iPhone trade-in prices start to slip after iPhone 5 unveiling
According to Scarsella, this year's volume shows a much greater interest in the iPhone 5 than took place last year when Apple introduced the iPhone 4S. "Compared to last year, we generated half a million offers. That's 1,200% over the same day last year," Scarsella said. At one point on Wednesday, Gazelle was buying about 30 used iPhones per minute -- a pace of 1,800 per hour.
"It was crazy," said Scarsella.
Like others in the trade-in business, Scarsella has linked the quote volume increases to a much higher level of interest in purchasing the new iPhone 5 than shown prior to the iPhone 4S on-sale date in October 2011. He stuck to that reasoning today.
Thirty-five percent of the trade-in quotes produced on Wednesday by Gazelle were of various models of the iPhone 4S, which for U.S. consumers meant that they were expecting to pay as much as $849 for the new smartphone.
"Some of these are people who are willing to pay full price for the iPhone 5," Scarsella observed. Those consumers were hoping to use what they earn from the sale of their iPhone 4S to subsidize the full-price purchase of an iPhone 5.
Another possible trend gleaned from Gazelle's data, said Scarsella, was a move away from AT&T: 85% of the iPhone quotes generated yesterday were tied to that U.S. carrier.
The iPhone 5 is the first Apple smartphone to support LTE. In the U.S. Verizon has a huge lead over AT&T in the number of markets where it offers the faster data network.
"Maybe this shows that people are jumping ship from AT&T," said Scarsella.
While prices may continue to slide in the short term -- historically, prices have dropped 20% to 25% once the specifics are known of the next iPhone -- they will level off in the next 30 to 60 days, said Scarsella.
"The iPhone 4 and 4S are in high demand, especially the iPhone 4S," Scarsella said. Foreign markets are particularly eager to get their hands on those two models. There, carriers do not subsidize phone purchases, so consumers must pay full price. Instead of being locked into a contract, they buy pre-paid mobile minutes.
On Friday, shortly after midnight PT, Apple and the three iPhone carriers in the U.S. -- AT&T, Sprint and Verizon -- will begin taking pre-sales orders for the iPhone 5.
The reduced-price iPhone 4S and iPhone 4 are available now at $99 and for free, respectively, at Apple's website.
Gregg Keizer covers Microsoft, security issues, Apple, Web browsers and general technology breaking news for Computerworld. Follow Gregg on Twitter at @gkeizer, on Google+ or subscribe to Gregg's RSS feed . His email address is firstname.lastname@example.org.
- Automakers show off in-vehicle Wi-Fi, new smartphone interfaces
- First-to-market means diddly when it comes to smartwatches
- Apple slates WWDC for June 2-6, sets up ticket lottery
- Nadella to Cook on Office revenue sharing: Drop dead
- Microsoft scraps 'Windows-first' practice, puts Office on iPad before Surface
- iOS tops Android for Web browsing in U.S. and other developed nations
- Microsoft's free OneNote vaults to top of Mac App Store chart
- Apple discounts iPhone 5C 8%-9% in five markets via storage cuts
- Microsoft's OneNote strategy: Battle Evernote, or something bigger?
- Microsoft's new lower-priced Office 365 is 'obvious preface' for iPad suite
Read more about Macintosh in Computerworld's Macintosh Topic Center.
- Why Projects Fail CIOs are expected to deliver more projects that transform business, and do so on time, on budget and with limited resources.
- The New Business Case for Video Conferencing: 7 Real-World Benefits Beyond Cost-Savings This whitepaper provides insight into the value of video conferencing in today's business environment, and how organizations are using visual collaboration to find...
- Gartner Magic Quadrant for Client Management Tools The client management tool market is maturing and evolving to adapt to consumerization, desktop virtualization, and an ongoing need to improve efficiency.
- Audit Ready and Asset Optimized: The Solid Promise of an Intelligent Software Asset Management Solution In this paper Frost & Sullivan examines the benefits of enterprise-grade Software Asset Management solutions, and how these solutions serve as the convergence...
- LIVE EVENT: 5/7, The End of Data Protection As We Know It. Introducing a Next Generation Data Protection Architecture. Traditional backup is going away, but where does this leave end-users?
- On-demand webinar: "Mobility Mayhem: Balancing BYOD with Enterprise Security" Check out this on-demand webinar to hear Sophos senior security expert John Shier deep dive into how BYOD impacts your enterprise security strategy... All Macintosh White Papers | Webcasts