“Why is an old iPhone still worth hundreds of dollars? New research suggests a surprising explanation: hoarding,” Quentin Fottrell reports for MarketWatch.
“More than half of American consumers say they have two or more unused cell phones in their household, according to a new survey released Friday. The trade-in value of all those old gadgets: $34 billion, according to resale site SellCell.com — which has a vested interest in tapping into this possible gold mine,” Fottrell reports. “Old iPhones account for roughly a quarter of that sum. Apple has been able to release a new model every year since 2007 — 85 million phones and $50 billion in revenue — partly because it’s easy and inexpensive for customer to sell their old ones for new models. But clearly large numbers of users never part with their old devices.”
Fottrell reports, “Almost one-in-five of those surveyed say they are just “too lazy” to sell their old devices, the survey found. ”
Read more in the full article here.
MacDailyNews Take: You don’t want to know how many older model iPhones have lying around here. We really ought to get on that…
[Thanks to MacDailyNews Reader “Ellis D.” for the heads up.]
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iPad resales surge over 1000% – October 24, 2012
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I had 5 iphones at one time. 3G 3GS 4 4S 5.
So I said to myself. Ohhhh precious, how can I part ways?
So over a period of morning and lamenting. I started selling my old phones. This in itself has addictive properties. Chash! Cha-Ching.
$90, $170, $275.. Rollin’ I am still holding on to my 4S and 5 though, till the 5s or 6 comes along.
I give them to the kids as iPod touches they never go to waste..
If you reset the iPhone will it actually erase everything? I’d hate to sell to Gazelle.com and unknowingly have my info on it.
There are two types of resets. One will reset your settings to the original condition the iPhone came in, the other will completely wipe out everything on your iPhone and bring it back to the default apps condition.
With iOS 6 and higher, data is encrypted on the iPhone. The hard reset merely removes the encryption key so your data remains hashed in the phone.
I should make that clearer by saying that a hard reset removes your data and encryption key.
Apparently, as of the iPhone 4, the entire phone is encrypted. Inside is a key. When you resent the phone, it deletes the key, and there’s no real way to get the data back.
I researched this. Blogs about erasing the iPhone stop about 2010, with such ideas of a 3 pattern wipe, however silence since then, when iOS 4 came out.
Also, I question the 3 pattern wipe. These are flash chips, we are talking about, not magnetic media. I can’t imagine once all the bits are flipped to zero, there is any residual recoverable information.
A reset is a reset with little to go back to.
I reset my iphone4, it started back up exactly like it did when I first got it, certainly appeared erased to me.
Sent it to Gazelle, got $150 for it, so my 5 cost me $50. Happy
The 5 cost you $50 plus a contract.
Why do people think the cost of a new iPhone, from a telco, is just the downpayment?
Because they are GOING to make that payment over the next two years anyway. For a large number of people without landlines anymore, there’s a couple thousand dollars over the next few years that’s pretty much already spent. Kinda like electricity and, for others, internet service.
For example, two years ago, customer (a) bought an iPhone for full price, zero contract, customer (b) bought an iPhone for a lower price, 2 year contract. Over the last two years, they BOTH paid their bills on time each month. At the end of the two years, customer (b) has paid LESS total as (b) paid a lower price for the phone.
Customer (a) had the _option_ to leave AT&T during that time, but that’s the only benefit. Well, I guess customer (b) also has the option if they pay the contract termination, but that still leads to them paying the balance for the phone that Customer (a) paid up front, so still, it’s a wash.
If you KNOW you’re going to pay your phone bill for the next two years ANYWAY, it doesn’t make sense to not get a contract.
I handed down my original iPhone to my sister. My old 3GS is now used as an iPod for my car.
My son has my 3GS. Daughter has the 4..use them as iPod touches.
We also have a blue iMac DV, 14 inch iBook, 12 inch iBook, 12 inch PowerBook..24 inch iMac..and, I’m happy to report, my new 27 inch iMac gets delivered Monday(finally)!!!
iMac supply problems easing? That Tim Cook is amazing. He should be kept!
Had to have my old 2008 iMac checked out the other day. Asked a salesperson if they had any 27″ Fusion iMacs on hand.
They had a 3.4 i7, 1 TB Fusion with the 680 graphics and 8 GB RAM.
I bought it, the 2008 24″ will go to my oldest son.
I’ve kept mine for posterity, right back to the first gen. They are with my 1985 Mac Plus (Blinky) and Blackbird laptop.
My family’s old ones get used as loaner iPods, and coupled with a Beacon and Dijit, remote controls for the projector and TV setups.
My sister’s gift of her 3GS when she upgraded to a 5 is the only way I can afford one … not the phone, but having only a phone (no data) on a pay-as-you-go. Can’t currently afford being forced into a 3 year contract up here in Canada (min with taxes about $70/month).
Minimum with taxes is $70 you say but I know ppl who pay less than that – what are you looking for in a plan to wind up with $70/month?
Bought my 3GS in June 2009. Just let it sit around after I bought my 4S in October 2010. Finally gave it to a friend of my son June 2012. He used it until a month ago when he bought a new iPhone five. It still works as good as the day I bought it.
4S in 2011
If my calculations are correct, I have a total of… ummm… ZERO iPhones. I’ve been a huge Apple fan and tech for decades but the cost of the phone and its service fees are outrageous. I financed my car for 5 years, I am NOT going to finance a phone for TWO YEARS! Data is data, whether it is voice or images. If so many phones are placing a burden on their cellular towers, it is THEIR PROBLEM. And if that is true, why aren’t my rates in the rural areas lower due to the lower traffic? I’d also like to know why Europe’s mobile rates are less than HALF of the US rates? £30/mo for unlimited everything! For as little as I use my phone, it might be cheaper to buy a UK phone and roam in the US.
I agree with your sentiment, but there are options for phones and data that aren’t as bad as you think.
For a new option, one can buy a VirginMobile iPhone 4 for 349 and voice/data/messaging is 30 dollars a month for 300 minutes a month, 50 for 1000 with plenty of data.
iPhone 3GS’s are out there or 100 dollars, unlocked, and paired with T-Mobile (though Data isn’t fully switched over to iPhone friendly frequencies yet everywhere) plan for 30-50 dollars as well.
And then there are a few MVNO’s that you can use these unlocked iPhones as well.
Why, you ask? Regional monopolies. Most areas of the US have little real competition. Some people get priced-gouged while who can’t afford to be gouged simply get nothing.
http://billmoyers.com/episode/full-show-who’s-widening-america’s-digital-divide/
My wife’s alarm clock a 3GS. My clock an iPhone 4. My office radio and stock tracker a first gen iPad.
wow people are really lazy. I just sold a 2 year old HTC evo for $95. the thing cost me $200 on contract. took me 30 minutes total to find it, list it on ebay, and ship it. That’s paying myself almost $200/hour.
same thing with old iphones – I sell them as soon as the new one comes in. I haven’t paid out of pocket for a new iphone since the 3G.
I’ve sold 2 3GS’s on Ebay and significantly recouped the cost of 2 4S’s. My original iPhone is being hoarded as a future collectible. It’s on display in the dock (that came with it!) on my desk.
In 2007 it was months before I even saw another iPhone out in the wild, and not until the 3G came out that the iPhone became truly popular. I’m hoping there will be a relative scarcity of working original iPhones in 15 or 20 years.
The fist iPhone truly changed the world.
You can sell your iPhone with us at http://www.CashiPhone.com, we offer you a very competitive price and we make sure you enjoy a hassle free transaction 🙂