Why do Iphones hold their 2nd hand value?

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20175 posts

Uber Geek

#1391385 21-Sep-2015 15:57

Having owned an iphone and Galaxy, I would pick an iphone anyday now over a Galaxy or other android, if money wasn't a factor. It is a fashion icon, and has the cool factor. It's build quality is better, and things just work on it, as it is far more refined. Like Toyota, Apple don't usually release features that are industry leading, but they take something that already exists and perfects it, and it then works. eg the iiphone itself, the fingerprint reader etc.
Apple also support their devices for several years, unlike the Galaxy, which Samsung drops support for . The old models aren't as laggy as old android devices, they have less bugs, they are more stable, you get a lot of free useful apps, which you have to pay extra for on android... the list goes on. iOS can also only be used on iphones, which means that if you need ios, you need an iphone.

Batman

Mad Scientist
29771 posts

Uber Geek

Trusted

Lifetime subscriber

#1391391 21-Sep-2015 16:02

I don't think it's related to that. If people want to pay lots, it's got value. If people don't want to pay a cent you could have the best on the world and it's dirt cheap

GSManiac

489 posts

Ultimate Geek

#1391479 21-Sep-2015 18:37

I just sold my 20 month old iPhone 5s 32gb for $570 on trade me. I keep my phones in 100% pristine order so that helps with the resale.
The fact that knocks off 1/3rd of the price of a new one is awesome.

FlatButt

41 posts

Geek
Inactive user

#1391549 21-Sep-2015 21:10

Finch: **Unsure if this is the correct forum**

Hi guys.

I was reading the 6s Iphone thread and somebody mentioned that they have had their current Iphone for 1 year, and only sold it for $100-$200 less than what they paid.

I seem to remember the same thing happening to me when I had an Iphone (3GS I think) years ago.

Why is it that Iphones can nearly hold their value when selling second hand, but Android phones drop $100's of $$?

Is it simply because Apple is seen as "Premium"?

I don't want this to be Apple V Android, just wondering why Iphones (And maybe all Apple products?) can nearly hold their value, but Android phones cant.

Thanks!

It's my post you read.

Anyway as I said in that post, this year is wildly different. The prices went up significantly earlier in the year, so even though they've dropped because of the 6S's announcement the price to get them new is still higher than what they were at launch 2014 (which is when I purchased mine). Therefore the second hand price is closer to the original launch price than they have been in the past on the verge of a new release.

Had it not been for the price increases, there is NO way I would have sold my 6S Plus for the price I did in the current market. People now would pay that little extra and get a full warranty.

For reference:
64GB 6 Plus at launch: $1,299
64GB 6 Plus at increase: $1,499
64GB 6 Plus at 6S launch: $1,399

1eStar

1604 posts

Uber Geek

#1391552 21-Sep-2015 21:17

I believe it's in the apple marketing model to give an appearance of value. The prices are never discounted for iphones, however if you wait about 2-3 months you can save several hundred dollars on the purchase price of an android flagship. In real terms they cost you about the same.
For example: I keep my phones for a minimum of three years. I bought the flagship iPhone 3GS in 2009 for $1100ish from memory and sold it in 2012 for $350ish. Say real cost $250 per year.
I purchased the flagship Android Galaxy Note 2 in 2012 for around $850 about 2 months after release. I still have it (it has similar specs to the iphone 6+!) and I'm sure it's worth more than $100.
The real cost of a flagship is about the same. It boils down to perceived value.

Finch

2851 posts

Uber Geek

#1391558 21-Sep-2015 21:31

1eStar: I believe it's in the apple marketing model to give an appearance of value. The prices are never discounted for iphones, however if you wait about 2-3 months you can save several hundred dollars on the purchase price of an android flagship. In real terms they cost you about the same.
For example: I keep my phones for a minimum of three years. I bought the flagship iPhone 3GS in 2009 for $1100ish from memory and sold it in 2012 for $350ish. Say real cost $250 per year.
I purchased the flagship Android Galaxy Note 2 in 2012 for around $850 about 2 months after release. I still have it (it has similar specs to the iphone 6+!) and I'm sure it's worth more than $100.
The real cost of a flagship is about the same. It boils down to perceived value.

