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  • Apple's iPhone and iPad retain a Significant Amount of Value over the Competition

    A survey of secondary market pricing for dozens of smartphone and tablet models recently found that the iPhone and iPad carry significant resale premiums over their competitors. Such information is expected to bode well for Apple among customers looking to upgrade to the company’s latest devices.

    Analyst Timothy Acuri of Cowen and Company looked into resale values of 40 different smartphone models and 23 different “premium” tablets released over the last four years. His data found that the iPhone carries an average premium of $128 over competitors while the iPad is on average worth roughly $67 more. Acuri said the following regarding the matter:

    Our data suggests this is largely independent of the duration the product has been on the market, even (3 to 4 years) out when virtually all other competing values have virtually no value. Given an extremely thriving secondary market, this premium is effectively a subsidy for consumers.
    According to Acuri, the data shows that the market places a great value on gaining access to Apple’s hardware and software ecosystem. It also suggests that the reselling of Apple products could become a key driver for product upgrades and could be a key factor in Apple maintaining pricing premiums. There are already a number of online companies such as Gazelle, NextWorth, uSell, Amazon and eBay that offer cash or gift cards in return for trade-ins of Apple products.

    Although trade-in services offer a quick convenience, Acuri noted that listing products on eBay or Craigslist will unsurprisingly yield the highest return on electronics, given the lack of an intermediary party.

    Source: Cowen and Company via AppleInsider
    This article was originally published in forum thread: Apple's iPhone and iPad retain a Significant Amount of Value over the Competition started by Akshay Masand View original post