OnDemand WTP Pricing Research

Impact of iPhone 6 on iPhone 5 pricing and sales | TechRepublic

It’s interesting how prices for all models jumped a bit right after the iPhone 6 announcement – especially for the base iPhone 5. This could be the result of a “hoarder” instinct – either real or expected – whereby the perceived value of the current model was deemed overly high in anticipation that those consumers devoted to an iPhone 5 variant might want to reel one in before the opportunities diminished.

The average price for a new iPhone 5 (all models) fell around $55 since it’s post-announcement peak, from $491.43 on the 10th to $435.06 on the 18th. In fact, all models ended up with a lower average price last week than they experienced at the time of the iPhone 6 launch (though used models saw less fluctuation).

Prices settled and rose at least three times for each model until last week, showing that pricing here is more like waves rocking a boat than a balloon slowly losing air. The iPhone 5s had the most distinctive ups and downs, perhaps because it is arguably the best model and the one with the most staying power but yet can be hardest to pin a “true” value upon. As you can see, used phones have a much steadier average price than new ones.

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Impact of iPhone 6 on iPhone 5 pricing and sales.

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