The iPhone 16 Is Breaking Pricing Developments In a Stunning Method

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The iPhone 16 Is Breaking Pricing Developments In a Stunning Method


Apple launched 4 new iPhone 16 fashions in September 2024. Whereas the announcement, hype, and launch occurred simply as shoppers and gamers within the cell business 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 means of B-Inventory’s B2B on-line public sale resale channel. Whereas the timing for this early wave of returns has been roughly in keeping with prior years, the pricing is definitely 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 had 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 comparable occur with the iPhone 12 shortly after launch—it’s definitely uncommon and value exploring. 

One month post-release, a practical and cosmetically sound, latest-generation iPhone usually fetches 82-89% of the unique retail worth; this time the iPhone 16 variants bought for 101.5% of retail worth. Particularly, the common worth per unit was $1,016  (in contrast with $999 retail). How might this occur? 

Why would B2B secondary market costs be larger than retail?

There are a number of completely different potentialities:

Larger Costs in Larger-MSRP Areas

New iPhone 16s could possibly be in any other case unavailable in sure configurations and sure places. For instance: a majority of those units will find yourself exterior of the US. The telephones are bought into geographies with larger MSRPs from Apple like Asia, South America, and the Center East, in addition to areas through which provide from the OEM can not sustain with demand.

Resellers Take Upfront Losses to Safe Rewards & Upsells

A portion of those units can even keep home: along with bodily digital/cellphone resale shops, these units will get bought on e-commerce platforms like eBay. In lots of circumstances {the marketplace} might run promotions or supply incentives to sellers with this stock in order that their web site can turn into a vacation spot for patrons on the lookout for the newest tech, so the vendor is keen to pay a better worth. Alongside these traces, small mother and pop retailers or carriers are sometimes keen to take a loss on {hardware} in change for promoting a plan or ancillary service like insurance coverage.

Regional Tax Variations

Gross sales tax arbitrage additionally comes into play given the excessive worth of those new fashions—there could also be cash to be made for sellers keen to purchase and promote throughout markets with important 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 among the different tendencies 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 digital camera efficiency in opposition to the iPhone 12 sequence. The OEM additionally known as out iPhone 12 sequence customers might 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 shoppers few compelling causes to improve, provided that they had been all similar to the iPhone 12 by way of perform and kind issue.
  • iPhone 13 and iPhone 13 Professional Max are at the moment the highest two used iPhone fashions bought 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 resulting from an absence of provide from shoppers holding onto their units for longer.
  • Wholesale pricing for the iPhone 15 Professional Max goes for as much as 74% of unique retail, with little to no depreciation.
  • Even with the brand new Apple Intelligence characteristic, the market has tempered its expectations for iPhone 16 gross sales. Right now, no huge improve cycle is anticipated as iPhone fashions 12 by means of 16 stay principally unchanged.

 

Wish to be taught extra about B-Inventory’s B2B resale options for trade-in cellphones, wearables, and tablets?

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Prepared to speak to one in every of our cell recommerce specialists?

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