Study: Higher iPhone resale value in US and China suggests strong demand
Fresh data shows Apple's latest iPhone 6 and 6 Plus are reselling at comparatively higher prices than last year's iPhone 5s and 5c models did during the same post-launch period in 2014, suggesting demand for the handset has not waned.
Investment bank PiperJaffray recently studied iPhone resales on eBay in the U.S. and found iPhone 6 and 6 Plus units going for 72 percent of their original retail value some nine months after launch. By contrast, iPhone 5s and 5c sold at a respective 65 percent and 53 percent of retail during the same window last year.
A similar trend was discovered in China, where iPhone 6 and 6 Plus models on sale through online shopping site Taobao went for 73 percent of new retail value eight months after launch. Those statistics compare to 65 percent and 53 percent for iPhone 5s and 5c over the same period, respectively.
In a note to investors, PiperJaffray analyst Gene Munster cautioned that extrapolating iPhone demand from resale value is "not a perfect science," but said the results are an encouraging sign of healthy demand. Munster believes Apple's handset will continue to gain momentum in the high-end smartphone segment despite stiff competition expected to arrive in December.
The analysis bodes well for Apple, which sold a record 35.2 million iPhones in third fiscal quarter of 2014. Apple's larger-screened iPhone 6 and 6 Plus models are have done their share of record smashing since a market debut last September. In the first fiscal quarter of 2015, Apple blew away expectations with 74.5 million iPhone sales, and in the June quarter sold a record 61.2 million units.
PiperJaffray has tracked eBay auctions and Taobao prices for iPhones, as well as a variety of Samsung Galaxy devices, since 2013. To determine a fair value model, the firm tallies up the last 50 phones sold each week and creates a price index by comparing average sale price against new retail value.
Investment bank PiperJaffray recently studied iPhone resales on eBay in the U.S. and found iPhone 6 and 6 Plus units going for 72 percent of their original retail value some nine months after launch. By contrast, iPhone 5s and 5c sold at a respective 65 percent and 53 percent of retail during the same window last year.
A similar trend was discovered in China, where iPhone 6 and 6 Plus models on sale through online shopping site Taobao went for 73 percent of new retail value eight months after launch. Those statistics compare to 65 percent and 53 percent for iPhone 5s and 5c over the same period, respectively.
In a note to investors, PiperJaffray analyst Gene Munster cautioned that extrapolating iPhone demand from resale value is "not a perfect science," but said the results are an encouraging sign of healthy demand. Munster believes Apple's handset will continue to gain momentum in the high-end smartphone segment despite stiff competition expected to arrive in December.
The analysis bodes well for Apple, which sold a record 35.2 million iPhones in third fiscal quarter of 2014. Apple's larger-screened iPhone 6 and 6 Plus models are have done their share of record smashing since a market debut last September. In the first fiscal quarter of 2015, Apple blew away expectations with 74.5 million iPhone sales, and in the June quarter sold a record 61.2 million units.
PiperJaffray has tracked eBay auctions and Taobao prices for iPhones, as well as a variety of Samsung Galaxy devices, since 2013. To determine a fair value model, the firm tallies up the last 50 phones sold each week and creates a price index by comparing average sale price against new retail value.
Comments
but, but... nobody wants a giant screen phone! Guess Apple was dead wrong on that one.
but, but... nobody wants a giant screen phone! Guess Apple was dead wrong on that one.
Congrats! You win tonight's "I like to take things out of context!" award!
Prize: One way trip to my blocklist.
Look at that S5 value; not even a year in and it's lost more than 50%.
What I find most interesting is that, in China, the Samsung Note 4 has a much higher resell value than any of the iPhones. It seems as if it's much more in demand.
Perhaps there is demand for the stylus to write out the Mandarin characters?
Congrats! You win tonight's "I like to take things out of context!" award!
Prize: One way trip to my blocklist.
You are a little late to the party! I blocked him over a year ago.
iPhone 6 is awesome, just saying this analysis seems highly flawed in numerous ways.
Bingo (MattbookAir).
but, but... nobody wants a giant screen phone! Guess Apple was dead wrong on that one.
But but....resale value of 6 is higher than 6+. I guess Apple was dead right.
Nah. Thats a statistical error because so few Note4 are sold in China.
Nah. That's actually right because Note4 are so rare for resale since no one wanted to buy it in the first place. That's why resale value is high.