Decoding the Used iPhone Price: A Guide for Wholesale Buyers

Key Factors Affecting Used iPhone Prices

The primary points of consideration when pricing used iPhones are device condition, storage amount, carrier lock status, and, above all, age. As phones become older, they progressively lose value on the secondary market. The most dramatic drop in value occurs when an iPhone is old enough that it can no longer run the latest version of iOS.

Device condition can seem like a mysterious assessment. Let’s examine how Apple explains “good condition” in their own device trade-in program. Here’s Apple’s definition of a good-condition used iPhone:

• It turns on and functions normally.

• All the buttons work.

• The cameras work, and all lenses are free of damage.

• The battery holds a charge.

• The body is free of dents and scratches.

• The touch screen and back glass are undamaged.

• The display is free of distortion, lines, and black or white spots.

Devices with significant blemishes and cosmetic defects are commonly considered “fair condition.” Devices with cracked screens are “cracked.” In terms of device value retention, the hierarchy is new > good > fair > cracked.

How Supplier Relationships Impact Used iPhone Pricing

A major factor in the pricing of used iPhones is the number of middlemen the phone passes through between the old owner and the new. That is, suppliers that source directly from consumers or major retail/carrier trade-in programs will typically offer the best prices. WeSellCellular is privileged to work directly with manufacturers and the largest carriers to source their iPhones.

In contrast to simple and direct supplier relationships, imagine a phone that goes through three different suppliers before reaching the ultimate consumer. As the chain of ownership grows longer, more and more businesses have to mark up the phone and take their cut, with the end product being a more expensive phone.

Seasonal Trends and Market Fluctuations in Used iPhone Pricing

Apple’s iPhone release calendar drives the seasonal pattern of the used iPhone market. New devices typically hit the market in September, which leads to sudden price drops on the previous models. The largest price decrease is typically on the former top-of-the-line iPhone generation as it gets surpassed by the latest release.

According to data from UpTrade, in 2023, September saw the biggest price drop, with an average price decrease of 6%. October came in at -3%, and November at -4%. This trend should be fairly consistent year to year.

How to Maximize Profitability When Buying Used iPhones in Bulk

When buying iPhones in bulk, first evaluate your potential suppliers for quality, reliability, pricing, and logistics. You want to find a firm with a solid reputation, a long history in the market, excellent reviews, competitive pricing, and easy returns.

Once you’ve selected a supplier, review their inventory to be sure they offer the models you want at an appropriate grade, price, and lot size. The next step is to contact them to negotiate pricing — most vendors are flexible on price when the quantities become large. Once you’ve settled on a price, be sure you understand the logistics of the purchase, such as how the devices will be shipped, who will pay for shipping, if customs duties are required, what tracking will be provided, etc.

Making Informed Buying Decisions in the Used iPhone Market

Look at the difference between publicly listed iPhone trade-in prices and sale prices on online marketplaces. This information gives you a pricing boundary box around the least you’ll pay to secure a used iPhone and the most you’ll get from a buyer. Distributors who source from consumer trade-in programs perform their aggregation and grading function for a markup over the trade-in price. If you’re a wholesaler selling to retailers, expect to stay in the middle of the overall pricing range, and leave room for resellers to make a necessary profit.

FAQs

How does iOS version compatibility affect used iPhone pricing?

iPhones that can be updated to run the latest iOS version will command the most value on the secondary market. There’s a steep fall-off in value for devices that are too old to use the current generation of software.

What is the impact of iPhone battery health on resale value?

If a used iPhone has had a recent battery replacement, it will command a premium on the market. Otherwise, battery health tracks phone age, and the older the phone, the more depreciated.

What storage capacities should I look for when buying used iPhones in bulk?

Customers exist for every tier of storage. That said, the smallest storage capacity offered on older iPhones (64 GB) is looking awfully limited these days. To maximize your market size, aim to purchase devices with at least 128 GB of space.

What accessories and original packaging should I expect to receive with used iPhones?

iPhones on the secondary market will vary in terms of accessories. The product listing page should specify what is included with the device, if anything. Often, it may just be a cable.