Surprising surge: Apple iPhone 16 resale prices surpass American retail on secondary market

Apple iPhone resale prices: what’s driving the spike?

Such demand-driven resale price spikes are rare but not unheard of. Analysts suggest a few potential factors contributing to this:

1. Geographical MSRP differences: A majority of these units are ending up outside the U.S. in markets with higher MSRPs, such as Asia, South America, and the Middle East. Regional demand for new Apple iPhones often exceeds OEM supply, making the secondary market an appealing option.
2. Resellers’ upfront loss for long-term gain: Some resellers in domestic markets are likely willing to pay higher-than-retail prices, as they plan to sell associated services—such as phone plans, insurance, or extended warranties—with each unit. For these sellers, an initial loss on hardware can lead to increased customer acquisition and additional revenue streams.
3. Sales tax arbitrage: With high-value models like the Apple iPhone 16, some sellers are taking advantage of sales tax differences by selling across regions with lower tax rates. This price differential can sometimes make secondary market prices competitive with or even higher than retail.

Broader trends in the Apple iPhone secondary market

The secondary market for Apple iPhones is seeing some notable shifts, especially for older models. With longer upgrade cycles and strong demand for used devices, resale prices for recent Apple iPhone models remain robust. Some key insights:

• Upgrade cycle influences: With roughly 50 million Apple iPhone 12 devices entering the typical upgrade window, Apple has strategically marketed the Apple iPhone 16 series as a worthwhile upgrade, citing improvements in CPU, GPU, and camera performance. Apple is also offering up to $1,000 in trade-in credit for Apple iPhone 12 devices, encouraging users to upgrade to an Apple iPhone 16 model.
•  Steady resale pricing for Apple iPhone 12 and 13 models: Despite the introduction of newer models, prices for the Apple iPhone 12 and Apple iPhone 13 Pro Max remain strong, as these devices have proven durable and capable. B2B resale data reveals the Apple iPhone 13 and 13 Pro Max are currently the top-selling models on platforms like B-Stock.
• Sustained value retention: In a market where demand outweighs supply, Apple iPhone models from the 12 to 16 series are holding their value, with the Apple iPhone 15 Pro Max wholesale price maintaining up to 74% of its retail value—a significant figure in the secondary market.

The future of Apple iPhone resale: no major shifts expected

Despite Apple's recent innovation in intelligence and performance features with the Apple iPhone 16, experts believe the market won’t see a massive surge in upgrades. Current Apple iPhone models remain largely similar in design and functionality, meaning many consumers may choose to keep their devices longer.

Source: B-Stock