Mikey Campbell
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.â€
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 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.
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58 Comments
How much does garbage resale for anyway? Didn't think you get much when just about every Android device is buy-1-get-1 free.
This just goes to show the value inherent in Apple products and how long-term that value lasts.
What was it people were saying about this court decision not even being noticed by the consumer? I think this could be an anomaly, but if this continues going forward then I would say that Samsung will be hurt tremendously by their actions, and the court decision that came from them.
I don't understand why that would happen because of the court case.
I don't understand why that would happen because of the court case.
As the AI article notes, it has to do with the "...uncertainty in upgrading their devices."
Sounds perfectly reasonable to me: buying into both software and hardware updates could be in a state of flux while Samsung sorts out the mess it's got itself into.
[quote name="NoahJ" url="/t/152191/apple-court-win-triggers-drop-in-android-resale-prices#post_2178040"]What was it people were saying about this court decision not even being noticed by the consumer? I think this could be an anomaly, but if this continues going forward then I would say that Samsung will be hurt tremendously by their actions, and the court decision that came from them.[/quote] It's been all over the news so a great many people that had no idea what was going on now know. It could actually turn out to be a blessing in disguise. Someone looking for a cheap alternative from buying a pre-owned iPhone might pick up a Android phone instead. I'd jump at the chance to pick up an international SGS ll for my girlfriend to replace her 3GS that's been acting up as of late.