Apple win whacks Android resale prices
Used Androids were virtually worthless before. Now it's even worse. Wait until the real target, Google has to pay.
Meanwhile, I just arranged to sell our used iPhones for almost as much as they cost us.
I've had three iPhones. I recouped almost all of their costs.
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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.
Since the $1.05 billion verdict Friday — which found that Samsung infringed on six 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.”
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. 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.
http://www.marketwatch.com/story/apple-win-whacks-android-resale-prices-2012-08-28