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

Posted:
in General Discussion edited January 2014
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.
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Comments

  • Reply 1 of 58


    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.

  • Reply 2 of 58
    noahjnoahj Posts: 4,503member
    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.
  • Reply 3 of 58
    solipsismxsolipsismx Posts: 19,566member
    I don't understand why that would happen because of the court case.
  • Reply 4 of 58

    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.

  • Reply 5 of 58
    dasanman69dasanman69 Posts: 12,985member
    noahj wrote: »
    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.
  • Reply 6 of 58
    geoadmgeoadm Posts: 81member

    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/

  • Reply 7 of 58
    nagrommenagromme Posts: 2,834member


    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.

  • Reply 8 of 58
    solipsismxsolipsismx Posts: 19,566member
    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.
  • Reply 9 of 58
    mac voyermac voyer Posts: 1,283member
    solipsismx wrote: »
    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.
  • Reply 10 of 58


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

  • Reply 11 of 58
    mstonemstone Posts: 11,510member


    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? 

  • Reply 12 of 58
    dasanman69dasanman69 Posts: 12,985member
    brian ward wrote: »
    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.
  • Reply 13 of 58
    solipsismxsolipsismx Posts: 19,566member
    mstone wrote: »
    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.
  • Reply 14 of 58


    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...

  • Reply 15 of 58
    SpamSandwichSpamSandwich Posts: 31,490member

    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

  • Reply 16 of 58


    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.

  • Reply 17 of 58

    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 !!"

  • Reply 18 of 58
    dasanman69dasanman69 Posts: 12,985member
    brian ward wrote: »
    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.
  • Reply 19 of 58
    dmarcootdmarcoot Posts: 191member


    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?

  • Reply 20 of 58


    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!

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