๐ Apple’s iPhones Holding their Value Best, where Galaxy’s Line Dropping Value by 27% to 35% in recent months. Investment firm Piper Jaffray has been monitoring Online Auctions for popular Apple and Samsung smartphones since mid-March.
๐ Gazelle.com. In recent years we have been obtaining Firm 30-Day Commitments from Gazelle.com’s web-site. As soon as I hear of Apple sending invitations to the Media, regarding a special Products event, that is my "trigger" to get a Quote from Gazelle. Displayed in this article is a quote received today, August 7th, showing a firm commitment offer at: $320 for my AT&T 65GB iPhone 5 in Good Condition, for Excellent condition the offer is: $340.
๐ Gazelle.com. Notice another image of a Gazelle April, 2011 purchase of my 64GB iPad for $510 providing cash for my upgrade to the next iPad version. eBay may have provided $25 more or less, however that takes time and risk. With Gazelle.com we receive a Commitment, subject to only 2 conditions, (A) is the Condition as I claimed, and (B) the item must be sent to Gazelle.com within 30 days of the date of their Quote.
๐ Every week, analyst Gene Munster and his team look at the last 50 phones sold to determine a fair value for each. Their data found that an Apple three-year-old iPhone gained 10.3% in resale value on eBay since April. The iPhone 4S dropped by 11.8%, while the iPhone 5 slipped only 3.7%, over the past 2-months.
๐ During the same 2-month span, eBay prices of Samsung’s Galaxy S III fell 27%, while the Galaxy Note II was off 35%.
๐ Piper Jaffray’s team also tracks the resale values of smartphones on the bidding-site Taobao in China. At Taobao the iPhone-4 also grew in value since April by 1.4%, while the iPhone 4S was off 14%, and the iPhone 5 fell 7.2%. The resale value of Apple’s iPhone 4 has grown in both the U.S. and China since April, according to data from investment firm Piper Jaffray.
๐ According to Piper Jaffray’s analyst Gene Munster, the index is "a pulse on what consumers are willing to pay for unsubsidized phones in the US. The key takeaway from this 8 weeks of data, is the iPhone is holding significantly more of its value compared to the top two Galaxy smartphones.
๐ Despite the iPhone being 46% more expensive than the Galaxy S III, Apple’s latest iPhone 5 shed 11.2% of its value compared to 13.7% for the Samsung smartphone.
๐ Interestingly, the highest performing handsets in the focused study was the iPhone 4S, which managed to lose only 7% of its value over the two month period. Coming in second was the iPhone 4, which lost 8.8%, followed by the iPhone 5. Median iPhone 4S pricing went from $349 in March to $312 in May, while the iPhone 5 fell to $465 from $535 over the same period.
๐ Samsung’s Galaxy S III and Galaxy Note II were the biggest losers. The Galaxy S3 dropping 13.7% and the Galaxy Note 2 dropping 15%. Median pricing for the Galaxy S3 fell $40 to $320 from $360 over the eight weeks, and the Galaxy Note 2 dropped $106 from $550 ro $444.
๐ Again in China, Samsung’s smartphones failed to hold the same resale value as Apple’s. The Galaxy S III was down 24%, the Galaxy Note II fell 23%, and the company’s latest flagship Galaxy S4 lost 14% of its sales value.
๐ Munster said the fact that the iPhone 5 is Holding its Value better than the Galaxy S4 in China suggests that there is continuing stronger support for Apple’s flagship device, as compared to the Galaxy line by Samsung. He sees this as important, with Apple "maintaining mind-share in the high-end market."
๐ Munster is also encouraged by the fact that the iPhone 5 isn’t rapidly declining in price, which signals that customers are either waiting for a new model, or leaning toward Samsung’s Galaxy lineup. The second choice "leaning toward Samsun’s Galaxy" seems contradictory, as all of Galaxy’s new models have been already released. The results are consistent with what Piper Jaffray found when it published the results of its first smartphone resale value index in May.
๐ Apple Chief Executive Tim Cook commented on the strong resale value of iPhones during his company’s most recent quarterly earnings conference call. It’s rumored that Apple may begin taking trade-ins on used iPhones at Apple’s retail stores, but Cook declined to confirm whether that plan is actually in the works.
๐ Tim Cook also mentioned that "The residual value of an iPhone stays so high, and there is so much demand for it, and that makes the trade-in programs more lucrative to a win-win from many points of view."
๐ The resale value of iPhone 4 in the U.S. has actually grown by more than 10% since April, a new survey has found, while Samsung’s smartphone lineup can’t command the same used prices as Apple.
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