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Apple court win triggers resale price drop for Android, Samsung devices

post #1 of 59
Thread Starter 
The resale market for Android-based smartphones is reportedly suffering from Apple's $1.05 billion patent trial win on Friday, with at least one major resale site seeing a flood of customers dumping their Samsung devices.

According to online electronics resale site Gazelle.com, the amount of people unloading their Samsung handsets jumped 50 percent over the past three days, causing a 10 percent drop in prices for the devices, reports MarketWatch.

Thought to be driving the second-hand sales is Apple's convincing win against the Korean electronics giant, which was found to have violated of six of Apple's design and utility patents.

?Consumers seem to be jumping ship,? said Gazelle.com chief gadget officer Anthony Scarsella. ?We expect this trend to continue, especially with this latest verdict.?

Experts say the recent Apple v. Samsung court decision is creating instability in the Android market as consumers are uncertain about upgrading their devices. Because smartphone users become accustomed to how their device operates, a sudden removal or change in features could put off would-be upgraders.

?Android customers are no longer sure of that,? said president of TechBargains.com Yung Trang, in regard to a stable Android feature set.

Another resale site, NextWorth.com, notes the price drops will add to the already low resale value of Android devices. For example, the Samsung S II sells for the same $199 on contract as the a 16GB iPhone 4S, but currently holds a $90 resale value. In contrast, iPhone 4S sells for as much as $300, allowing NextWorth.com users to make a profit on the carrier-subsidized price.

Price Comparison
Price quotes for Samsung's Galaxy S II and Apple's iPhone 4S. | Source: NextWorth.com


The situation is likely to get worse for Android handset makers, and more specifically Samsung, as Apple is currently going after a sales ban of eight smartphones made by the Korean company.
post #2 of 59

How much does garbage resale for anyway? Didn't think you get much when just about every Android device is buy-1-get-1 free.

 

This just goes to show the value inherent in Apple products and how long-term that value lasts.

post #3 of 59
What was it people were saying about this court decision not even being noticed by the consumer? I think this could be an anomaly, but if this continues going forward then I would say that Samsung will be hurt tremendously by their actions, and the court decision that came from them.
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post #4 of 59
I don't understand why that would happen because of the court case.

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post #5 of 59
Quote:
Originally Posted by SolipsismX View Post

I don't understand why that would happen because of the court case.

As the AI article notes, it has to do with the "...uncertainty in upgrading their devices."

 

Sounds perfectly reasonable to me: buying into both software and hardware updates could be in a state of flux while Samsung sorts out the mess it's got itself into.

post #6 of 59
Quote:
Originally Posted by NoahJ View Post

What was it people were saying about this court decision not even being noticed by the consumer? I think this could be an anomaly, but if this continues going forward then I would say that Samsung will be hurt tremendously by their actions, and the court decision that came from them.

It's been all over the news so a great many people that had no idea what was going on now know. It could actually turn out to be a blessing in disguise. Someone looking for a cheap alternative from buying a pre-owned iPhone might pick up a Android phone instead. I'd jump at the chance to pick up an international SGS ll for my girlfriend to replace her 3GS that's been acting up as of late.
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post #7 of 59
Quote:

a state of flux while Samsung sorts out the mess it's got itself into.

 

and are continuing to dig deeper. Anyone seen this? they don't seem to learn - http://www.cultofmac.com/187428/now-samsung-is-ripping-off-apples-os-x-dock-for-their-windows-8-machines/

post #8 of 59

The problems with your existing Samsung device are probably not made worse by this case: Android ALREADY delivered few (and badly late) software updates to most people.

post #9 of 59
Quote:
Originally Posted by anantksundaram View Post

As the AI article notes, it has to do with the "...uncertainty in upgrading their devices."

Sounds perfectly reasonable to me: buying into both software and hardware updates could be in a state of flux while Samsung sorts out the mess it's got itself into.

But that's been the case with Android-based devices from day one. And it's not like there devices stopped working so were these just back up smartphones or are they planning to buy a new smartphone right away despite the next iPhone is almost a month away from being released. I can see people not buying another Android phone but you tend to keep using such devices until you get another device, not several weeks before.

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"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #10 of 59
Quote:
Originally Posted by SolipsismX View Post

I don't understand why that would happen because of the court case.

