Study finds Apple's iPhone retains more value than top Galaxy models
Investment bank Piper Jaffray on Tuesday announced the results in its new iPhone resale value index, finding that Apple's iPhone depreciates at a rate less than half that of corresponding Android devices from Samsung.
The inaugural report shared with AppleInsider compared U.S. eBay auction prices for the iPhone 5, iPhone 4S, iPhone 4, Galaxy S III and Galaxy Note II , a method that looks to determine the current consumer climate for Apple's handset.
According to 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 8 weeks of data is that the iPhone is holding slightly more of its value compared to the top two Galaxy phones," Munster wrote.
Despite being 46 percent more expensive than the Galaxy S III, Apple's latest iPhone 5 shed 11.2 percent of its value compared to 13.7 percent for the Samsung smartphone.
Interestingly, the highest performing handset in the focused study was the iPhone 4S, which managed to lose only 7 percent of its value over the two month period. Coming in second was the iPhone 4, which lost 8.8 percent, followed by the iPhone 5. Median iPhone 4S pricing wen from $349 in March to $312 in May, while the iPhone 5 fell to $465 from $535 over the same period.
Samsung's Galaxy S III and Galaxy Note II were the biggest losers, dropping 13.7 percent and 15 percent, respectively. Median pricing for the S III fell to $320 from $360 over the eight weeks, and the Note II moved from $550 ro $444.
As noted in the report, decreased auction pricing for the iPhone would suggest existing owners are expecting a new version, and are flooding the market by selling off their handsets in preparation of a next-gen model. A dip in value could also point to a shift in preference toward the Galaxy lineup.
While a spike in sales has yet to be seen, resale prices are expected to drop as Apple's usual fall iPhone refresh cycle approaches.
"We believe that the iPhone aftermarket price should continue to decrease as we approach an iPhone 5S launch which we expect at the end of the month of September," Munster said.
As for the study's methodology, Piper Jaffray monitored eBay auction prices since March 15, taking weekly looks at the last 50 phones sold to determine a "fair value" for each device.
The inaugural report shared with AppleInsider compared U.S. eBay auction prices for the iPhone 5, iPhone 4S, iPhone 4, Galaxy S III and Galaxy Note II , a method that looks to determine the current consumer climate for Apple's handset.
According to 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 8 weeks of data is that the iPhone is holding slightly more of its value compared to the top two Galaxy phones," Munster wrote.
Despite being 46 percent more expensive than the Galaxy S III, Apple's latest iPhone 5 shed 11.2 percent of its value compared to 13.7 percent for the Samsung smartphone.
Interestingly, the highest performing handset in the focused study was the iPhone 4S, which managed to lose only 7 percent of its value over the two month period. Coming in second was the iPhone 4, which lost 8.8 percent, followed by the iPhone 5. Median iPhone 4S pricing wen from $349 in March to $312 in May, while the iPhone 5 fell to $465 from $535 over the same period.
Samsung's Galaxy S III and Galaxy Note II were the biggest losers, dropping 13.7 percent and 15 percent, respectively. Median pricing for the S III fell to $320 from $360 over the eight weeks, and the Note II moved from $550 ro $444.
As noted in the report, decreased auction pricing for the iPhone would suggest existing owners are expecting a new version, and are flooding the market by selling off their handsets in preparation of a next-gen model. A dip in value could also point to a shift in preference toward the Galaxy lineup.
While a spike in sales has yet to be seen, resale prices are expected to drop as Apple's usual fall iPhone refresh cycle approaches.
"We believe that the iPhone aftermarket price should continue to decrease as we approach an iPhone 5S launch which we expect at the end of the month of September," Munster said.
As for the study's methodology, Piper Jaffray monitored eBay auction prices since March 15, taking weekly looks at the last 50 phones sold to determine a "fair value" for each device.
Comments
Could be this http://www.businessweek.com/news/2013-05-14/hon-hai-posts-net-income-of-nt-16-dot-4-billion-misses-estimates
But I don't trust anything Bloomberg reports these days. Especially now that Fortune caught them lying about Apple last week.
Sadly me thinks that's what passes as a 'study' nowadays.
Quote:
Originally Posted by AppleInsider
Despite being 46 percent more expensive than the Galaxy S III, Apple's latest iPhone 5 shed 11.2 percent of its value compared to 13.7 percent for the Samsung smartphone.
Very clever, using percentages to make it sound like a GS3 owner loses more than an iP5 owner.
