Apple relaunches online sales of refurbished iPhones [u]

Posted:
in iPhone edited November 2016
For the first time in years, Apple has begun selling refurbished iPhones from its U.S. online store, giving people a cheaper way of getting into the iPhone ecosystem while still having official warranty support. [Updated with corrections]




At the moment, the company is only selling a few models of the iPhone 6s and 6s Plus. A 16-gigabyte 6s is $449, while an equivalent 6s Plus is $529. A 64-gigabyte 6s Plus is going for $589.

All of the refurbished units are unlocked and SIM-free, with new batteries, outer shells, and one-year warranties. Apple normally sells the 6s and 6s Plus for prices starting at $549 and $649, respectively.

While it may be possible to find cheaper prices from third-party vendors, buyers do run the risk of getting a device with hidden defects, which could lead to expensive repair or replacement costs.

Apple has traditionally resisted selling refurbished iPhones, presumably because the product is its main source of revenue and cheaper used models would undercut the incentive to buy new hardware.

It's not clear what might have changed, but sales of the iPhone 6s line were underwhelming compared with the iPhone 6. The company may be opening refurbs to clear out old inventory faster, simultaneously offering better competition against Android phones.

Update: The article has been corrected to reflect the fact that Apple last sold refurbs with 2008's iPhone 3G.
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Comments

  • Reply 1 of 21
    or it is a mark to show that they can grow profits by growing the members of the ecosystem
    1) services now are profitable... they are not 'covering costs', profitable over the life of a 'discounted' device enough to justify 'discounting the razor to get people to buy the blades'
    2) getting a $400 iPhone in 2016 significantly improves the possibility of that customer buying a $600 iPhone in 2018.
    3) These phones sold in the U.S. will grey market into India and other countries not allowing refurb phone sales, driving demand for 1 and 2.
    mike1kamiltonpscooter63watto_cobra
  • Reply 2 of 21
    ...I've always bought lightly used late-ish model phones as I really don't use them much, and for environmental reasons... Now I can buy them from Apple they will only gain revenue they never lost from me...
    schlackwatto_cobra
  • Reply 3 of 21
    I think this is just a way to fill in iPhone sales that are sagging and try to keep marketshare. It's not like Apple did not know there was money in the used iPhone market. It's an act of desperation if you ask me.
    sirlance99perkedel
  • Reply 4 of 21
    PharrisPharris Posts: 1unconfirmed, member
    Absolute poppycock. The original iPhones were available on the refurbished site back in 2007, a month or so after the 4gb iPhone was discontinued. I bought a great many of them refurbished. THe practice stopped I believe when the 3G came out, but this is absolutely NOT the first time iPhones were available on the refurb store.
    schlackindiekiduksmiffy31coolfactor
  • Reply 5 of 21
    Pharris said:
    Absolute poppycock. The original iPhones were available on the refurbished site back in 2007, a month or so after the 4gb iPhone was discontinued. I bought a great many of them refurbished. THe practice stopped I believe when the 3G came out, but this is absolutely NOT the first time iPhones were available on the refurb store.

    yeh well they copied the macrumors article without fact checking (or simply reading the comments there where people said the same thing!)
    coolfactorrhinotuff
  • Reply 6 of 21
    dysamoriadysamoria Posts: 3,430member
    How do you RE-launch something for the very first time?
    thrangcoolfactorchiarhinotuffperkedel
  • Reply 7 of 21
    coolfactorcoolfactor Posts: 1,938member
    Glad to see the article corrected, but what's with this title?

    Apple relaunches first-ever online sales of refurbished iPhones [u]

    "relaunches" + "first-ever"

    Isn't that contradictory?
    edited November 2016 rhinotuffVernonDozierperkedeldysamoria
  • Reply 8 of 21
    or it is a mark to show that they can grow profits by growing the members of the ecosystem
    1) services now are profitable... they are not 'covering costs', profitable over the life of a 'discounted' device enough to justify 'discounting the razor to get people to buy the blades'
    2) getting a $400 iPhone in 2016 significantly improves the possibility of that customer buying a $600 iPhone in 2018.
    3) These phones sold in the U.S. will grey market into India and other countries not allowing refurb phone sales, driving demand for 1 and 2.

