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by logfromblammo 3103 days ago
What metrics are you looking at in the used market to support your hypothesis? Could they be explained by a different hypothesis?

I'm still enjoying my 3-year-old non-iPhone, and intend to keep using it until it stops working entirely, whereas my spouse with an iPhone was already voicing suspicion before this announcement that Apple was intentionally slowing their old iPhone through updates, just to provoke an upgrade. With the announcement, I can't fault the reasoning.

How much of the used market for iPhones are devices that had been traded in (because slowed by Apple due to old battery), refurbished by the mobile phone company (probably just to replace the battery and reset it to factory settings), and then resold to people whose older model refurbished iPhone now needs yet another new battery? That generates an additional sale of an entire old iPhone, whereas other phones would only generate a sale of a replacement battery at that time.

I think you would probably have to look at what mobile phone customers are actually using, right now.

2 comments

Refurbished by the mobile phone company? That doesn't occur.

The used market for iPhones on Craigslist is actual users. The market is very strong, and so is the resale value of iPhones. There is one (1) explanation for this: iPhones hold their value better because they are more useful for a longer time.

As an aside, iPhones also remain able to run the latest version of iOS for roughly TWICE as long as Android phones.

There is no competition, here.

The fact that iPhones are updated for the longest time and are built well is directly related to why you can get as much as you can when you sell a used iPhone. Apple actually has an incentive to create the longest lasting iPhone because the economics of the iPhone Upgrade Plan and every carrier upgrade plan depends on it.

That iPhones retain their value over time is a testament to the fact that Apple has not been slowing down old iPhones to make you upgrade (this conspiracy theory predates iOS 10.2.1 by many years).

But I don't intend to sell my non-iPhone, ever. It works as well for me now as it did when I first bought it, so why would I? It's the same reason why I'm never going to sell my 2001 Honda Civic.

Have you examined the reasons why iPhone owners sell their older iPhones, and why people buy refurbished used iPhones?

> That iPhones retain their value over time is a testament to the fact that Apple has not been slowing down old iPhones

Not at all. It's a testament that there is a market for old iPhones, that is all. People are possibly buying used iPhones despite them being slowed down.

> Apple actually has an incentive to create the longest lasting iPhone because the economics of the iPhone Upgrade Plan and every carrier upgrade plan depends on it.

Then why don't they? <5 years for an electronic device that hasn't seen any significant upgrades in later models is absurdly short.

The lower depreciation of an iPhone compared to any comparable smartphone is directly correlated to the quality of the iPhone. This isn't new, anyone who buys used cars understands this. More importantly, it's an independent (of Apple) market that is constantly repricing this. And the results have been clear: iPhones retain their value much better than anything else.

Just as we can use the price of iOS zero-day exploits in the black market as a proxy for how secure iOS has become over the years, we can also look at the resale market for iPhones.

> The lower depreciation of an iPhone compared to any comparable smartphone is directly correlated to the quality of the iPhone

That is not true, nor has it ever been for phones or cars. People buy each for all kinds of reasons: status symbols, ideals, etc. iPhones demonstrably do not retain their value as demonstrated by this battery fiasco.

After-Market value != quality