But what if I told you that waiting to get rid of it after the release would be a huge mistake – and that you should already be locking down a good rate for your old iPhone as soon as possible?
New data suggests that instead of waiting to sell your old iPhone, you should actually be locking in a higher sell price BEFORE the launch — and then using the proceeds to help fund the cost of your new iPhone.
Here’s how we know this is true. A few weeks ago, I examined hundreds of used iPhone sales on our uSell.com platform following the 2012 iPhone 5 launch, and aggregated this price depreciation data. What I found was interesting. Old phones lose a great deal of value each week after the new iPhone launch – starting at just 7 days after the new product is announced:
* 1 week after a new iPhone launch, old iPhones lose about 5% in value.
* 2 weeks after launch, old iPhones depreciate about 12%.
* By weeks 3 and 4, old phones are worth about 20% less.
So really, if you were to wait 3 weeks after the launch to get rid of your old phone, you’d be losing out on a nice chunk of change – because 20% adds up!
If you want to be an even savvier consumer, you could lock in a sale price before the iPhone launch, but then wait to ship your old phone until right after you get your new model. (At uSell.com and other similar sites, we’ll give you 30 days to actually send in your old phone.)
So how much cash are we talking about?
* An iPhone 5 is potentially worth $72 more (compared to 3 weeks after
* An iPhone 4S is worth $46 more
* An iPhone 4 is worth $29 more
So why not take that extra cash and treat yourself to a fancy dinner, a new pair of jeans, or yes, another cool Apple product?
So don’t wait. Go lock in a great price right now!
For more information on this and to get competitive bids your old iPhone, check out uSell.com. As a special bonus for Five Ten Twenty Club readers, use coupon code FALL13 to get an extra $10 on your iPhone sale.
ABOUT THE AUTHOR:
Nik Raman is Chief Operating Officer of uSell.com, an online marketplace that helps you sell your used electronics in 3 minutes or less through a network of professional buyers who competitively bid on your gadgets. Nik is an expert on the used iPhone industry and helps create the user experience for uSell.com‘s smartphone marketplace. Nik’s path in the “re-commerce” industry began as founder of EcoSquid in 2010, an electronics trade-in and recycling aggregator that uSell.com acquired in 2012. He is a graduate of Harvard Business School.