    Actually, I think this is for a segment of customers that you kinda like; but they aren't necessarily your "favorite".  

    Used devices are perfect for Ex girlfriends, former husbands, the attorney in the office whom lost a legal battle..  call them "Tim Cook Certified" and watch them fly off the shelf. 
    edited November 2016
  • Reply 9 of 21
    dysamoria said:
    How do you RE-launch something for the very first time?
    Just give it a marketing budget.  Remember "New Coke"? 
  • Reply 10 of 21
    lukeilukei Posts: 373member
    Surely these are the IPhone6S series phones coming in via the monthly 'get a new iPhone every year' payment plan?
    jvmbwatto_cobraargonaut
  • Reply 11 of 21
    slurpyslurpy Posts: 5,362member
    bobroo said:
    I think this is just a way to fill in iPhone sales that are sagging and try to keep marketshare. It's not like Apple did not know there was money in the used iPhone market. It's an act of desperation if you ask me.
    What a fucking pathetic troll post. I guess Apple is acting out of "desperation" in ALL of its other product line, and has been forever, since the refurb store for all its Mac and iPad products has been online? Right. 
    pscooter63chiawatto_cobra
  • Reply 12 of 21
    jvmbjvmb Posts: 59member
    lukei said:
    Surely these are the IPhone6S series phones coming in via the monthly 'get a new iPhone every year' payment plan?
    It could also be surplus inventory of 16 and 64 GB phones now that they switched to 32 and 128 GB. 
  • Reply 13 of 21
    Pull them into the ecosystem by all paths.  It's just fine.  
    watto_cobra
  • Reply 14 of 21
    I guess this is US only. Would love for this to come to Canada. Mr. Cook are you listening?
    watto_cobra
  • Reply 15 of 21
    slurpy said:
    bobroo said:
    I think this is just a way to fill in iPhone sales that are sagging and try to keep marketshare. It's not like Apple did not know there was money in the used iPhone market. It's an act of desperation if you ask me.
    What a fucking pathetic troll post. I guess Apple is acting out of "desperation" in ALL of its other product line, and has been forever, since the refurb store for all its Mac and iPad products has been online? Right. 
    Boy are you jumping to conclusions!

    But on the other hand we do agree that iPhone sales and their customers ain't what they used to be.

    I love fucking pathetic trolls AND their posts!
  • Reply 16 of 21
    bobroo said:
    slurpy said:
    bobroo said:
    I think this is just a way to fill in iPhone sales that are sagging and try to keep marketshare. It's not like Apple did not know there was money in the used iPhone market. It's an act of desperation if you ask me.
    What a fucking pathetic troll post. I guess Apple is acting out of "desperation" in ALL of its other product line, and has been forever, since the refurb store for all its Mac and iPad products has been online? Right. 
    Boy are you jumping to conclusions!

    But on the other hand we do agree that iPhone sales and their customers ain't what they used to be.

    I love fucking pathetic trolls AND their posts!
    Did you quote the wrong post? Your response doesn't really seem to match the quoted text. 

    Back on topic, Apple selling refurbished phones seems like a good idea. If I were in the market I would likely go to them before purchasing through Gazelle or something similar. And as someone above already mentioned, maybe they're moving excess inventory or possibly these are phones turned in on iPhone Upgrade Program. 
  • Reply 17 of 21
    bobroo said:
    slurpy said:
    bobroo said:
    I think this is just a way to fill in iPhone sales that are sagging and try to keep marketshare. It's not like Apple did not know there was money in the used iPhone market. It's an act of desperation if you ask me.
    What a fucking pathetic troll post. I guess Apple is acting out of "desperation" in ALL of its other product line, and has been forever, since the refurb store for all its Mac and iPad products has been online? Right. 
    Boy are you jumping to conclusions!

