Would the discontinuation of the iPhone 5 result sustain resale value?

Discussion in 'iPhone' started by rh1, Aug 19, 2013.

  1. rh1 macrumors member

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    #1
    If the rumour that the iPhone 5 will not be cascaded down but discontinued unlike other years and Apple decides to introduce the iPhone 5C, will this move help sustain the iPhone 5 resale value?

    Example iPhone 5S released in standard fashion £529 unlocked.
    and the iPhone 5C starts at £429 unlocked.

    Will a relatively high iPhone 5C price it help sustain (moderate) the iPhone 5 resale price? assuming that some would prefer the metallic build to the plastic build..

    I know its only a phone and not an investment so just thought it might be the case.
     
  2. veneto macrumors member

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  3. Apple fanboy macrumors P6

    Apple fanboy

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    #3
    Lots of people don't like to buy second hand. If the pricing is as you suggest, I think more people would choose a new 5C, depending on specification of course.
    When your iPhone is no longer the current model, it will always be worth less.
     
  4. Dented macrumors 6502a

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    #4
    I think sadly (if this latest rumour is true) it may negatively affect iPhone 5 prices since the 5 will suddenly be "obsolete" - while the 4S for example is still a "current" model. It will raise a question in people's minds why the 5 has been dropped so quickly, ie what's really wrong with it, and will it be supported so well in terms of software etc going forward.

    As a relatively new 5 owner I hope the rumour isn't true! It certainly seems odd to drop one 4" lightning connected model while the 4S remains on sale.
     
  5. veneto macrumors member

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    #5
    Exactly, they wouldn't discontinue the 5, it's all over Apple's website. Right on the front page.
     
  6. rh1 thread starter macrumors member

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    #6
    I understand your point of people's fear for the awkward discontinuation and that's one of the reason why they need to discontinue it, to keep iPhone 5S sales up high.

    But then again, I also agree that it is more likely that if it is someones first iPhone, and they are price a bit conscious, they might settle with a new polycarbonate than getting a used iPhone 5 as they wouldn't be too picky about the build differences.

    iPhone 4S will only be around as inventory and components trickle down. This would be a non-issue for the iPhone 5 as they could be used 'with some modification' in either the iPhone 5C or iPhone 5S. If anything the iPhone 4S won't even show up on their main page but be sold on as stock lasts basis.
     
  7. rh1, Aug 19, 2013
    Last edited: Aug 19, 2013

    rh1 thread starter macrumors member

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    #7
    Yes it won't be cheap. Apple doesn't build and sell to fit 'cheap'. I'm sure there will be many twists to the grade of polycarbonate they are using and all the marketing buzz, but nothing comes close to selling for cheap from Apple.

    Even their lighting USB cables cost £15 despite being cheap!

    The iPhone 4 is £319 at 8GB. The iPhone 4S is £449 at 16GB. If anything this iPhone 5C will be between these two, but closer to the £449 end.

    The Samsung Galaxy S4 Mini retailed for £385, HTC One Mini for £380. If you're hoping for a sub £399 unlocked iPhone 5C, you've clearly misunderstood their pricing structure.

    I'm not in favour of the prices, i'm just a realist. They're not suddenly just going to lax off getting more money.
     
  8. barkomatic macrumors 68040

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    #8
    If the iPhone 5 is discontinued then I think there is a greater chance that it will negatively effect the resale value. We all know that the 5C is essentially an iPhone 5 in a cheap plastic case. However, the general public will perceive the 5C as more advanced and the 5 as being obsolete--much as Dented suggested earlier.

    I think the rumor that the 5 will be discontinued is very credible. I think many people would choose an iPhone 5 over a 5C otherwise. Better product differentiation. Same thing happened with the iPad 3--its value didn't hold up as well.
     
  9. rh1 thread starter macrumors member

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    #9
    I'm about to accept £400 cash in exchange for my iPhone 5 32GB. Well taken care of.

    I asked for £425 i'm going to try and push for £415.
    Reasonable deal?
     
  10. anonymous guy macrumors 6502

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    #10
    I would expect discounts if the current model gets continued. I recall the 16GB and 32GB iPhone 4 getting a price slash when the 8GB iPhone 4 became the baseline model.

