More customers are upgrading to the latest Apple smartphone every year, creating a bigger market for the previous year’s models.
Want a year-old Apple iPhone on the cheap? Your chances of snagging one are now better than ever.
More customers are moving to upgrade their smartphones more quickly, as US wireless carriers transition away from the two-year contract. That’s creating a much bigger resale market for used iPhones that are just a year old, according to data shared with CNET from both eBay and Gazelle.
“I think we’re seeing an underlying trend that upgrade cycles are accelerating,” said Sarah Welch, chief marketing office for Gazelle, a retailer specializing in electronics trade-ins. “There’s much more variation now with how people purchase or lease their phones.”
These statistics, however, don’t mean most people now upgrade every year. In fact, a whole other set of customers now appear to be holding onto their phones for longer, or buying used phones, as the motivation for them to upgrade every two years dies off, Welch said.
So when is the best time to buy or sell a used model?
Representatives from both eBay and Gazelle said that on their sites prices for year-old models face their steepest decline a few weeks before a new iPhone is announced. So, sellers should be warned of that big drop, even if many of them can’t avoid it.
“We’ll see tens of thousands of listings starting to add to our site on a daily basis,” said Hal Lawton, eBay’s senior vice president of North America.
That means the best selection and pricing for older models on the marketplace will likely be from Monday to Wednesday, said Vincent Payen, eBay’s head of consumer selling.
So far, though, the resale market isn’t offering many clues on how successful the new iPhone 6S will be. Still, the off-cycle “S” year, in which Apple adds some features but waits to do a major overhaul the year later, is expected to encourage fewer resales, Payen said.
“Last year, we saw massive, massive activity like we have never seen before,” Payen said. “This year, it’s too early to call.”