Apple’s patent victory whacks Android resale prices; Settlers seem to be jumping ship

“While many experts predict Apple Inc.’s court victory over Samsung could shake up the wireless industry over the long term, it’s already having an impact on one key area: the resale market,” Quentin Fottrell reports for MarketWatch.

“Since the $1.05 billion verdict Friday — which found that Samsung infringed on six Apple patents — customers of Samsung have been dumping their Android products on at least one major resale site. Gazelle.com reports a 50% increase in Samsung smartphones over the past three days, which has led to a 10% drop in prices for those devices. ‘Consumers seem to be jumping ship,’ says Anthony Scarsella, chief gadget officer at Gazelle.com. ‘We expect this trend to continue, especially with this latest verdict.'”

MacDailyNews Take: Yes, settlers, it is almost time to buy the real iPhone you always wanted.

Fottrell reports, “Some experts predict prices will continue to drop as Android phones flood the market. The court decision, they point out, is creating a lot of uncertainty about Android upgrades. The next generation of Samsung phones may be very different from those on the market today. Consumers get used to certain key features on their favorite smartphones — like the way apps are laid out or how they zoom in on pictures, experts say. ‘Android customers are no longer sure of that,’ says Yung Trang, president of deal aggregator TechBargains.com.”

“To be sure, even before the ruling Android products didn’t hold their resale value as well as iPhones,” Fottrell reports. “The Samsung S II — which sells for $199 new on a two-year contract, the same as a 16GB iPhone 4S — currently goes for $90 on resale site NextWorth.com. The iPhone, however, sells for as much as $300 on NextWorth; at that price, consumers often make a profit on the subsidized price when they trade up. ‘This will continue to hurt Android resale values,’ said Louis Ramirez, senior features writer on DealNews.com.”

Read more in the full article here.

MacDailyNews Take: Time to pay the piper, slavish copiers.

Related article:
What’s wrong with people who buy iPhone knockoffs? – August 6, 2012

20 Comments

  1. Since the article doesn’t quote a single person who advertised their Samsung phone of NextWorth or Gazelle it’s a little hard to put much stock in their conclusions.

    1. They have the actual DATA from customer transactions, before and after the trial verdict. Why would they need to use something that is subjective and anecdotal, like a quote from an individual person?

  2. If Apple can capture just 51% of the smartphone market but 80% of the industry profits, that would be enough. It will prevent Apple from being labelled as a monopolist. The rest of the marketplace could be allocated as follows:
    Microsoft 20%
    Android 15%
    RIM 14%

    1. It’s unlikely Apple will ever have that high a percentage of market share in even the U.S. market. There are really too many cheapskates that refuse to pay what Apple is asking. Besides, now we have all these carriers where the salespeople are pushing Android smartphones in order to get a bigger paycheck. I’m also rather certain that it’s probably next to impossible for Foxconn to turn out that high a number of iPhones since they’re already having trouble meeting iPhone demand. Foxconn would have to at least double production rates and it would be tough to keep strict quality control.

      In order for Android to have such high market share, they just pump out any old plastic crap at low prices to meet demand. I doubt Apple will ever have more than 30% market share if they keep the same production and profit margin standards. I understand your dream, but I think the reality won’t allow it to happen. I’d love to see Apple spit in Wall Street’s face to prove to them the growth is there, but Apple’s smartphone financial model doesn’t seem to allow those ungodly unit sales.

      What was Google saying about a million activations a day?
      http://news.cnet.com/8301-1035_3-57461870-94/android-activations-reach-1-million-per-day/
      No way Apple can turn out that many iPhones.

      1. Cheapskates? Apple’s phones have some of the highest margins in the business. You could make an argument that they’re overpriced.

        Just because some consumers don’t see the value in the iPhone, doesn’t make them cheapskates. If that were the case, you could call non-Porsche owners cheapskates.

        People have preferences. That’s the way it is.

  3. After reading MDN’s excerpt fro the article, the coclusion seems to be a stretch, people could be upgrading to the new S3. Personally, I would not be caught dead with a Dingdong product!

  4. I’m so sick of the freetard folks. I’m glad their phones aren’t worth crap and people are now dumping them. I have a guy here at work that is so anti-apple, he’s walking around saying “why innovate when you can litigate”. It’s everything I can do not to punch him in the face but really what would the point be, you can’t argue with stupid. (I know someone will say yes you can……)

    Freetards get owned. hahahah

  5. High resale value has always been the “hidden” total cost of ownership benefit for Apple products. When you can get a significant percentage of your initial investment back on the old product, the new product essentially becomes less expensive to own.

    I bought a used iPhone to use with an inexpensive “pre-paid” mobile plan. That works great for my needs, and my old iPhone is still eminently useful. And that’s the key point. Resale value remains high for Apple products for a reason. Apple products stay useful for much longer, compared to the commodity junk products from the competition.

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