With Apple now selling used iPhones, the new phone market may have peaked

“Apple this week started selling refurbished iPhones in the United States through Apple.com,” Tom Mainelli reports for Recode. “Of course, wireless customers have long had the opportunity to buy used iPhones (and other brands) from their carriers and other retailers and online sellers. However, the fact Apple is now offering the devices direct (along with long-available refurbished products such as Macs, iPads, and iPods) is notable. It reflects both the maturing nature of the market and Apple’s desire to put the iPhone into the hands of more budget-constrained smartphone buyers while still making enviable margins.”

“Today, buying a smartphone is a lot like buying a car. If you’ve got the cash, you can pay for the whole thing upfront or you can pay through an installment plan (essentially a loan) or you can sign up for something very akin to a car lease in which you pay a monthly fee and get a new phone roughly every year,” Mainelli reports. “All of the plans effectively shift the cost of buying a new phone around but none really help lower the cost. That’s why the refurbished market is important. While there are fewer options when purchasing a refurbished phone (you typically pay all up front), the savings can be substantial.”

“Most companies that sell refurbished phones closely inspect those phones before reselling, offering what amounts to a certified pre-owned checklist at a used car dealer. One of the advantages of buying refurbished from Apple, however, is they not only certifies the phones but they also install a brand new battery and outer shell,” Mainelli reports. “The new battery piece is huge, as that’s clearly one of the areas of most concern when buying a used device. And by including the new battery (which costs Apple very little), the company ensures the buyer has a good experience for the life of the product.”

Read more in the full article here.

MacDailyNews Take: Buying a refurbished iPhone from Apple is like buying a Certified Pre-Owned BMW. It’s pretty much just like new.

India, especially, should correct their mistake and allow Apple to sell Apple Certified iPhones, too. Consumers everywhere should have access to the world’s best smartphone at accessible prices.

SEE ALSO:
India rejects Apple’s plan to import and sell refurbished iPhones – May 3, 2016

8 Comments

  1. I will glad to buy an refurbish or second hand iPhone if I can get it cheaper than brand new. My grandmother has an iPhone 3GS and I think they just replaced the battery once and that’s it. The phone still working with no problems at all (well, you can’t get updates anymore but she is not so into new trends).

  2. Checked refurbished iPhone 6 and 6s at Apple.com.
    Interesting to note that only the 16gb and 64gb are for sale. Good prices but NO 128gb to damage new phone sales.

    Interesting approach and a nice price point for some consumers wishing to get Apple quality at a lower price point…..

    Time will tell how this works out…..

  3. If the conclusion that the demand for new phones has peaked is based on Apple now selling refurbs, then the writers are clueless hacks.

    Apple has been selling refurbished Macs for decades. All the while, sales of new ones have been going upwards, year after year.

    Most of the Macs I had ever bought were refurbs. A few months after a new model is released, it would start showing up as a refurbished, and the discount is anywhere between 12% and 25% (depending on the age of the model itself). And the only perceivable difference between a new and a refurbished Mac is the box it came in (generic brown, vs. the original white). Other than that, Mac looks and smells absolutely new, with new, never used wires, accessories, booklet, etc. Buying a refurbished Mac directly from Apple is probably the best possible deal one could get on a new Mac.

    1. It’s more likely they’ve timed refurb iPhone availability with already insatiable demand for iPhone 7 Plus compounded by Note 7 flop. Samdroiders wouldn’t likely wait for a backordered 7 Plus, but instead just get a different android model. Refurb to the rescue perhaps.

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