    But on the other hand we do agree that iPhone sales and their customers ain't what they used to be.

    I love fucking pathetic trolls AND their posts!
    Did you quote the wrong post? Your response doesn't really seem to match the quoted text. 

    Back on topic, Apple selling refurbished phones seems like a good idea. If I were in the market I would likely go to them before purchasing through Gazelle or something similar. And as someone above already mentioned, maybe they're moving excess inventory or possibly these are phones turned in on iPhone Upgrade Program. 
    Or....because iPhone sales have fallen substantially from previous quarters and the "generic" way Apple reports sales results--plain ol' iPhone sales--if they can add-in sales of the refurbed ones; those numbers won't look as blight as they actually are.

    Funny how making money selling refurbed iPhones seemed so unattractive before but now those dollars seems valuable.

    The selling of rehabbed iPhones will not create any new customer demand for them, the choices for purchasing one have always been there. Therefore overall demand for iPhones is still spiraling downward.
  • Reply 18 of 21
    jcs2305jcs2305 Posts: 1,307member
    bobroo said:
    bobroo said:
    slurpy said:
    bobroo said:
    I think this is just a way to fill in iPhone sales that are sagging and try to keep marketshare. It's not like Apple did not know there was money in the used iPhone market. It's an act of desperation if you ask me.
    What a fucking pathetic troll post. I guess Apple is acting out of "desperation" in ALL of its other product line, and has been forever, since the refurb store for all its Mac and iPad products has been online? Right. 
    Boy are you jumping to conclusions!

    But on the other hand we do agree that iPhone sales and their customers ain't what they used to be.

    I love fucking pathetic trolls AND their posts!
    Did you quote the wrong post? Your response doesn't really seem to match the quoted text. 

    Back on topic, Apple selling refurbished phones seems like a good idea. If I were in the market I would likely go to them before purchasing through Gazelle or something similar. And as someone above already mentioned, maybe they're moving excess inventory or possibly these are phones turned in on iPhone Upgrade Program. 
    Or....because iPhone sales have fallen substantially from previous quarters and the "generic" way Apple reports sales results--plain ol' iPhone sales--if they can add-in sales of the refurbed ones; those numbers won't look as blight as they actually are.

    Funny how making money selling refurbed iPhones seemed so unattractive before but now those dollars seems valuable.

    The selling of rehabbed iPhones will not create any new customer demand for them, the choices for purchasing one have always been there. Therefore overall demand for iPhones is still spiraling downward.
    You are just going to keep gong with this.

    Apple has sold refurbished iPhones in the past so the original point about them being desperate for market share and down sales doesn't make sense. So to your logic they have been desperate since 2008 because that was the first time the decided to do this. 

     Give the doom and gloom sales narrative a break. Also did you actually take notice to the sizes of the iPhones they are selling refurbished  ?  The discontinued 16gb and 64gb models? Doesn't take genius level intellect to figure out they would want to get rid of discontinued models. I know it doesn't fit with you're BS comments, but it makes sense. 
  • Reply 19 of 21
    thedbathedba Posts: 685member
    bobroo said:
    I think this is just a way to fill in iPhone sales that are sagging and try to keep marketshare. It's not like Apple did not know there was money in the used iPhone market. It's an act of desperation if you ask me.
    Yep, they will be desperately marching towards 115% of industry profits. 
  • Reply 20 of 21
    Looks like profits and quality (customer retention) driving the decision.

    Any product sold by Apple should have at least 4 years of usability after the sale.  

    That's accomplished by only selling referbs that are consistent with Apples high standards.  Apples referbs really are as good as new, having been repaired and tested by robots.  The referbs are all 64bit and have biometrics built in; 64bit for software/app compatibility, biometrics for Apple Pay support.  Hence the 4 years of usability.

    Fulfilling these criteria didn't exist until now...

    As we've seen with Samsungs' disaster, one mistake and customers will walk away from the brand.

    There is no desperation here, just business smarts.
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