With most tech items, it seems the value of older models goes down the moment rumors of a new version begin to surface. Indeed, as soon as some manufacturers — Apple among them — break the news about a new model, people immediately start saving their money and planning to get the latest, greatest option available.
When Apple made the initial announcement about its ultra-elite, iPhone X that comes with a $999 price tag, many people thought it’d be the best-selling iPhone ever made and assumed the value of other iPhones would drop instantly once it was possible to buy the iPhone X. But, did that happen? Let’s find out.
The Main Differences Between the iPhone X and iPhone 8 Models
The iPhone 8 standard and Plus models are slightly thinner than the 7.7-millimeter thickness of the iPhone X. The iPhone X weighs less than the iPhone 8 Plus but more than the 5.22-ounces of the standard iPhone 8.
Like many smartphone buyers, you might be interested in battery life capabilities, too. The battery inside the iPhone X lasts for nearly 11 hours (10:49). However, the iPhone 8 only has enough power for 9:54 hours. The iPhone 8 Plus beats them with 11:16 of battery life.
The user identification method for the iPhone X and iPhone 8 smartphones varies, too. If you opt for either iPhone 8, it uses Apple’s Touch ID, or fingerprint verification system, to grant access. In contrast, the iPhone X is the first of its kind to identify people by their faces.
Unlike the iPhone 8, the iPhone X also offers Animojis, or animated animals that mirror users’ facial expressions and speak in their voices. Although this advantage might be a novelty for some, others might say it’s worthwhile and not purely fun.
Trade-In Timing Matters
Market research has found that the best time to purchase a new phone is six months after its release, when prices are lowered to attract more consumers. As for saving even more money by trading-in an old phone to get the latest model, Liam Howley, the CMO of Decluttr who buys and sells refurbished phones, cautioned the value of all older phones would go down once the iPhone X became available to order. That’s why people who traded in their phones before then got up to 30% higher trade-in values than those who waited until after the pre-order period started.
The individuals who accepted trade-ins probably felt the mere availability of the iPhone X devalued the iPhone 8 (or any older phone). They likely came to that conclusion because until the iPhone X was ready for pre-order, people with iPhone 8s were trading in the newest Apple iPhones a person could buy. They often used that fact to their advantage to get the most money possible to put towards the iPhone X.
Reduced Sales Forecasts for iPhone X?
Numerous market analysts cite less-than-expected demand for the iPhone X and have cut their Q1 sales forecasts as a result. JL Warren Capital, LLC predicted a five-million unit drop for the smartphones in Q1 totals based on the amount sold in the fourth quarter of 2017. Also, Zhang Bin, an analyst who works for Sinolink Securities, Co. admitted Apple’s first-quarter shipments of the iPhone X might be 10 million less than his previous estimate.
However, a few days after that report, Jun Zhang, an analyst from Rosenblatt Securities with a conflicting opinion, weighed in. He argued that the reports of low demand are incorrect and mentioned that he’d checked with Chinese suppliers who told him they hadn’t received fewer orders.
The iPhone 8 Outsold the iPhone X During the Latter’s Launch Month
Remember the earlier prediction that the value of older phones would drop as soon as people could order the iPhone X? It made sense at the time, but later statistics show people still eagerly bought the iPhone 8 and 8 Plus, accounting for 40% of total iPhone sales in the iPhone X’s first month of availability. In contrast, only 30% of iPhone sales for that period came from the iPhone X.
As you can see, the iPhone X may have made other models less attractive to people who crave the newest tech. As for most others, they still see the iPhone 8 as an appealing option and are buying it to prove their loyalty.
Image by Apple