This new study shows how iPhones have depreciated this year, see how much your iPhone has lost and what you can do to avoid getting stung on the resale price.
We all know Apple products are not cheap, but how do they hold resale their price and what can we do to ensure they stay a valuable gadget asset. This data report illustrates iPhone depreciation over the past 6 months.
Following the launch of the new iPhone XS and XR devices, it’s clear that Apple’s new iPhone prices are not going down. The XR range was launched as this year’s budget option and still commanded a larger price than last year’s iPhone 8. With Apple’s iPhone unit sales down in the last year, the higher price tag is still keeping the company’s revenue on the rise.
Mac Sources received this interesting data study by BankMyCell, a US iPhone trade-in price comparison site. The focus of the study was primarily aimed at Apple’s most popular phones from the past few years and how their pricing has held up over the past 6 months prior to the September 12th product announcement.
Historic data predicts an iPhone price crash is coming
Every time there has been an Apple product launch from 2007 the buzz surrounding it has been quite considerable. This is mainly down to the anticipation of the fans in social circles and the media frenzy that overwhelms the announcement month.
BankMyCell states that they track the historical pricing data for every phone and store they feature on the comparison website. Based on this aggregated data and from past iPhone releases they have predicted the decline in value that we can expect over the next few months:
The data chart they provided shows the gradual decline from April 2018 into a sharper one via the predicted periods from October-November 2018. These extra months are based on historic pricing trends surrounding iPhone launches and the percentage decline in value. It also suggests that there is a window where you can sell your phone to one of these buyback stores and have 30 days to send it to them. This provides you the ability to freeze the higher quote and avoid the price drop.
Actual figures from their price drop chart:
- iPhone 6S: lost $45 from April-Sept 2018 (20.93 percent)
- iPhone 6S Plus: lost $37 from April-Sept 2018 (14.40 percent)
- iPhone 7: lost $61 from April-Sept 2018 (16.94 percent)
- iPhone 7 Plus: lost $43 from April-Sept 2018 (11.26 percent)
- iPhone 8: lost $46 from April-Sept 2018 (9.49 percent)
- iPhone 8 Plus: lost $57 from April-Sept 2018 (10.18 percent)
- iPhone X: lost $135 from April-Sept 2018 (18.49 percent)
According to the company, back in 2017, the most popular iPhones lost up to 20 percent of their trade-in value in a matter of weeks following the iPhone 8/X announcement. This data was however specifically in online trade-in websites and may not reflect auction and classified add resales.
If you’re thinking of pre-ordering an iPhone XR, these dates would not apply, the device is due for pre-order on 10/19/18 and released on 10/26/18 so you should pick your trade-in timing a little differently.
Why does my iPhone lose its value?
When stores value your phone, two of the key of the criteria they base pricing on is the storage capacity of the iPhone and the network carrier you have.
As you can see from their data, the network carrier has some reasonable influence on the resale price. As of February 11th, 2015, carriers are required by US law to unlock your phone once the contract is paid up. It’s always worth checking with your carrier if you’re eligible to have your device unlocked, it can be done with one simple call to your provider.
There are some physical condition factors that come into play when selling your phone:
- Hardware condition: All of the buttons, audio 3.5mm port, and charge port should work.
- Software condition: The software installed on the iPhone should work as normal.
- Carrier functionality: Broadband and cellular functionality must work.
- Battery condition: The device should charge without the battery malfunctioning
- Screen and frame condition: If your device has cosmetic wear and tear you will no doubt lose some value.
Aside from this, the release of new models and the advancements in functionality, processor speeds, and camera power will make your device worth less. Much like how a car would depreciate through use and updated models.
What the online trade-in market looks like for iPhones
*Figures based on unlocked devices with the largest cell phone storage capacity.
The next set of data sent to us shows the diversity in online pricing, essentially to illustrate why it’s worth comparing prices before selling your iPhone. Based on the company’s data and depending on the store you visit to sell your iPhone you could walk away losing up to $179.
How do you avoid price drops
According to BankMyCell’s press release, these are the steps to take to avoid losing out on the true value of your iPhone.
- Unlock your iPhone: You can earn up to $100 more.
- Protect your iPhone: Make sure it has a good case/screen protector.
- Avoid in-store offers: Typically these are much lower.
- Timing is everything: Sell as close to the new iPhone announcement as possible.
- Compare prices: Don’t get stung with a low offer, do a little browsing.
- eBay is your friend: You can get around 8% more for a little more hassle
Data via BankMyCell
Readers get 10% extra on their iPhone trade-in price with code ELECTRONICS10 – expires 09/30/18