The recently obtained $1 billion win for the iPhone maker in the U.S. Apple vs Samsung trial has all sorts of ripple effects that capture the attention of the media. While Samsung is determined to continue to fight Apple in court despite this “worst scenario” for the South Korean Android device maker, there are side effects that are already felt.
A few days ago we reported that after the verdict was made public, Samsung’s market cap dropped $12 billion. Now we hear that the second-hand smartphone market also has to suffer following the Apple win.
MarketWatch reports that Gazelle.com registered a 50% increase in Samsung smartphones over the past few days, which resulted in a 10% price drop for those devices. Apparently at last some Samsung device buyers are dumping their old devices:
“Consumers seem to be jumping ship,” says Anthony Scarsella, chief gadget officer at Gazelle.com. “We expect this trend to continue, especially with this latest verdict.”
The same phenomenon has been observed at other similar online retailers including TechBargains.com and NextWorth.com:
[…] even before the ruling Android products didn’t hold their resale value as well as iPhones. The Samsung S II — which sells for $199 new on a two-year contract, the same as a 16GB iPhone 4S — currently goes for $90 on resale site NextWorth.com.
It will be interesting to see whether the resale price of Samsung devices will continue to drop, or whether this is just a temporary response from the market, in the wake of the unfavorable verdict Samsung received a few days ago, a verdict that’s determined to fight at all cost.
Have you sold, or are planning to sell an old Samsung device following Apple’s win? How much are you asking for your device?
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That’s ridiculous…. every Samsung product I’ve used, abused, and sold on eBay fetched multiple times the amount I paid for it, subsidized, and I’m expecting my Galaxy Tab 10.1 that I had up for sale prior to the rotten fruit lawsuit to sell just fine…. I gave my Skyrocket away to family, but a friend who paid the standard $200 for his, subsidized, sold it quickly on Craigslist for $320 when I chastised him for not getting at least $400 for it last month! What SGSII sold for $90 and how bad was the quality?
@mikeGsays How would you get $400 for it used when its selling brand new for $300 ?
$300 is subsidized price after taxes. People currently on contract can’t get it for $300 if their’s is broken.. they have to buy one from someone selling it new or gently used
Here in Canada the exact same phone outright is $300. I guess its alot cheaper here.
These trade in sites don’t know if people are jumping ship from android to iphone…. All they are seeing is people trading in.
Maybe the rush is cause they want a new Samsung phone before its blocked!
What on earth would make someone trade in a phone that has a chance of becoming unobtainable soon? We’ve heard reports of a rush on Galaxy S III phones over the weekend, and that makes sense to me, but we plan on keeping our Epic and Epic Touch (and Galaxy Tab) until the bitter end. Probably more now than we did a week ago. Does everyone just assume Samsung will be flooding the market with a whole line of presumably non-infringing replacement flagship phones soon, or think carriers will stop accepting trade-ins? Did Gazelle maybe shoot out an email saying “Since we may not be allowed to sell these soon, we’re going to stop buying them too, so smoke ‘em if you got ‘em”?
(And while we may have pinch to zoom and rounded corners, none of our devices has a UI resembling iOS in any significant way… we blew Touchwiz off each one within days of purchase.)
What is the point or reason to sell your existing phone because of the trial? I’m keeping my GNex
I don’t get it either oO
That makes no sense, i’ll keep mine 2.
well the new iphone announcement is coming I believe that is why there is an increase in trading old phones. Gazelle by quoting the verdict may be just trying to get free publicity
he, he, now to have Samsung phone is totally ghetto
Disapointing that anyone in their right mind would write something so idiotic.
Samsung… What is it good for?… Absolutely nothing! Say it again…
Idiot my note takes bigger turds than your ijunk
How do they differentiate from sellers that are upgrading to recently released newer phones like the S3 as opposed to just selling off Samsung devices due to the court case?
If the resell value has dropped, wouldn’t it actually be stupid to sell your Samsung devices when prices has dropped ???
Maybe they’re getting ready for the new Note2 and selling their phone before Note 2 hits the market and the price drops on their present phone. I for one, always keep an extra phone that I can slip the SIM card in for temporary use to get me by. I was checking what I could get for my Note today just for that reason. Also Gazelle was mentioned on TV today as a place to sell your phone. Bet their total numbers are up too. Every time a new phone comes out the resale drops on the old model.
indeed a very idiotic post. Samsung, being a multi-billion dollar company can easily recover in due time. why do you have to sell your samsung device? absolute nonesense, except if they go after all the samsung owners and slap them with a giant lawsuit, but I guess that’s too far to happen.
Sorry man, but this is bullshit. Or maybe some people might be so stupid thinking the upcoming ban in the U.S. will be valid for used phones as well?!? :-) Doesn’t make sense anyway…
seriously, i think every time Chris Smith writes, he does so sensationally to get feedback for his article without doing the proper journalistic research.. i hate journalists who create havoc, at the cost of causing unjust panic, for the sake of article ratings..
what number is it that the buy back company had before as average devices turned in.. 10, 20, 50, 100 ….out of how many millions were sold? and now they have 50% increase within how much time? hmm.. i wonder why he didn’t disclose this information, maybe the numbers were just too low to cause the public to panic..
if you look on craigslist or eBay you will see that people are commanding top dollar for their SGS2 phones.. and many are also buying them or posting wanted ads for them.. i don’t see a widespread panic to get rid of them.
check out this eBay SGS2 EMPTY box being bid on right now, currently at $31.. (Item number: 251137423660) that’s a hefty price for a resale value that’s plumeting.. maybe that $90 is the price on that buy back company’s site (these companies always give low ball prices for devices), but i just don’t see it on street market value.
Yeah, who get’s rid of their phone because of a trial verdict. I guess there is just a lot of uninformed consumers out there. Maybe they think their phone won’t work anymore or they just buy what other people say is cool, not sure.
Although, this whole thing sounds like a good way to get a cheap Android phone.