How To Get Apple’s New iPhone For Half Price
Cellphone carriers may not be under as much pressure to offer deals to those who want to upgrade.
September 13, 2017
It’s “iPhoneapalooza 8” time.
Apple AAPL, -0.40% unveiled the 10th-anniversary iPhone Tuesday. Once again, resale sites have reported a surge in trade-ins of old iPhones ahead of the announcement, but they expect trade-in prices to drop in the days after the big event. For now, though, consumers can still lock in high enough prices to earn 50% back on the cost of the new iPhone 8 and 8S by trading in their old gadget and upgrading to a new phone. The 4.7-inch iPhone 8 will cost $699 for 64 gigabytes and 5.5-inch iPhone 8S model will cost $799 for 64GB. (The 5.8-inch iPhone X will start at $999.)
The market has become crowded for old phones in 2017, however. In previous years, it was possible to cover the entire cost by selling an iPhone that was over two years old. The iPhone 8, depending on the carrier, will cost between $30 and $36 a month for 24 months for a 128-gigabyte version. With most offers, it’s possible to sell an old iPhone to a resale site or online retailer for half the cost of the new phone, although you will need to sign a two-year contract.
It’s “iPhoneapalooza 8” time.
Apple AAPL, -0.40% unveiled the 10th-anniversary iPhone Tuesday. Once again, resale sites have reported a surge in trade-ins of old iPhones ahead of the announcement, but they expect trade-in prices to drop in the days after the big event. For now, though, consumers can still lock in high enough prices to earn 50% back on the cost of the new iPhone 8 and 8S by trading in their old gadget and upgrading to a new phone. The 4.7-inch iPhone 8 will cost $699 for 64 gigabytes and 5.5-inch iPhone 8S model will cost $799 for 64GB. (The 5.8-inch iPhone X will start at $999.)
The market has become crowded for old phones in 2017, however. In previous years, it was possible to cover the entire cost by selling an iPhone that was over two years old. The iPhone 8, depending on the carrier, will cost between $30 and $36 a month for 24 months for a 128-gigabyte version. With most offers, it’s possible to sell an old iPhone to a resale site or online retailer for half the cost of the new phone, although you will need to sign a two-year contract.
The resale market is less lucrative this year and, as such, cellphone carriers may not be under as much pressure to offer deals to those who want to upgrade. “We believe it’s unlikely that promotions will top last year’s levels and they could even be less generous,” Walt Piecyk, analyst at BTIG Research, said in a research note. “The key swing factor could be T-Mobile TMUS, -0.08% as AT&T T, +1.45% and VZ, +1.06% ave largely been ignoring Sprint’s promotions.”
The market has become crowded for old phones in 2017, however. In previous years, it was possible to cover the entire cost of the latest version by selling an iPhone that was over two years old.
And note that those who bought an iPhone 7 or 7 Plus last year and still have time left on their current contract would likely have to pay an early termination fee. More than half of people that currently own an iPhone plan typically trade up by the end of the year, according to resale site NextWorth, which obviously has a vested interest in consumers selling their old devices.
Apple has, as usual, released precious few details about the new iPhone 8. It’s rumored that it will release a more expensive 5.8-inch version with wireless charging and, perhaps, facial recognition replacing fingerprint ID, according to Macrumours.com. Some analysts say the premium version could cost as much as $1,000 without a contract. This is expected to be sold alongside the usual 4.7-inch and 5.5-inch version. It will also have a significantly improved camera, analysts predict.
The resale market became more lucrative for consumers with the added competition in recent years with cellphone carriers entering the fray. Get up to $406 on eBay EBA, +1.03% for a 128-gigabyte iPhone 6S, compared with resale sites MobileFlyp ($341), Gazelle ($255), Nextworth ($220) and Glyde ($250), and cellphone carriers AT&T ($205) and T-Mobile ($135). Glyde spokesman Matthew Reardon says there’s typically a 15% decline in pricing for old iPhone models around and after a launch.
But for consumers who have second thoughts about upgrading, some resale sites allow you to hang on to your phone after agreeing to a trade-in deal. NextWorth and Gazelle give customers a 30-day grace period between signing a contract and handing over their phone. (Glyde has no grace period as it’s a peer-to-peer seller.) “Typically we see prices drop by 10% to 20% after Apple releases an iPhone,” said Chase Freeman, a spokesman for Gazelle.
Apple must work harder to convince people to upgrade each year. Apple CEO Tim Cook is hoping the latest fanfare surrounding the 10th-anniversary iPhone will put pressure on Samsung.
As Apple’s new-device releases become more frequent, the company must work harder to convince people to upgrade each year. While the smartphone market is getting saturated in the U.S., the 10th-anniversary $999 “iPhone X” with facial recognition will likely have a big impact. Deloitte predicted that in 2016, consumers would sell outright or trade-in 120 million their smartphones globally, up 50% from the 80 million traded in 2015.
Apple chief executive Tim Cook is hoping that the upgrades and fanfare surrounding the latest iPhone upgrade will put pressure on Samsung. Nearly 35% of Americans say they have an iPhone, a survey of 2,000 people by marketing company Fluent recently found. But members of the public appear divided on whether they would pay $1,000 for the premium iPhone. Mark Moskowitz, equity analyst at Barclays in San Francisco, said Samsung is in pole position to take a bigger share of the premium iPhone market.
Moskowitz says only 18% of potential iPhone buyers are willing to spend $1,000 or more, far less than the 30% or 35% many analysts expect, according to a wireless-subscriber survey conducted by Barclays. “While the device itself seems more evolutionary than revolutionary, we believe this launch represents the return of staunch competition into the premium segment ($700-plus) of the smartphone market following Samsung’s Note 7 debacle last year,” he wrote.
Article Link To MarketWatch:
0 Response to "How To Get Apple’s New iPhone For Half Price"
Post a Comment