That must mean you are due for an upgrade this year then, as it was 2012 since you last upgraded ;)

sir1963

3265 posts

Uber Geek

Subscriber

#1391646 22-Sep-2015 07:26

FlatButt:
Finch: **Unsure if this is the correct forum**

Hi guys.

I was reading the 6s Iphone thread and somebody mentioned that they have had their current Iphone for 1 year, and only sold it for $100-$200 less than what they paid.

I seem to remember the same thing happening to me when I had an Iphone (3GS I think) years ago.

Why is it that Iphones can nearly hold their value when selling second hand, but Android phones drop $100's of $$?

Is it simply because Apple is seen as "Premium"?

I don't want this to be Apple V Android, just wondering why Iphones (And maybe all Apple products?) can nearly hold their value, but Android phones cant.

Thanks!
It's my post you read.

Anyway as I said in that post, this year is wildly different. The prices went up significantly earlier in the year, so even though they've dropped because of the 6S's announcement the price to get them new is still higher than what they were at launch 2014 (which is when I purchased mine). Therefore the second hand price is closer to the original launch price than they have been in the past on the verge of a new release.

Had it not been for the price increases, there is NO way I would have sold my 6S Plus for the price I did in the current market. People now would pay that little extra and get a full warranty.

For reference:
64GB 6 Plus at launch: $1,299
64GB 6 Plus at increase: $1,499
64GB 6 Plus at 6S launch: $1,399

Less of a price increase than a NZ$ drop against the $US.

The effect is the same, the cause is very different.

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mrphil

424 posts

Ultimate Geek

#1391667 22-Sep-2015 09:40

isnt it like everything else in this world, its supply and demand

more people want it so it drives up the prices

1eStar

1604 posts

Uber Geek

#1392127 22-Sep-2015 18:30

Finch:
1eStar: I believe it's in the apple marketing model to give an appearance of value. The prices are never discounted for iphones, however if you wait about 2-3 months you can save several hundred dollars on the purchase price of an android flagship. In real terms they cost you about the same.
For example: I keep my phones for a minimum of three years. I bought the flagship iPhone 3GS in 2009 for $1100ish from memory and sold it in 2012 for $350ish. Say real cost $250 per year.
I purchased the flagship Android Galaxy Note 2 in 2012 for around $850 about 2 months after release. I still have it (it has similar specs to the iphone 6+!) and I'm sure it's worth more than $100.
The real cost of a flagship is about the same. It boils down to perceived value.

That must mean you are due for an upgrade this year then, as it was 2012 since you last upgraded ;)

[Checks Calendars ] true. It is time for an upgrade. However if i keep my flagship sailing a bit longer it will start paying me to own it.

nznordi

5 posts

Wannabe Geek

#1392129 22-Sep-2015 18:32

I think the true answer is a little bit of all the above + Apple's marketing strategy to focus on what you can do with the phone / tablet / laptop rather than how much ram / megapixel etc. something has.

We only know how much ram an iPhone has because some poor bugger in their quest for YouTube views was willing to destroy theirs. Every Samsung ad shows Ghz, Ram and whatever great or useless feature is the flavour of the day...

A year down the track, an iPhone5s or 6 still lets you shoot great photos and videos and share them with your friends and back them up etc....

But a year old Samsung is an old hat but their own feature obsession laden ads and comms. People don't want to pay a premium if the manufacturer even thinks it's an old hat.

Whereas my 3 year old iPhone works like a charm, get's new features every year and is BETTER than the day i bought it... (assuming I treated it vaguely with care...)... Hence, it holds its value...

JPNZ

1550 posts

Uber Geek

#1393285 24-Sep-2015 10:31

I personally think its more to do with the fact that apple regulates prices worldwide.. so you cant just go to America and pick one up much cheaper than NZ. Also they don't bulk discount like Samsung/LG/Motorola does so they don't drop in price at all. I think resale value is one of the biggest positives of an iPhone. I mean look at the S6 and S6 edge you can find these under $1000 all the time yet you will never find a new iPhone 6 under $1000 and they are 6 months older

Panasonic 65GZ1000, Onkyo RZ730, Atmos 5.1.2, AppleTV 4K, Nest Mini's, PS5, PS3, MacbookPro, iPad Pro, Apple watch SE2, iPhone 15+