Then, later on, the details come out, but worded to make it harder to mentally notice the difference:
Quote:
... the iPhone 5 fell to $465 from $535 ...
... the S III fell to $320 from $360 ...
Using those numbers,
IP5 = $535 - $465 = $70 loss in value over the time period
GS3 = $360 - $320 = $40 loss in value over the time period
The difference is not "despite" the iP5 being more expensive. It's because of it.
Now you're implying the S3 original retail price is $360? :no:
I did that with my original iPhone (at least I don't recall having a dumb phone as a back up, but I may have). I didn't use an iPhone in-between, but if you remember there was no iPhone for sale for a couple months so getting it sold during that dry spell I was able to sell it for more than the $600 I bought it for. I think it was just a couple weeks but it was pretty fought to have internet whilst mobile, even if it was just EDGE.
NasserAE did the same thing but I'm not sure if he had a back up phone in the mean time.
Quote:
Originally Posted by SolipsismX
Now you're implying the S3 original retail price is $360?
You're shaking your head at the wrong person.
I'm using the figures from THEIR article, which is about the loss during an 8 week period.
Don't like the numbers? Talk to the sources..
PS. You're saying the iP5 original retail price is $535?
Mea culpa. Point taken.
He's baaaaaaaaack.......
Quote:
Originally Posted by SolipsismX
I did that with my original iPhone (at least I don't recall having a dumb phone as a back up, but I may have). I didn't use an iPhone in-between, but if you remember there was no iPhone for sale for a couple months so getting it sold during that dry spell I was able to sell it for more than the $600 I bought it for. I think it was just a couple weeks but it was pretty fought to have internet whilst mobile, even if it was just EDGE.
NasserAE did the same thing but I'm not sure if he had a back up phone in the mean time.
Yeah, I remember buying a $20 prepaid AT&T Nokia phone from Walmart and using it with my existing AT&T SIM card while waiting for the iPhone 3G release. Good old days!!
Quote:
Originally Posted by anantksundaram
He's baaaaaaaaack.......
Didn't know I was gone
I just thought that the way the numbers were presented, was extra clever. Whoever wrote the article should get a raise, and/or be in marketing!
A better way to do this "study" would of been if they compared all of the models in the first 8 weeks it was on the market. Then you'll see the iPhone 5 do even better than it did in this comparison.
I can tell you based on personal experience that the LG optimus G I bought back in December for $500 was just sold last month for $300. Meanwhile, an iPhone 5 I bought in March new for $570 with a spare lightning cable was sold this week for $600 without the spare lightning cable and a couple of very small scratches (which were clearly pointed out to the buyer)...
Some luck involved, yes, but still easy to see a superior resale value in the iPhone 5. i've owned every iPhone except the original and all have held their value quite well. (I have to admit though, mine tended to do extra well because I preserved the jailbreaks and carrier unlock hacks which have made my iPhones slightly more desirable than others).
Quote:
Originally Posted by KDarling
Very clever, using percentages to make it sound like a GS3 owner loses more than an iP5 owner.
Then, later on, the details come out, but worded to make it harder to mentally notice the difference:
Using those numbers,
IP5 = $535 - $465 = $70 loss in value over the time period
GS3 = $360 - $320 = $40 loss in value over the time period
The difference is not "despite" the iP5 being more expensive. It's because of it.
Um… Speaking of 'very clever'… like, the way you compared the older S3 to the latest generation iPhone (5) while completely ignoring the more comparable older iPhone models…?
How about comparing equivalent models (based on release history)? e.g. iP4S to the GS3 for example?
IP4S = $349 - $312 = $37 loss in value over the time period
GS4 = $360 - $320 = $40 loss in value over the time period
Your point pretty much fails when you do that.
Apples to apples… More telling will be how the GS4 resale prices hold up when compared to the iP5...
How the **** is a "study" needed for this? It's like saying the sky is blue. It's common knowledge that Apple products- ALL Apple products- retain their value than every single other product from any tech company out there. The anecdotal evidence of doing cursory searches should be more than enough for ANYONE to confirm this. Used iPhone 4 are selling for $250 or more on kijiji, etc- What other phone on the planet from 2010 would sell for that much? I've always gotten the majority of my money back when selling my Apple stuff (laptops) to update to the newest version. Try doing that with any other notebook.
If you got an SGS 3 last year in June for 700 €, you will be happy to sell it for 350€ (after less than a year of it's sales), actually it is selling at about 400 € by now.
Quote:
Originally Posted by diplication
Yeah, but one can still dream...
Big f*cking LOL!