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Tuesday, August 28, 2012, 04:28 pm PT (07:28 pm ET)

Apple court win triggers resale price drop for Android, Samsung devices

The resale market for Android-based smartphones is reportedly suffering from Apple's $1.05 billion patent trial win on Friday, with at least one major resale site seeing a flood of customers dumping their Samsung devices.

According to online electronics resale site Gazelle.com, the amount of people unloading their Samsung handsets jumped 50 percent over the past three days, causing a 10 percent drop in prices for the devices, reports MarketWatch.

Thought to be driving the second-hand sales is Apple's convincing win against the Korean electronics giant, which was found to have violated of six of Apple's design and utility patents.

“Consumers seem to be jumping ship,” said Gazelle.com chief gadget officer Anthony Scarsella. “We expect this trend to continue, especially with this latest verdict.”

Experts say the recent Apple v. Samsung court decision is creating instability in the Android market as consumers are uncertain about upgrading their devices. Because smartphone users become accustomed to how their device operates, a sudden removal or change in features could put off would-be upgraders.

“Android customers are no longer sure of that,” said president of TechBargains.com Yung Trang, in regard to a stable Android feature set.

Another resale site, NextWorth.com, notes the price drops will add to the already low resale value of Android devices. For example, the Samsung S II sells for the same $199 on contract as the a 16GB iPhone 4S, but currently holds a $90 resale value. In contrast, iPhone 4S sells for as much as $300, allowing NextWorth.com users to make a profit on the carrier-subsidized price.

Price Comparison

Price quotes for Samsung's Galaxy S II and Apple's iPhone 4S. | Source: NextWorth.com


The situation is likely to get worse for Android handset makers, and more specifically Samsung, as Apple is currently going after a sales ban of eight smartphones made by the Korean company.