When Apple makes its long-awaited foray into the iPhone resale market, experts say, it may force rivals like Gazelle to improve their trade-in deals for customers — in the short-term, at least.
Unconfirmed claims are being made that on September 10 Apple will through its hat into the iPhone resale market giving companies like Gazelle a run for their money. Even though they will be pushing the aspect of doing it for environmental reasons, Apple also has a compelling monetary reason for the new venture. Currently a large number of the current iPhone users are going to resale sites to sell their iPhones to cover the cost of upgrades with contracts that they are interested in purchasing. This common practice is seen more now that the wireless carries themselves are offering trade-in deals.
With Apple’s entry into this market, consumers should see in increase in deals from competitors to keep up with the new competition. This will not likely affect sales on sites such as Ebay and Craigslist, but retailers such as Gazelle and Amazon will have to up the ante to remain in the running. While Apple is not expected to give prices above those found at other resellers, they will however, provide a more convenient method of trade-in. All of the mailing back and forth will be avoided if it can be done directly through Apple which is a big plus to the busy consumers today. One major advantage of an independent trade in company is the grace period they offer between the time you agree to sell the phone and the time you actually relinquish the phone to the company. For example, Gazelle allows a thirty day grace period and offers on average $120 more than Apple is offering for a mint condition iPhone5 and $60 more for the iPhone 4S. It is rumored that Apple will most likely offer more competitive rates when the time comes.
Some companies are worried that with the increase in phones being traded in, a decrease in the amount that will be given for them will occur. Hopefully this will be countered by an increase in the desire for people wanting to purchase used devices and keep trade-in values high. Right now we are just scratching the surface of the resale industry with only about fifteen percent of the smartphone owners actually trading in their unused old phones. We should see a big increase in resale activity in the future. Overall, most companies believe that Apple’s involvement will only increase their sales serving as free publicity. It will make known an option that many people before never considered.