I can help with that. The prevailing opinion is that Sammy will have to send out an update to remove the infringing features. Though many Sammy supporters have said things like, "No one buys a phone because of pinch-to-zoom." The fact is that people did not buy Android phones in large numbers until such features were added. And they will most certainly get rid of those phones when they no longer have those features.
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post #11 of 59

I checked Gazelle and a flawless 16GB iPhone 4S on Verizon is $247 and Galaxy S III is $241.  Little misleading of an post...

post #12 of 59

I'm surprised there is any resale value whatsoever for Androids. I thought Android fans were basically throwing them away after 6 months or so to get the next new model. If they are paying $90 they'll need to sell it for at least $130 or so to cover expenses. Who's buying them? 

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post #13 of 59
Quote:
Originally Posted by Brian Ward View Post

I checked Gazelle and a flawless 16GB iPhone 4S on Verizon is $247 and Galaxy S III is $241.  Little misleading of an post...

That's a SGS ll not lll. There was never a version of the SGS ll on vzw.
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"Just because something is deemed the law doesn't make it just" - SolipsismX
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post #14 of 59
Quote:
Originally Posted by mstone View Post

I'm surprised there is any resale value whatsoever for Androids. I thought Android fans were basically throwing them away after 6 months or so to get the next new model. If they are paying $90 they'll need to sell it for at least $130 or so to cover expenses. Who's buying them? 

I've checked in the past and until the Android-based device was under a month old it was pretty damn low. It's amazing how well Apple's products hold their value for CE and also amazing that people by-and-large don't consider the resale value when considering the total cost of ownership.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #15 of 59

Just checked historical sales on eBay.  No notable change in Samsung Galaxy S III pricing... Maybe Gazelle is trying to influence short term resale pricing...

post #16 of 59
Quote:
Originally Posted by Brian Ward View Post

I checked Gazelle and a flawless 16GB iPhone 4S on Verizon is $247 and Galaxy S III is $241.  Little misleading of an post...

 

Samsung is DOOMED! LOL

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post #17 of 59

But why compare the II to the 4S?  The GSII dropped in price a long time ago.  Looking at the newer phone would be a better measure in market reaction since it is still active.  Seems like a fluff post.

post #18 of 59
Quote:
Originally Posted by SolipsismX View Post


But that's been the case with Android-based devices from day one. And it's not like there devices stopped working so were these just back up smartphones or are they planning to buy a new smartphone right away despite the next iPhone is almost a month away from being released. I can see people not buying another Android phone but you tend to keep using such devices until you get another device, not several weeks before.

 

Yeah, it's strange.  It's almost as if people are convinced that using Samsung phones has become illegal.

 

"Mom, you better get rid of your Samsung phone before you get arrested !!"

post #19 of 59
Quote:
Originally Posted by Brian Ward View Post

Just checked historical sales on eBay.  No notable change in Samsung Galaxy S III pricing... Maybe Gazelle is trying to influence short term resale pricing...

I'd like to know where they're resold. I checked ebay and craigslist and there's no noticeable drop in prices nor a great amount of phones available.
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
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post #20 of 59

McFly, Hello,

Isn't the more likely answer that it has nothing to do with the court case but rather people who already wanted to trade in for a new iPhone in 2 weeks?

post #21 of 59

That's not a consumer led move, that's Samsung retailers dumping their phone stocks for some money before they are banned on Sept 20th. They don't want to get left with stuff they have to pay Samsung for that they can't sell!

post #22 of 59

I buy and sell iOS and Android devices all the time, and Android devices are definitely are hot potatoes - can't hold them for very long.  That being said, iPhone's and iPad's are far less desirable in the resell market than they were two years ago.  Apple stands behind their devices way better than the other phone makers, although they reduced their support over the past year.  They used to replace any device for a discount if it is damaged.  Not so much any more, at least it is no longer their policy.

post #23 of 59
Quote:
Originally Posted by dmarcoot View Post

McFly, Hello,
Isn't the more likely answer that it has nothing to do with the court case but rather people who already wanted to trade in for a new iPhone in 2 weeks?

Seems kinda soon to me. Sell now and then what? Be without a phone for more than 3 weeks
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
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"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
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post #24 of 59

This just proves how important Apple's "look and feel" is to consumers.  And this is what happens if you take it away from those Samsung phones.  The Samsung phones may very well be well-made with some specs that exceed that of the iPhone, but without Apple's intuitive interface, no one will want to use them.  So to those who've minimize the importance of Apple's "look and feel" and thought it shouldn't be patented because it has little value, just look at what's happening to those Samsung phones now, after being stripped of Apple's design.

post #25 of 59
Quote:
Originally Posted by anantksundaram View Post

As the AI article notes, it has to do with the "...uncertainty in upgrading their devices."

