You, Undermining Apple’s Esteem
iPhone Duo Now Available in the Secondhand Market at Profound Discounts
Merely two weeks post-launch, Apple’s inaugural foldable smartphone, the iPhone Duo, is experiencing significant price reductions in the secondhand marketplace.
Estimates for buyback on unopened domestic units of the base model, initially priced at 3.29 million won, have plummeted to roughly 2.4 million won.
In the United States, the highest buyback offerings for select models have dipped to over 38% beneath their original retail price.
Alarm bells are ringing over the potential erosion of the “resale value retention,” typically hailed as a hallmark of the iPhone, as alarming reports surfaced of internal display cracks soon after release, with repair costs climbing to 1.65 million won, exacerbating potential buyers’ anxieties.
Launched at 3.29 Million Won… Buyback Estimates for Unopened Units at Approximately 2.4 Million Won
Maximum Buyback Prices in the U.S. Dwindle by Over 38%
On November 10, the used smartphone price comparison site SellCell reported that the maximum buyback price for a 2TB iPhone Duo in Mint condition was $1,971, which is $1,228 lower, equating to a 38.4% depreciation from its launch price of $3,199.
This denotes a stark divergence between initial selling prices and secondhand buyback valuations just a fortnight following the device’s debut on October 23.
The scenario remains analogous for the base 256GB model, where the maximum buyback price for a Mint condition device was reported at $1,560, reflecting a 22.0% discount from its $1,999 launch price.
Devices classified in Good condition showed a valuation of $1,315, down 34.2% from the original price, whereas units in Poor condition languished at $1,107, marking a substantial 44.6% dip.
Notably, buyback valuations plummeted further for devices exhibiting defects such as cracked screens.
Once Priced at a Premium… Now Buyers Find Themselves Flustered…
The earlier premium once observed in South Korea’s secondhand market is vanishing at an alarming rate. At one time, listings for the 256GB iPhone Duo soared to 3.82 million won, with a particular listing nosediving by 400,000 won to 3.42 million won within a mere span of four days.
Late last month, additional listings emerged on secondhand trading platforms boasting unopened units for between 3.1 million to 3.3 million won, closely approximating or even undercutting the official domestic launch price of 3.29 million won.
As of November 5, the used-phone vendor Retems was offering between 2,388,000 to 2,437,000 won for unopened, unlocked 256GB models.
This represents a discrepancy of up to 902,000 won below the launch price. A device that initially demanded a premium amidst an early shortage is now valued significantly below its original price, just over two weeks after its release.
Concerns regarding resale value trace back to the ongoing controversy surrounding display durability that unfolded shortly after the launch.
Since the iPhone Duo became available on October 23, consumers across South Korea, the United States, Australia, China, and other regions have reported instances of the inner screen cracking along the folding line or developing conspicuous bright lines.
Some users vociferously claimed that display issues arose mere hours after they made their purchases.
On social media, the phrase “Crackgate” has surfaced, merging “crack” in reference to the screen fractures and “gate,” a prefix often associated with major scandals.
In response to the escalating concern, Apple has officially acknowledged the issue. As per Reuters, Apple confirmed on October 26 that it was aware of defects impacting the inner displays of certain iPhone Duo units, offering replacements through AppleCare for affected customers.
Notably, Apple refrained from specifying the underlying cause of the defects or quantifying the number of affected units.
A Fractured Image for Apple
Screen Repairs Priced at 1,649,000 Won… Half the Launch Price
The steep repair expenses associated with the iPhone Duo may further hinder its secondhand market performance.
Apple lists the out-of-warranty repair charge for the iPhone Duo’s inner display at $999 in the United States and 1,649,000 won in South Korea.
This figure approaches half of the 3.29 million won launch price for the domestic base model. Furthermore, these charges stand in stark contrast to competing devices.
U.S. technology publication Android Authority notes that repairs for the inner screen of the Galaxy Z Fold8 range from $419 to $579, depending on the repair extent, highlighting the iPhone Duo’s exorbitant repair costs.
If Repair Expenses SitToo High, Resellers Must Navigate Burdens Too
Actual repair costs incurred by consumers may vary based on whether they possess AppleCare+ and other factors.
Nevertheless, the prospect of such costs adversely impacting the residual value of used devices remains significant.
Secondhand buyers must acquire damaged devices, refurbish them, and then resell, yet exorbitant repair fees may stymie their ability to secure profits.
Consequently, this prompts them to adopt a conservative stance towards buyback offers, contemplating both the risk of defects and repair expenditures.
Unresolved Causes Behind Display Defects
The underlying cause of the display defects remains shrouded in ambiguity. Electronics repair expert iFixit, following an examination of the iPhone Duo, suggested that stress may concentrate around the inner display and the central hinge support structure.
Their findings indicate that a lack of sufficient clearance from the screen during folding may lead to damage.
Foldable Devices Depreciate More Rapidly Than Traditional Premium Smartphones
Industry analysts assert that the pricing declines for the iPhone Duo’s secondhand market should not only be evaluated through the prism of early defects but also against the broader context of the foldable smartphone sector’s structural characteristics.
A depreciation study of foldable smartphones conducted by SellCell last October revealed that the average resale value of such devices plummeted by 62.3% six months post-launch and 71.1% at the 18-month mark.
In contrast, conventional flagship smartphones exhibited depreciation rates of 49.8% and 60.7%, respectively, during the same intervals.
This delineates a trend where foldable smartphones tend to experience steeper declines in resale value compared to their premium counterparts with traditional bar designs.
Rapid Depreciation Is Not Solely an Apple Dilemma… Galaxy Models Are Also Affected
The pronounced depreciation trend is not exclusive to Apple; Samsung’s Galaxy Z Fold and Flip series encountered a similar average value decline of 63.7% within the first six months post-launch.
The intricate designs typical of foldable devices, along with high repair costs and a comparatively limited appetite for secondhand units, are frequently cited as key contributors to diminished resale prices.
Nevertheless, the iPhone Duo garners particular scrutiny, being Apple’s inaugural venture into the foldable market.
Apple’s Inaugural Foldable Model Priced Above 3 Million Won
Can the iPhone Uphold Its Esteemed “Resale Value Retention” Status?
Apple has historically championed robust brand allegiance and high residual values as distinguishing features in the premium smartphone landscape.
However, with its first foldable variant positioned above the 3 million won mark, the convergence of early display defects, exorbitant repair costs, and downward pressures on secondhand buyback valuations raises pertinent questions about its ability to sustain the resale value reputation exemplified by its other iPhone models.
Source link: Asiae.co.kr.