    If they discontinue the 16 and 32GB iPhone 5 in favor of 8GB iPhone 5C, I would expect a slight discount as retailers clear stock.
     
  11. Tiger8 macrumors 68020

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    #11
    Probably not, the iPad 3's resale value didn't get affected either way
     
  12. dumastudetto macrumors 68020

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    Aug 28, 2013
    #12
    iPhone 5 won't. But iPhone 4S could become highly desirable when it's discontinued. Hopefully that happens in a couple of weeks. Those of us with a mint condition 4S will hold the last truly portable iPhone at the perfect size with decent specs.
     
  13. 617aircav Suspended

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    #13
    I doubt. There are millions in circulation and will be for many many years to come.
     
  14. Menel macrumors 603

    Menel

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    #14
    This. Im often jealous of girlfriend's 4S.

    Glass and stainless design. Retina. Dual core. HSPA+. The right size. It pretty much ticks all the boxes.

    But its going to be a loooong time. So many in circulation.

    ----------

    It'll probably tank it worse than in the past.

    5S has the al chassis if someone values that aspect.
    5C will have its features and maybe more.

    It certainly wont gain in value, and with 5C replacing....

    6th generation boring reiterated hardware like iPhone5 is not special.

    ----------

    Websites are digital documents. Easily changed.
     
  15. rh1 thread starter macrumors member

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  16. rh1 thread starter macrumors member

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    #16
    Do you think this is still true?
     
  17. Sonisk macrumors member

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    #17
    I actually imagine iPhone 5 prices to go up. It's the same tech that's inside the 5C, and it doesn't have the funky colored plastic-shell. Just my thoughts.
     
  18. Ungibbed macrumors 6502

    Ungibbed

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    #18
    I'd like to think of the 5S possibly gaining value especially if its well taken care of. I have the black/slate model which is now no longer made even in the 5S line.

    I could always use my carriers upgrade plan if I want a 5S really badly, but I may sit and wait. I like my phone and there's not a scratch on it...
     
  19. rh1 thread starter macrumors member

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    #19
    Do you still agree with this, now that the iPhone 5c is £40 higher than my estimate, and still highly priced as I suggested...
     
  20. Apple fanboy macrumors P6

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    #20
    I'm not looking to upgrade, but I would take a new 5c over somebody's second hand 5. But I really don't like to buy anything second hand. Especially phones. People take them in the toilet and all sorts. I don't want that on my face!
     
  21. logicpro7 macrumors 6502a

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    #21
    Haha :D
     
  22. Dented macrumors 6502a

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    #22
    I think we 5 owners have to accept that our phones will now depreciate faster than previous generations that were maintained as current. Partly because of the discontinuation, also the fact that even the 5C (which is taking the 5's rightful price point as older phone) is actually better in at least one significant way, in that it has much broader 4G support.

    And for all the hatred of plastic, Apple's move to "space grey" is a tacit admission that the paint on the black iPhone 5 was a mistake, again helping to lower the perceived value of that model IMO.

    Plus of course, unlike the 4 to 4S comparison, Touch ID on the 5S means there's no way you're going to fool anyone that your used 5 is actually the latest model - one glance at the home button gives its age away.

    Probably best to think of the 5 as now a "limited edition" classic - but be aware potential buyers probably won't agree!
     
  23. Ramio macrumors 6502a

    Ramio

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    #23
    I disagree. Although the iphone 5 is discontinued, it's still supported by Apple for a few years. I personally would pick an iphone 5 over an iphone 5c anyday. Sure, it has broader 4g support but to many, that's irrelevant.
     
  24. d123 macrumors 68000

    d123

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    #24
    Depends where in the world you are, in some countries (like the UK) the 5 will only work on one 4G network, with a chance of partial coverage on a second sometime in the future. It won't ever work on the others which have just launched.
     
  25. Dented macrumors 6502a

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    #25
    Don't get me wrong, I'm not saying it'll be worthless tomorrow. I just think that relative to older iPhones in the past that carried on as current models for years (think of the 3GS that was still on sale a year ago, the 4 or even the 4S now) a used 5 isn't going to maintain value quite so well.

    We may well assume that support will continue for many years, but to a buyer that will never be as concrete as the support on a model they could buy from Apple today.
     

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