 

Sounds perfectly reasonable to me: buying into both software and hardware updates could be in a state of flux while Samsung sorts out the mess it's got itself into.

 

I think it's more likely that consumers are dumping them because a lot of people see their smartphones as status symbols. How much "status" is their in owning what has been determined, in a court of law, to be a cheap knockoff of the genuine article. It's like your girlfriend discovering that Gucci bag you gave her was a $75 counterfeit, how long do you think she's going to keep that around after she dumps your ass?

 

But, regardless of that, and whatever the reason is, it does indicate that consumers were paying attention.


Edited by anonymouse - 8/28/12 at 5:52pm
post #26 of 59

It makes sense if you like Samsung products (many people do) and want to upgrade now to a newer model before they become unavailable. Samsung makes, arguably, some of the best Android phones available. Fans of these devices are heading to the stores to upgrade ASAP.

 

I'll bet that's 99% of the bump beyond the normal rate of returns.

post #27 of 59
Quote:
Originally Posted by SolipsismX View Post

I don't understand why that would happen because of the court case.

More like all the press from Samsung's recent court cases made Android Samsung people actually take a look at Apple. Those hawt pics of the new connector are making them dump their current for "The New iPhone" coming to an apple.com near you.
Edited by ChristophB - 8/28/12 at 6:12pm
post #28 of 59
Quote:
Originally Posted by RangerD View Post

It makes sense if you like Samsung products (many people do) and want to upgrade now to a newer model before they become unavailable. Samsung makes, arguably, some of the best Android phones available. Fans of these devices are heading to the stores to upgrade ASAP.

I'll bet that's 99% of the bump beyond the normal rate of returns.

That hypothesis makes the most sense but there is the issue of there not being a bump on eBay or CR, too, which I think would crest in a similar pattern as Gazelle.

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

Reply
post #29 of 59

Wow.  If that's truly happening, that's extraordinary.

post #30 of 59

I had a friend on Facebook last night ask how this would effect his phone - if they were going to recall them or do a software patch to 'fix' them.

Then people started ripping on Apple saying "I don't want Apple to force me to use their stuff!", "Why is Apple going to change my cell phone!?", "Apple shouldn't stop competition like that!", and on, and on...  morons.

I think the average consumer knows just enough to blame Apple for anything.

post #31 of 59
Quote:
Originally Posted by SolipsismX View Post

I don't understand why that would happen because of the court case.

 

Quote:
Originally Posted by SolipsismX View Post


But that's been the case with Android-based devices from day one. And it's not like there devices stopped working so were these just back up smartphones or are they planning to buy a new smartphone right away despite the next iPhone is almost a month away from being released. I can see people not buying another Android phone but you tend to keep using such devices until you get another device, not several weeks before.

 

Yeah, the logic here makes no sense whatsoever.  Sounds like the reseller site trying to get some free pub: "Think iPhones are expensive?  They are!  Buy a non-iPhone! SUPER CHEAP!"

 

I mean, when New Coke came out, people didn't say, "Screw you guys; I'm dumping all my Classic Coke and buying Pepsi!"  They bought Classic Coke to horde.

 

Horrible reasoning skills, but successful marketing ploy, I guess.

post #32 of 59

Even without the recent verdict, people have been waking up to the fact that Android devices only have short-term value, if that. Companies like Samsung and Google need to stop defecating where they eat.

post #33 of 59
Quote:
Originally Posted by SolipsismX View Post

I don't understand why that would happen because of the court case.


Yep, it makes zero sense.  I'm leaning toward sheer coincidence than anything.  Android phones are owned by Fandroids (i.e. iHaters) and would never dump their phones for iOS.  So that excludes them.

The other Android owners are the Joe-Consumer that probably don't really follow the tech news so I don't think they have the mentality of "Oh, it's an Apple clone therefore I will sell my phone then."

It doesn't make sense.  It's not like the phone you have in your hand is suddenly useless now.  No one is going to take it away from you.  I think people are just trying to correlate any kind of activity in this area as being the fault of Apple simply because they can spin it.

post #34 of 59
Quote:
Originally Posted by sflocal View Post


... I think people are just trying to correlate any kind of activity in this area as being the fault of Apple simply because they can spin it.

 

The alternative way to think about it is that it's seen as the fault of Samsung.

post #35 of 59
Quote:
Originally Posted by AppleGreen View Post

Yeah, it's strange.  It's almost as if people are convinced that using Samsung phones has become illegal.

