iPhone 6

The Sinking Value of Your Old iPhone in One Chart

So now that you’ve heard the details about the iPhone 6, you want to get rid of your old iPhone. Join the club. People typically begin flooding used-phone marketplace Gazelle with their soon-to-be-lame iPhones in the month or so before new devices are introduced. This year the number of people attempting to sell an iPhone 5S to Gazelle increased 465 percent from July to August.

This impacts the price that people are going to get, of course. Here’s how much Gazelle was willing to pay for old iPhones, as a percentage of the phone’s value, in the 60 days surrounding the last few iPhone launches:

Gazelle will let you lock in your price now and keep your phone until Oct. 10. That means a 16GB iPhone 5S from Verizon would fetch $285, even though it’s likely to be worth closer to $250 at that point.

This year, Apple’s (AAPL) decision to make phones with bigger screens seems to be having the desired effect on Samsung users. The volume of Samsung sales on Gazelle was up 49 percent this August, compared to the same period last year. The company surveyed Android users and found that about one-third of them intended to buy an iPhone.

Source: http://www.businessweek.com/articles/2014-09-09/the-value-of-old-iphones-is-now-plummeting