It has been reported by AllThingsD regarding a very recent research coming from Consumer Intelligence Research Partners (CIRP) in analyzing the bigest impact from the secondary iPhone market, which this portion of iPhones that are used which are then resold or even given away when users decide to upgrade to a newer model. It was looked at by customers wanting to buy a new iPhone in the beginning with the launch of the iPhone 4S as of last October, which finds that 53% of any users that had decided to return their older phones to the market that is secondary.
Out of those phones that are now old and put back into this secondary market, it was found in the survey that just around 49% were actually older iPhones and 21% of those were BlackBerry smartphones and also 15% were the other devices, Android phones. Just around two-thirds of all of those devices that were returned to the market were not only given away, but the third were remained to be sold.
Old devices breakdown in entering the market over again, right after the iPhone buys
This survey says accordingly that 87% of those who had either gave away or sold their older iPhones had been expecting their recipients to be activating them for personal use, and the CIRP is estimating that it represents 11% of all activations with carriersever since last October. This number is representing a boon for all carriers, who aren’t paying any subsidies for Apple on most of the old, used devices.
The research firm believes that, for every used iPhone that carriers activate, they save around $400. In the fourth quarter of 2011 alone, CIRP figures that secondary-market activations saved AT&T and Verizon between $400 million and $800 million in subsidy costs.
As the market remains strong for most used iPhones, it seems to be like a detriment for Apple with it being a given that users may be buying a used device specifically not giving Apple any revenue, rather than doing so with a new one, it is being suggested by the CIRP that these lower-priced handsets that are used are a very common way to provide users to get into the ecosystem of iPhones at a very low price. This then allows users to be excited and willing to purchase newer iPhones and other Apple products in the future.
“It hurts Apple because it creates competition for new iPhones, which we see in the relatively modest sales of reduced-price iPhone 4 and free iPhone 3G units. But it also benefits the company because used iPhone customers aspire to own the newest and best iPhone, so they are likely future new phone customers. In fact, they are likely new entrants to the Apple ecosystem, who otherwise would not have found a way in.”
And way beyond the future of hardware sales, the iPhone market of used phones, may just increase the user base overall and also the market for applications and other content in the iTunes Store, with the devices being capable of serving alot more good than if the used iPhones had been thrown into their closets, or had been thrown into some place to be forgotten, forever.
On a side note, iPhones when they first came out were hard to get, and expensive, and new users had no choice but to pray the price for that new iPhone. You couldn’t find any used ones. Now that they have been around for awhile, it’s very affordable to get one on a contract, being able to listen to music and such and such, without losing an arm and a leg from the high costs of a brand new iPhone, or even paying the retail price of $800 for the highest end model with the most music. Now with older iPhones being floating around in the used market, it’s much more affordable to be an iPhone user now. But if you still want to go on a prepaid plan, then you can follow this tutorial and you can do just that. In Canada though, the first iPhone was only offered by Rogers, for a supremely high price. Plus the signal strength of Rogers is very poor in this area. So if you wanted the Apple smartphone, you had to pay a price at a time.