly below full price since I have a concession line and cannot upgrade normally.

    But on the contrary, Apples iPhone Upgrade Plan is sounding more enticing. I might end up going that route next year or thereafter.
     
  12. phteven macrumors newbie

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    Jun 5, 2015
    #12
    Overall there's going to be less owned phones as carriers and Apple are promoting these "lease for a fee, get an upgrade every year" plans and such. Resale prices will probably stay the same or maybe even rise slightly.
     
  13. lavventi thread starter macrumors newbie

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    Sep 10, 2015
    #13
    Apple already sells used phones. That's what Apple-certified refurbished iPhones are. Whether Apple is the vendor directly, or whether they set up an ebay shop as they do:

    http://appleinsider.com/articles/14...certified-refurbished-unlocked-gsm-iphones-5s

    it does not matter, they're selling used iPhones. I'm sure they will be selling prior generation iPhones as refurbs and I'd imagine they will do it domestically and internationally.
     
  14. sterl320 macrumors 6502

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    Apr 3, 2015
    #14
    I personally don't feel the need to even buy I phone off eBay now that I can just use my upgrade program.
     
  15. lavventi thread starter macrumors newbie

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    Sep 10, 2015
    #15
    Somebody will still own the phones--namely companies like Apple and they will sell them in the market, as they have a value. And they will be the largest sellers of such phones and, as I'm speculating, likely drive prices down for personal users selling them in the after market.

    The supply-and-demand metrics will change, I believe. There will be more supply (more people upgrading) and less demand (more people on upgrade plans rather than buying phones to own).
     
  16. appleforme macrumors member

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    Phoenix, AZ
    #16
    I couldn't agree more. I think that we're going to see many more people upgrading every 12 months with the carrier 12 month programs and Apple's 12 month program, so the resale market will be flooded with 1 year old phones. Doesn't matter how Apple or the carriers resell the traded in phones, the market will be flooded.
     
  17. JayLenochiniMac macrumors G5

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    #17
    It might be a different market though. iPhones returned to Apple might end up as white box replacements or potentially sold as certified refurbished in the refurb store, rather than eBay, CL, swappa, etc.
     
  18. mattopotamus macrumors G4

    mattopotamus

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    Jun 12, 2012
    #18
    That is exactly what I was thinking. It should make it even easier to sell your phone if you actually own it.
     
  19. mrkramer macrumors 603

    mrkramer

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    #19
    Most private sellers aren't willing or able to sell overseas, and I'd bet that the traded in phones will end up mostly being exported to poorer countries where a lot of people can't afford new models but still want iPhones. So I don't think it'll effect the resale value too much.
     
  20. JayLenochiniMac macrumors G5

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    #20
    The analogy would be like asking how the dealers' car leasing programs affect the open market. Leased cars turned in to dealers are usually re-sold on their lots rather than the open market. Sure, they affect each other but not to the extent that members are worried about (i.e., resulting in a dramatic decline in re-sale prices).
     
  21. ttNB macrumors 6502

    ttNB

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    #21
    I do it every year. There is always some one who wants to replace the one they had, and if they are waging against a full price iPhone to a few hundred off iPhone, then you can assume they will go with whatever savings they can. My phones are flawless condition with box, and materials unused (headphones, lightning cable, and charger) in plastic. So I do get what I'm asking for. I am always open to negotiate.
     
  22. ttNB macrumors 6502

    ttNB

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    #22
    Exactly. The phone companies & Apple, are essentially doing the same thing we are. When they need to replace your phone that got damaged or just need a replacement, where do you think they come from? The ones you send back and when they give you a "new" one, it's of equal or in working condition/quality. They know iPhones hold their value. So why crack open a new box and loose revenue on a new one, when people are literally giving their phones to them, and in turn, have phones to give back to their customers.
     
  23. geoff5093 macrumors 68000

    geoff5093

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    #23
    Right they sell refurbished phones, but they always have, so that won't change.
     
  24. HEK macrumors 68030

    HEK

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    Sep 24, 2013
    #24
    The place I worked at had many employees from Yemen. They snapped up phones like crazy to send back to Yemen. Getting double what they paid for here from their relatives.
     
  25. kevink2 macrumors 6502a

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    Nov 2, 2008
    #25
    Looking through the upgrade options on ATT, there were certified used products available.
     

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