Wade

2225 posts

Uber Geek

#1393314 24-Sep-2015 10:52

JPNZ: I personally think its more to do with the fact that apple regulates prices worldwide.. so you cant just go to America and pick one up much cheaper than NZ. Also they don't bulk discount like Samsung/LG/Motorola does so they don't drop in price at all. I think resale value is one of the biggest positives of an iPhone. I mean look at the S6 and S6 edge you can find these under $1000 all the time yet you will never find a new iPhone 6 under $1000 and they are 6 months older

But that is contradictory, unless you buy an Android upon release and pay the associated "early adopter" tax you pay less and in return it has a reduced resale value where as with iPhone you have an artificially inflated buy-in and in return see a higher resale, it potentially starts to sound like a false economy

JPNZ

1550 posts

Uber Geek

#1393350 24-Sep-2015 11:15

Wade:
But that is contradictory, unless you buy an Android upon release and pay the associated "early adopter" tax you pay less and in return it has a reduced resale value where as with iPhone you have an artificially inflated buy-in and in return see a higher resale, it potentially starts to sound like a false economy

Okay thats your opinion.. Regardless iPhones hold their resale value because they are not discounted every week like sammy and other brands. Apple lists brand new iPhone 5S for $799 yet Noel leeming currently has a brand new Samsung S5 (which is 6 months newer) for $599.

Could also be due partly to that fact that Sammy in particular likes to make 50 different models per year (the throw S*&t against the wall and see what sticks theory) thus there is always a newer model out so older ones depreciate faster? But that doesnt explain all manufacturers?

Panasonic 65GZ1000, Onkyo RZ730, Atmos 5.1.2, AppleTV 4K, Nest Mini's, PS5, PS3, MacbookPro, iPad Pro, Apple watch SE2, iPhone 15+

k14

629 posts

Ultimate Geek

#1393393 24-Sep-2015 11:58

1eStar: I believe it's in the apple marketing model to give an appearance of value. The prices are never discounted for iphones, however if you wait about 2-3 months you can save several hundred dollars on the purchase price of an android flagship. In real terms they cost you about the same.
For example: I keep my phones for a minimum of three years. I bought the flagship iPhone 3GS in 2009 for $1100ish from memory and sold it in 2012 for $350ish. Say real cost $250 per year.
I purchased the flagship Android Galaxy Note 2 in 2012 for around $850 about 2 months after release. I still have it (it has similar specs to the iphone 6+!) and I'm sure it's worth more than $100.
The real cost of a flagship is about the same. It boils down to perceived value.

This...

I realised this when I went from an iPhone 5 to a Nexus 5. Same cost overall but the capital you have tied up in the phone is more with an iPhone. With android the depreciation is down to nearly $0 whereas the iPhone is down to $400-600. But the iPhone costs $400-$600 more (roughly speaking). At the end of the day things end up the same (on a depreciation basis) but the total money you have tied up is higher for an iPhone.

Wade

2225 posts

Uber Geek

#1393452 24-Sep-2015 12:53

JPNZ:
Wade:
But that is contradictory, unless you buy an Android upon release and pay the associated "early adopter" tax you pay less and in return it has a reduced resale value where as with iPhone you have an artificially inflated buy-in and in return see a higher resale, it potentially starts to sound like a false economy

Okay thats your opinion.. Regardless iPhones hold their resale value because they are not discounted every week like sammy and other brands. Apple lists brand new iPhone 5S for $799 yet Noel leeming currently has a brand new Samsung S5 (which is 6 months newer) for $599.

Could also be due partly to that fact that Sammy in particular likes to make 50 different models per year (the throw S*&t against the wall and see what sticks theory) thus there is always a newer model out so older ones depreciate faster? But that doesnt explain all manufacturers?

Just had a quick browse on TM and secondhand 5s, S5, HTC One M8 are all selling for around the $400 pricepoint, so right now the resale is better on an Android :P

I paid I think $1349 for my wife's last iphone (5s 64GB) and sold it for $650 at the 20mth old mark, that's about 30% PA depreciation if i'm not mistaken, nothing to write home about, buying a $1000 android and selling it for $300 sounds so much worse doesn't it, but its all relative

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