If you’re a reseller specializing in consumer electronics, you’ll want to make sure you have a good selection of both new and refurbished Apple iPhones in your inventory. But what models should you be focusing on, what prices should you be charging and where should you source iPhones from to ensure you pay the lowest price possible to maximize your profits? Let’s take a look.
The Apple iPhone Market 2021
The best-selling new iPhone of 2020 was the iPhone 11, with total unit sales of 37.7 million units. This also made it the best-selling smartphone of the year. Its competitor, the Samsung A51, sold 11.4 million units. The continuing success of the iPhone 11 is despite the fact that the iPhone 12 was released in 2020. The iPhone 12 is expected to take over the top spot as we head into 2021, with first quarter unit sales predictions of 55 million units sold of both the iPhone 12 and iPhone 12 Max Pro models.
For now, the iPhone 11 rules the roost. Other models that sold strongly in 2020 were the iPhone SE 2020 with unit sales of 8.7 million, the iPhone XR, with unit sales of 8 million, the iPhone 11 Pro Max, with unit sales of 7.7 million and the iPhone 11 Pro, with unit sales of 6.7 million.
When it comes to the secondary market for iPhones, usage data shows that the iPhone 7 is still the most popular. The iPhone 8, the iPhone X and the iPhone XR remain popular as people either choose to hang on to their older phones for longer or, if they are going to change iPhones, choosing to buy a second hand or refurbished phone instead.
Sales of new iPhones are also down compared to phone retention rates and used and refurbished phones sales, though sales of new iPhone do now appear to be on the rebound. There are several reasons why customers are choosing to keep hold of older phones or change them for the same model or buy second hand or refurbished. They are:
Cost
The price of a replacement phone is one of the major factors for all but a small amount of Apple fanatics and customers with money to burn, especially after the privations of a pandemic that has left customers with less money to spend and more awareness of the need to save money. One of the ways customers are looking to save money is by buying older model iPhones or refurbished or second hand models, and it’s not hard to see why. An entry level iPhone 12 is priced at $799, rising to $1,399 for the 512GB Max Pro model. Compare that to an iPhone 7, which can be picked up from a site like Amazon for as little as $150, and it’s no surprise that many customers are choosing the latter option.
To Upgrade Or Not To Upgrade?
It used to be the case that every new iteration of the iPhone Apple introduced was eagerly snapped up by consumers regardless of how long they’d owned their previous model, as each new model introduced a wealth of amazing new features that completely distinguished it from the model before. Those days are long gone. For many owners of newer iterations of the iPhone, upgrading to a phone that’s pretty much identical to the one they already have is no longer an attractive prospect. Choosing to replace their phone with the same model they already have for a lower price or choosing to replace it with a refurbished model with the same or similar capabilities, is now the preferred option.
People Waiting For Price Drops
When new models are released, which happens pretty much every year, earlier generations drop in price. For example, an iPhone 8 priced at $599 dropped by a hundred dollars on release of the XR. So, why buy new when you can wait and save? Many more customers are waiting to do just that thanks to the predictability of Apple’s release schedules.
For resellers of new iPhones, getting hold of models that are about to undergo a price drop means you’ll have the same phones to offer customers at the same time as Apple. Indeed, by buying new phones wholesale or refurbished models, you’ll even be able to offer lower prices, making the phones you have for sale more attractive and therefore more likely to sell.
Environmental Issues
Another factor that customers are taking into account when making not just tech purchases but pretty much any purchase you can think of is the environment. The manufacture of new technology causes harm to the planet in a way that old and refurbished tech doesn’t, and many customers simply can’t justify buying new when they know they’re causing harm to the world as a consequence.
Environmental concerns have helped fuel an explosion in the second hand and refurbished market as more and more customers decide to put the needs of the planet before their personal desires to constantly acquire new gadgets. Resellers of refurbished phones are perfectly placed to tap into this market, as many customers come to the conclusion that there is no point depleting more of Earth’s resources when environmentally friendly alternatives not only exist in abundance, but are also far more affordable.
The message that a smartphone should have a lifespan of between 5-10 years as opposed to the 12-14 months most people used to keep hold of them is slowly filtering through to the public, and it’s changing the way they think about their purchasing decisions.
A Flourishing Secondary And Refurbished Market
There was a time not very long ago that buying a second hand or refurbished phone online was fraught with problems. Most sales were conducted on eBay, and the site was the Wild West of marketplaces, with unscrupulous sellers passing off faulty and even counterfeit goods as refurbished, second hand and even new phones and then disappearing off with customers’ money with no redress. As a result, customers were understandably cautious about buying refurbished and second hand phones as they could never really be sure they were going to get what they were paying for.
