Apple launched 4 new iPhone 16 fashions in September 2024. Whereas the announcement, hype, and launch occurred simply as customers and gamers within the cell trade have come to count on, what occurred subsequent within the secondary market was one thing of a shock.
| Mannequin | Capacities | MSRP |
| iPhone 16 | 128 / 256 / 512 GB | $799 / $899 / $1099 |
| iPhone 16 Plus | 128 / 256 / 512 GB | $899 / $999 / $1199 |
| iPhone 16 Professional | 128 / 256 / 512 GB / 1 TB | $999 / $1099 / $1299 / $1499 |
| iPhone 16 Professional Max | 256 / 512 GB / 1 TB | $1199 / $1399 / $1599 |
iPhone 16: Secondary Market Efficiency
Barely a month after its launch, purchaser’s regret kicked in for the iPhone 16 and returned units started flowing by B-Inventory’s B2B on-line public sale resale channel. Whereas the timing for this early wave of returns has been roughly according to prior years, the pricing is actually not. Normally, B2B bulk transactions don’t strategy retail costs, however within the case of the iPhone 16 sequence units, the secondary market costs are surpassing retail. Within the first spherical of auctions, which have been for bulk portions of the iPhone 16 Professional, pricing per unit fetched above retail.
Whereas this phenomenon isn’t unprecedented—we noticed one thing related occur with the iPhone 12 shortly after launch—it’s actually uncommon and value exploring.
One month post-release, a practical and cosmetically sound, latest-generation iPhone usually fetches 82-89% of the unique retail value; this time the iPhone 16 variants offered for 101.5% of retail value. Particularly, the common value per unit was $1,016 (in contrast with $999 retail). How may this occur?
Why would B2B secondary market costs be larger than retail?
There are a couple of totally different potentialities:
Greater Costs in Greater-MSRP Areas
New iPhone 16s might be in any other case unavailable in sure configurations and sure areas. For instance: a majority of those units will find yourself exterior of the US. The telephones are offered into geographies with larger MSRPs from Apple like Asia, South America, and the Center East, in addition to areas during which provide from the OEM can’t sustain with demand.
Resellers Take Upfront Losses to Safe Rewards & Upsells
A portion of those units will even keep home: along with bodily digital/cellular phone resale shops, these units will get offered on e-commerce platforms like eBay. In lots of instances {the marketplace} might run promotions or provide incentives to sellers with this stock in order that their website can change into a vacation spot for consumers on the lookout for the most recent tech, so the vendor is prepared to pay the next value. Alongside these traces, small mother and pop retailers or carriers are sometimes prepared to take a loss on {hardware} in alternate for promoting a plan or ancillary service like insurance coverage.
Regional Tax Variations
Gross sales tax arbitrage additionally comes into play given the excessive value of those new fashions—there could also be cash to be made for sellers prepared to purchase and promote throughout markets with vital pricing and tax variations.
What else are we seeing within the iPhone secondary market?
With cell trade-in charges considerably down and longer improve cycles, demand and pricing for used iPhones on the secondary market are up. Here’s a fast snapshot of a few of the different developments we’re seeing:
- Round 50 million iPhone 12 units are getting into the improve window, and Apple is showcasing iPhone 16s’ enhancements by benchmarking its CPU, GPU, and digicam efficiency towards the iPhone 12 sequence. The OEM additionally known as out iPhone 12 sequence customers may commerce in to safe $800-1,000 in credit score towards an iPhone 16 variant
- Used pricing for iPhone 12 is holding robust: the generations to return out for the reason that 12 launch has given customers few compelling causes to improve, provided that they have been all similar to the iPhone 12 by way of perform and type issue.
- iPhone 13 and iPhone 13 Professional Max are at present the highest two used iPhone fashions offered throughout B-Inventory’s B2B platform.
- Within the combination, used pricing for prime iPhone fashions peaked on the finish of Q2 after which remained constant in Q3. General, pricing has remained excessive as a consequence of an absence of provide from customers holding onto their units for longer.
- Wholesale pricing for the iPhone 15 Professional Max goes for as much as 74% of authentic retail, with little to no depreciation.
- Even with the brand new Apple Intelligence function, the market has tempered its expectations for iPhone 16 gross sales. Right now, no huge improve cycle is anticipated as iPhone fashions 12 by 16 stay largely unchanged.
Need to study extra about B-Inventory’s B2B resale options for trade-in cell phones, wearables, and tablets?
Go to our web site
Prepared to speak to one in all our cell recommerce specialists?
Electronic mail us at [email protected]