"Mom, you better get rid of your Samsung phone before you get arrested !!"

You may just have nailed it!
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post #36 of 59
Quote:
Originally Posted by RangerD View Post

It makes sense if you like Samsung products (many people do) and want to upgrade now to a newer model before they become unavailable. Samsung makes, arguably, some of the best Android phones available. Fans of these devices are heading to the stores to upgrade ASAP.

I'll bet that's 99% of the bump beyond the normal rate of returns.

I bet you'd think an earthquake was good news too!
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post #37 of 59
Quote:
the Samsung S II sells for the same $199 on contract as the a 16GB iPhone 4S

 

 

Um, what? Not even smaller regional carriers are charging $199 for the S II. $49-$99 is the going price for that model right now, whereas the S III and similar spec'd models like the HTC One X are going for the quoted $199. I know the articles here are going to be slanted, but let's at least try to remain factual.

post #38 of 59
Quote:
Originally Posted by Cpsro View Post

Even without the recent verdict, people have been waking up to the fact that Android devices only have short-term value, if that. Companies like Samsung and Google need to stop defecating where they eat.

 

 

lol is that why everything that comes out of their mouth reeks of crap?

post #39 of 59
Quote:
Originally Posted by AppleInsider View Post

The resale market for Android-based smartphones is reportedly suffering from Apple's $1.05 billion patent trial win on Friday, with at least one major resale site seeing a flood of customers dumping their Samsung devices.
According to online electronics resale site Gazelle.com, the amount of people unloading their Samsung handsets jumped 50 percent over the past three days, causing a 10 percent drop in prices for the devices, reports MarketWatch.
Thought to be driving the second-hand sales is Apple's convincing win against the Korean electronics giant, which was found to have violated of six of Apple's design and utility patents.
?Consumers seem to be jumping ship,? said Gazelle.com chief gadget officer Anthony Scarsella. ?We expect this trend to continue, especially with this latest verdict.?
Experts say the recent Apple v. Samsung court decision is creating instability in the Android market as consumers are uncertain about upgrading their devices. Because smartphone users become accustomed to how their device operates, a sudden removal or change in features could put off would-be upgraders.
?Android customers are no longer sure of that,? said president of TechBargains.com Yung Trang, in regard to a stable Android feature set.
Another resale site, NextWorth.com, notes the price drops will add to the already low resale value of Android devices. For example, the Samsung S II sells for the same $199 on contract as the a 16GB iPhone 4S, but currently holds a $90 resale value. In contrast, iPhone 4S sells for as much as $300, allowing NextWorth.com users to make a profit on the carrier-subsidized price.
Price Comparison
Price quotes for Samsung's Galaxy S II and Apple's iPhone 4S. | Source: NextWorth.com

The situation is likely to get worse for Android handset makers, and more specifically Samsung, as Apple is currently going after a sales ban of eight smartphones made by the Korean company.

 

This actually makes me really happy, and I'm gonna pretend I didn't hear about Android Instability, customers are CLEARLY choosing to do what's right dammit!

 

~EDIT~ ignore the blue text, it's NOT a link, something's broken.


Edited by marcusj0015 - 8/28/12 at 8:57pm
post #40 of 59

Hurry up Fandroids, people are dumping their Android phones like hot potatoes, stolen hot potatoes! You had better dump yours too, before it's too late! Actually, wait a sec, do what you want, I don't give a shit about Fandroids and what they do with their phones, and I certainly have no intentions of giving out any good advice to people that aren't worthy of said advice.

 

This is yet further proof that the historical Samsung loss in court has far reaching consequences. Without mentioning any names, and without patting myself on my own back, a few smart people did predict this a couple of days ago. Unless somebody is a totally brainwashed and hateful Android fanatic, why would any normal, sane person spend their hard earned money on a phone that is made by a disreputable brand? The verdict wasn't just about the monetary penalty, but the psychological factor and the bad PR generated also plays an important part.

 

Maybe the Android phone that you buy today will be banned in the near future! Android phones already have an incredibly short and tragically laughable life span to begin with, but the recent devastating court loss adds a whole new comical dimension to the story. When you add bans and injunctions combined with bad PR to that incredibly short life span, it's very likely that some Android phones will suffer from an extremely premature death.

 

Who wants to own a phone that is synonymous with ripoff and that is a cheap and crappy, inferior copy?

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