Robust Market for Used iPhones Benefits Users, Carriers, and Apple
AllThingsD reports on new research from Consumer Intelligence Research Partners (CIRP) analyzing the impact of the secondary market for the iPhone, the portion of used iPhones that are resold or given away when users upgrade to the latest models. The survey looked at customers purchasing new iPhones beginning with the iPhone 4S launch last October, finding that 53% of those users had returned their old phones to the secondary market.
Of those old phones being put back onto the secondary market, the survey found that 49% were older iPhones, while 21% were BlackBerry smartphones and 15% were Android devices. Approximately two-thirds of those devices returned to the market were given away, with the remaining third having been sold.
Breakdown of old devices reentering secondary market following new iPhone purchasesAccording to the survey, 87% of those who sold or gave away their old iPhones expected the recipients to activate them for use, which CIRP estimates as representing 11% of carrier activations since last October. That number represents a boon for carriers, who do not have to pay subsidies to Apple on the 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.
And while the strong market for used iPhones may seem like a detriment to Apple given that those users may be purchasing a used device offering no revenue for Apple rather than a new one, CIRP suggests that those low-priced used handsets are a common way to introduce new users to the iPhone ecosystem. That introduction then sets the users up for future purchases of new iPhones and other Apple products.
“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.”
Beyond future hardware sales, the used iPhone market also increases the user base and market for apps and other iTunes Store content, with the device's able to serve more good than if they had been discarded or forgotten in a drawer.
Popular Stories
iOS 18.3 should be released to the public next week, following beta testing since mid-December. While the software update is a relatively minor one, it still includes a handful of new features, changes, and bug fixes for iPhones.
Below, we recap everything new in iOS 18.3.
Notification Summary Changes
Examples of inaccurate Apple Intelligence notification summaries
Apple Intelligence...
Apple is set to release iOS 18.3 next week, bringing further refinements to Apple Intelligence features, a couple of neat new capabilities to iPhone 15 Pro and iPhone 16 devices, and bug fixes.
While not quite as packed with new features as Apple's preceding iOS 18 point releases, iOS 18.3 still introduces capabilities that aim to make your iPhone smarter and more intuitive. Below, we've...
iOS 18.3 is expected to be widely released next week, and that means the first iOS 18.4 beta for iPhones should be just around the corner.
Apple has previously implied that iOS 18.4 will be released in April, as that is when it promised to make Apple Intelligence available in even more languages.
Below, we outline what to expect from iOS 18.4 so far.
Apple Intelligence for Siri
Siri ...
Walmart still does not accept Apple Pay or other NFC payments at its more than 4,600 stores across the U.S., and it stood firm on its reasoning for that today.
A spokesperson for Walmart today informed MacRumors that its position on contactless payments has not changed since we last reached out about the matter in 2022. The big-box retailer said it remains focused on its own convenient...
A new Apple TV is expected to be released later this year. In this article, we recap rumored features and changes for the device.
The next Apple TV will be equipped with Apple's own combined Wi-Fi and Bluetooth chip, according to Bloomberg's Mark Gurman. He said the chip supports Wi-Fi 6E, which would be an upgrade over the current Apple TV's standard Wi-Fi 6 support. Wi-Fi 6E extends the...
Apple provided developers and public beta testers with the release candidate version of iOS 18.3 today, and with it comes release notes confirming what's new. While we knew about several of the features that are in the update, there are some lesser known tweaks and bug fixes.
The update adds new Visual Intelligence features for iPhone 16 models, it tweaks Notification summaries on all...
The upcoming iPhone 17 models that Apple plans to release this year will not feature a smaller Dynamic Island, Apple analyst Ming-Chi Kuo said today.
On social media, he said that he is expecting the size of the Dynamic Island to remain "largely unchanged" across the iPhone 17 lineup. His statement is contrary to prior rumors that we've heard about planned changes for the iPhone 17 models.
...
Apple's retail stores will be rolling out "merchandise/floor marketing updates" next week, according to Bloomberg's Mark Gurman.
Gurman did not explicitly say if the store updates are related to any upcoming product announcements, but he did mention that next week is around the time that Apple rolls out its annual Black Unity watch band for the Apple Watch.
In each of the past four years, ...
It's also time for Apple's first product announcement of the year.
Last year, Apple said it would be launching Powerbeats Pro 2 in 2025, and the wireless earbuds are expected to launch very soon.
Powerbeats Pro 2 images found in iOS 18 code
In his Power On newsletter last weekend, Bloomberg's Mark Gurman said the Powerbeats Pro 2 are "due imminently." In addition to Apple filing the...
