PORTLAND, Ore., Oct. 3, 2013 /PRNewswire/ -- Flipsy.com reports that despite highly-competitive iPhone trade-in programs offered by such notable buyback vendors as Apple, Wal-Mart, Best Buy and Amazon, iPhone trade-in values have fallen by 30 percent in recent weeks. The leading iPhone trade-in price comparison service also predicts greater price drops due to the popularity of the recently-introduced iPhone 5S and 5C models.
Just two weeks ago, a used 16GB iPhone 4 could easily be sold to a Flipsy.com buyback vendor for $120. Now, the best offer is $95. A 16GB iPhone 5 would have gone for as much as $385 in early September 2013, but now it would net $325 at best, a difference of $60.
The iPhone price drop trend is perhaps surprising to many, given stiff competition between several high-profile trade-in programs. Companies such as Apple, Wal-Mart, Best Buy, Amazon and others have a vested interest in providing excellent value for iPhone trade-ins. This is because they are not only able to sell the used devices for a profit, but also because users must apply their trade-in values toward the purchases of new iPhones - which keeps customers in-house. The simplest explanation for high trade-in value expectations is that the company that can attract the most trade-ins will be the company with the most long-term customers.
However, simple supply and demand economics have driven down iPhone trade-in values. The more used iPhones on the market, the greater the supply. When the supply outpaces the demand, value drops. Moreover, surging sales for the iPhone's latest models - the 5S and 5C - will lead to even greater trade-in value reductions, says Flipsy.com. This is because competitive price points - starting at $199 and $99 with contracts, respectively - means consumers would prefer to purchase a new iPhone versus a used iPhone at a comparable price. In order for used iPhones to have a market, they must be able to be purchased at lower prices than newer, technologically-advanced iPhone models.
The used iPhone market does offer advantages, however. For example, customers might favor spending less for 64GB or 32GB used iPhone models than they would for new 16GB models. Still, the trend toward falling trade-in values is expected to continue.
"At Flipsy.com, we continually monitor the used iPhone market and report real-time pricing data from dozens of buyback vendors and trade-in programs. From the consumer's perspective, it's rapidly becoming a buyer's market as used iPhones flood the marketplace. If you're in the market for a used iPhone, you might want to bide your time for a lower price. As a seller, however, now is the time to cash in while values are still high," Said Flipsy.com CTO Morgan MacArthur. "Professional resellers who sell on Ebay, Amazon.com, Craigslist and other services should check prices daily. Flipsy.com is a one-stop reference for accurate market-driven data and real-time prices for iPhone trade-in programs, buyback vendors and private party sales."
For more information, visit www.flipsy.com.
Flipsy.com is the fastest and easiest way for consumers to sell used iPhones, iPads, video game consoles and books for the best possible price. The service instantly compares buy back offers from multiple vendors, lets customers sign up for price alerts and compare trade-in values versus private party sale values. Users can sell used devices to vendors or name their own prices in the Flipsy.com marketplace.