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Study shows Android handsets depreciate in value faster than iPhone
The iPhone has always had a robust market for used handsets, with even older models still getting rather good returns for their former owners. Priceonomics has done a study of the used smartphone market and compared the depreciation in resale value for the iPhone versus Android and BlackBerry handsets. Unsurprisingly, the iPhone holds onto its value much better than competing handsets over the same stretch of time. Priceonomics found that after 18 months an iPhone still garnered an average of 53 percent of its original (unsubsidized) price; in other words, you can expect an iPhone that's a year and a half old to fetch around US$300 on the used market. In contrast, Android handsets only held onto 42 percent of their value, and BlackBerry handsets were a close third at 41 percent. The study also found that most Android handsets depreciate much faster than the iPhone; a used iPhone 4S could probably be sold at or near full retail value months after you bought it, but according to Priceonomics an Android handset would have lost "hundreds of dollars in value" over the same time. The study suggests that the iPhone's reputation as a premium brand is part of why it depreciates in value slower than its competitors, but other factors are likely at play as well. One important consideration is that older-model iPhones still enjoy software updates and support from Apple; the iPhone 3GS is quickly approaching its third birthday, but it still runs the latest version of iOS. Contrast that with the situation among Android handsets, where many (if not most) models sold in 2011 will be forever stuck on Android 2.3 or earlier. The sheer breadth of different Android models is probably hurting the resale market as well. Since 2007 there have only been five major iterations of the iPhone, but the same number of Android handsets can come out in a single week, from multiple manufacturers, and with feature sets and names that are difficult for average consumers to sort through. With all that in mind, it's no wonder the used market for iPhones is paralleling the used PC market, where the Mac reigns supreme in resale value.
Best Buy Buy Back becomes official, free through February 12th
Best Buy's gadget repurchase program has become official during the Super Bowl, courtesy of a silly commercial starring Ozzy Osbourne and Justin Bieber. The ad's actually a lot less cringe-inducing than it might have been, though the content of the program still doesn't seem to make much fiscal sense to us. You have to buy into it at the time of purchasing a gadget -- that requirement is set aside until this Saturday as a sort of grace / enticement period -- and Best Buy depreciates at a very aggressive annual rate, arguably cutting more of your trinkets' value than the incumbent options like online auction sites. Skip past the break to see the two gentlemen at opposite ends of their careers selling their souls to the almighty dollar, along with Best Buy's full press release and Buy Back Program details.
Best Buy's Buy Back Program to be made official during the Super Bowl... by Justin Bieber and Ozzy Osbourne
We heard about this during the news avalanche that was CES early last month, but today Best Buy has started making its new Buy Back Program official in emails sent out to valued Reward Zone customers. The gist of the scheme is that Best Buy will offer you set "Buy Back" prices for goods you purchase from its stores, advertising it as a reassurance that your electronics won't depreciate too much during your ownership. The leaked info we saw in January showed that you'll have to pay an extra fee at the point of purchase to enroll into the Program and Best Buy's highest re-purchase offers were capped at 50 percent of the initial price, so don't expect this to be any great favor to you, Mr. Consumer. For more info, keep your eyes locked on the Super Bowl this Sunday, when Justin Bieber and Ozzy Osbourne (no, seriously) will do their best to explicate Best Buy's new venture. [Thanks, Jeff and John]