Thankfully, those days are pretty much over. With sites like Amazon Renewed and eBay introducing rules on who can sell refurbished phones and seller certification respectively, buying second hand and refurbished phones online is a much safer and more reliable process. This, alongside the other factors we’ve mentioned, has led to a huge increase in the size of the market. Also, 57% of customers say that a brand-name refurbished product is a key factor in their purchase consideration. One of those brands customers want is Apple, which is why resellers should definitely focus on iPhones when stocking their refurbished phone inventories.
Refurbished iPhones – The Best Sellers
The biggest online marketplaces for refurbished and second hand iPhones are eBay and Amazon. This also makes them ideal guides both for the models resellers should be looking out for and the sort of prices they should be charging customers.
Both sites produce lists of bestselling new and refurbished iPhones, and as of March 2021: Here are the lists for Amazon and for eBay. These are the models resellers should be looking out for as well as the sort of prices they should expect to charge for them across not only eBay and Amazon, but also across other online outlets such as eCommerce sites and their own websites depending on model, age and condition.
iPhone 7
eBay price: $100-$250
Amazon Renewed price: $150-$270
iPhone 8
eBay price: $170-$380
Amazon Renewed price: $250-$300
iPhone XR
eBay price: $230-$400
Amazon Renewed price: $355
iPhone X
eBay price: $280-$440
Amazon Renewed price: $340
iPhone XS
eBay price: $280-$580
Amazon Renewed price: $405-$1099
These are just guide prices, which is why resellers using eBay and Amazon Renewed as guides for price setting should check back regularly and do some research to see where prices are and adjust theirs accordingly so they always stay competitive.
Sourcing Apple iPhones Wholesale
Now we’ve talked about the market for new and refurbished iPhones, the models resellers should be looking out for and the sorts of prices they should be charging, it's time to turn our attention to the best place to source wholesale new and refurbished iPhones sold for the lowest possible price to ensure your reselling business makes the maximum profits. For that, you should look no further than goWholesale.
goWholesale is an online wholesale marketplace specializing in supplying new and refurbished consumer electronics to business customers, with a particular emphasis on smartphones and laptops. For resellers looking for iPhones, we sell a huge range of both new and refurbished models from both Apple’s current range such as the 12 Max Pro, the SE range and the XR to older iterations such as the 7, 8 and XS ranges.
The new model iPhones we sell are mostly sourced from some of the biggest names in US retail and are sold wholesale for very low prices, meaning there’s plenty of room to make profits for resellers who choose to source new phones from goWholesale. When it comes to refurbished phones, all the iPhone we sell are in a ‘retail ready’ state after going through a rigorous four-step refurbishment process. The process is as follows:
Step 1. Each iPhone is thoroughly inspected and a test of its basic features and functions is carried out.
Step 2. A series of technical tests are conducted. Any faults found are corrected and any parts that need replacing are switched out with brand new Apple-branded parts.
Step 3. Each unit is carefully sanitized, repackaged and accessorized.
Step 4. A comprehensive inspection report is produced, documenting the refurbishment.
Every iPhone we sell comes with all its original accessories and is in either its original Apple packaging or very high-quality replacement white or brown plain packaging. All original documentation is also present apart from the manufacturer’s warranty. The warranty has been replaced with a goWholesale warranty, so in the very unlikely event that one of the phones bought through our platform is faulty or not as described, it can be returned for a replacement or a no-questions-asked refund.
A Note On Accessories
Last year, Apple announced that its latest phone, the iPhone 12, would ship without chargers or Lightning EarPods to cut down on their environmental impact. The company plans to gradually phase out accessories from all its phones going forwards.
All the phones we sell at goWholesale come with accessories, meaning you’ll be able to offer your customers more bang for their buck than Apple itself does. Also, going forward it is a good idea to stock up on Apple accessories such as wall chargers and chargers as these will inevitably be in higher demand than they are currently. goWholesale sells the full set of Apple accessories at wholesale prices, so be sure to keep your inventory stocked up with them to satisfy customer needs in the months and years to come.
Buying New And Refurbished iPhones From goWholesale
It’s easy to buy new and refurbished iPhones from goWholesale. All the models we stock can be found on our Apple listings or via the search bar or through the drop-down category menu on the site. Simply navigate to each model of phone you wish to buy, input the number of phones you need and add them to your cart. One you’ve built your order, hit the checkout button, pay for your order and arrange shipping. It’s as easy as that.