Apple's iPhone 5 invite sparks new spike in trade-ins
Tuesday's invitation for Sept. 12 event triples quote volume as consumers look to cash in on old phones
Computerworld - Apple's cryptic invitation on Tuesday to an event set for next week triggered another surge in trade-in activity by consumers wanting to unload older iPhones in time to buy the new model.
Some trade-in companies registered spikes on Tuesday that were as high as 300% above the week before. Apple issued invitations to reporters, bloggers and analysts for a Sept. 12 event that day.
Because the invite features a large number "12" casting a shadow resembling a "5," the expectation is that Apple will roll out a new smartphone called the "iPhone 5" next Wednesday.
"News of the Apple event invitation triggered a lot of activity," said Jeff Trachsel, chief marketing officer at NextWorth, one of several companies that buy used smartphones from consumers. "The number of quotes generated compared to the previous week was up 190%."
Other companies saw an uptick in trade-in activity.
"Tuesday was a pretty interesting day," said Bob Kilinski, the chief marketing officer of CExchange, an electronics trade-in firm that handles programs from 40 brick-and-mortar retailers, mobile carriers and online sources in the U.S. Among its clients: eBay's Instant Sale, Wal-Mart and Radio Shack. "Immediately after the news, we saw a 300% week-over-week jump in the number of people going online to check prices for their current iPhones."
According to Todd Witkemper, a spokesman for online marketplace eBay, quote activity on its Instant Sale website was up 40% Tuesday compared to the same day of the previous week.
The upswing had been expected: In previous Apple product launches, the number of consumers retrieving price quotes for their iPhones and iPads has jumped when news hits that the company has set an event date.
Most of the trade-in vendors, however, anticipate an even bigger day next week, when Apple unveils the iPhone 5 and spells out the new model's hardware specifications and price.
They also again noted that trade-in activity this year has remained much brisker than in 2011, when Apple launched the iPhone 4S.
"It is definitely a lot bigger," said Anthony Scarsella, chief gadget officer at Gazelle, who said that quote activity at his company's website was five times that of 2011 during the same period.
During August, eBay's Instant Sales generated 340% more used iPhone price quotes than the same month last year.
The stronger interest in selling used iPhones this year -- and an earlier surge in appraisal volume than in 2011 -- has prompted trade-in experts to predict that the iPhone 5 will sell like hotcakes. "This will be the biggest iPhone launch ever for Apple," said Scarsella.
"People are not just waiting for this release," added Dan Brauser, CEO of Usell. "They're waiting for it and thinking about it and pushing rumors along even before the release is officially acknowledged by the company."
- Why HTC put Windows on its M8 smartphone
- iPhone 5C's China bust raises questions about Apple's pricing for '14 models
- China scrubs Apple's iPad and MacBooks from government buying list
- Navdy's planned heads-up car display works with iPhone or Android
- Circle the date: Apple's iPhone 6 event slated for Sept. 9
- Stable Mac prices fuel reliable profit engine
- Apple will 'set the world on fire' with iPhone 6 sales
- The other Apple economy: $2B in devices on eBay
- Apple sends users scrambling for OS X Yosemite
- Apple grows Mac sales by 18% on the back of the MacBook Air
- Tips for Driving User Adoption in New Technology Deployment Read this checklist on tips for driving user adoption to see where you stand.
- Securing Mobile App Data - Comparing Containers and App Wrappers Analysts agree that Mobile Device Management (MDM) is not enough when it comes to securing app data. Although it remains a critical component...
- Capabilities You Need in an IP Address Management Solution A mismanaged IP space can cripple an otherwise healthy network. Take a moment to understand what you need in an enterprise-ready IPAM solution.
- IPv6 Fundamentals IPv6 is needed to sustain the growth of the Internet. The transition from IPv4 will require planning and likely some degree of support...
- Accelerate your innovation with IBM Bluemix™ Join us for a webcast introducing the new IBM BluemixTM. IBM Bluemix (www.bluemix.net) is a developer oriented Platform as a Service (PaaS) environment...
- Maximizing Availability for the Modern Data Center Check out this information-packed resource center for help in maximizing the availability of your data center - from overcoming challenges to choosing the... All Smartphones White Papers | Webcasts