iPhone 6s resale values remain strong ahead of Apple's expected 'iPhone 7' launch

Posted:
in AAPL Investors
With Apple expected to launch its next-generation iPhone in just a matter of months, a new analysis of the secondary iPhone 6s market has found that the flagship handset sells used for 78 percent of its new price, outperforming the iPhone 6 at the same period.




Analyst Gene Munster of Piper Jaffray has been tracking the resale values of Apple's handsets on eBay for years. At 288 days since launch, the iPhone 6s and 6s Plus retain 78 percent of their retail pricing, compared to 73 percent for the iPhone 6 and 6 Plus at the same period in their product cycle.

Considering that the iPhone 6s resale market is relatively stable, Munster said that's a good sign that Apple's iPhone business remains healthy. He believes market expectations for the "iPhone 7" are low heading into an anticipated September launch, potentially putting Apple in a position to outperform.

Specifically, Munster said that if sales of the "iPhone 7" series are equal to that of the two-year-old iPhone 6, Apple should be in a position to post double-digit growth in the March and June 2017 quarters.

In addition, just four months after launch, Samsung's flagship Galaxy S7 is selling at 71 percent of its retail value. That's underperforming the previous-generation Galaxy S6, which held 74 percent of its retail value at the same period.

Munster also noted that during the last three major iPhone updates --?the 4, 5, and 6 series -- shares of AAPL outperformed the S&P 500 by an average of 14 percent with 12 weeks left until product launch.

With Apple's next iPhone expected to launch by late September, Munster believes we are currently about 12 weeks out from the product's debut.

Piper Jaffray has maintained an "overweight" rating for shares of AAPL, with a price target of $153.

For a rundown of where to trade in your iPhone or iPad and get the most money, see AppleInsider's trade-in guide.

Comments

  • Reply 1 of 8
    TurboPGTTurboPGT Posts: 355member
    It doesn't seem like this matters any more. Who could still be buying their phone outright? >1% of the entire market buys unlocked full retail sucker prices. Carrier subsidies are a thing of the past. The only way to go today is with a financing option that has built-in upgradability and service cost savings. The carriers are not dumb. They want you to use these plans, and thus have structured the entire game to incentivize them. If you are a cost and value minded person, you have to take these offers, or be on the losing end of the deal.

    Come September, I'll get an iPhone 7 from Apple, on AT&T, with no hassle. I'll send them my 6s when I'm ready, also with no hassle. Hardly any money will be out of my pocket to complete this transaction (save for sales tax on the new phone).

    Compared to the way it was years ago to upgrade your iPhone annually, things are a JOY today. No more concern for hundreds of dollars out of pocket / in limbo, waiting for an Ebay sale, minus Ebay fees, minus PayPal fees. Bleh.
    edited July 2016
  • Reply 2 of 8
    radarthekatradarthekat Posts: 3,091moderator
    Resale value, never factored in by the majority of pundits and analysts, who remain fixated on the masses of lower priced android junk they claim gives Android some advantage, but really represent meaningless market share.  A feeder market for the iPhone.
    cornchip
  • Reply 3 of 8
    ericthehalfbeeericthehalfbee Posts: 4,076member
    Of course it is. The 6S was the single biggest hardware upgrade in the history of the iPhone. This phone will still be fast by the time we hit iOS 13.
    cornchip
  • Reply 4 of 8
    lkrupplkrupp Posts: 7,146member
    Resale value, never factored in by the majority of pundits and analysts, who remain fixated on the masses of lower priced android junk they claim gives Android some advantage, but really represent meaningless market share.  A feeder market for the iPhone.

    The cardinal rule of Wall Street has always been cheap+volume always wins. Apple has never played by that rule and that’s why Wall Street is done with AAPL. Now comes the iPhone 7 and the financial pundits are once more dancing the “Apple is Doomed” foxtrot. One cadre predicts dismal sales while another, like Munster, predict good sales.
  • Reply 5 of 8
    smiffy31smiffy31 Posts: 177member
    Of course it is. The 6S was the single biggest hardware upgrade in the history of the iPhone. This phone will still be fast by the time we hit iOS 13.
    It appears that the 6S if faster than the new soon to be released mega Nexus, from the leaked benchmark scores (in single core only of course).
  • Reply 6 of 8
    slprescottslprescott Posts: 752member
    $153 would be wonderful... but seems very unrealistic given Wall Street behavior the past ~ 2 years.
  • Reply 7 of 8
    gizmosfgizmosf Posts: 8member
    Anecdotally speaking most people won't upgrade now for at least 3 years because the good carriers AT&T and Verizon won't pay for the subsidy anymore.I know the regulars will jump my shit by saying So APPL getting to 150+ on the strenghs of the iPhone are long gone.  :smile: 
  • Reply 8 of 8
    cornchipcornchip Posts: 1,333member
    iPhone prices always remain high. You still can't get a 5S for under $200 unless it's a 16GB. 
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