Old Cell Phones are still fetching high value on the best Trade-in sites. Leading research from MartketWatch shows that it's because we are hoarding them. With less used Cell phones on the market because of hoarding instead of selling your old cell phone, you have it in a bottom draw.
50% of American consumers have as many as 8 no longer used cellphones sitting in bottom draws. The value of those cell phones and decides on the market would be a staggering $34 Billion. What's more, 480 Million Cell Phones and other devices are added to this bottom draw each year accoring to Trade2Save.com CEO Chris Whittome. Trade2Save have a vested interest in buying cell phones off of customer by persuading them to open this bottom draw, so that they can resell them to customers who need a phone but don't need the lastest and greatest new iDevice.
Great News for iManufacturers, not so good for eWaste
Chris Whittome: "By keeping those devices in a bottom draw, their value and usefulness eventually decreases to nothing. Recycling should start with reuse, so that cell phones get a longer useful Life. Increasing the life of a cell phone is not in the interests of manufacturers like Apple for example, who has been releasing a new model every year since 2007 -- this equates to over 90 million phones and $60 billion in revenue.The majority of cell phone users never part with their cell phones until it is time to throw them into the e-waste tip. Those phone could have been used for 2-3 years longer.
"If more iPhones flooded the market, the resale price would drop, and there would be less incentive for users to upgrade," says technology analyst Jeff Kagan. The high price of old iPhones helps fuel demand for the latest gadget, he says.
Chris Whittome adds, "The incremental improvements of new smart phones are every decreasing - we are nearing the end of Moore's law as microchip technology moves beyond the 20 nanometer scale... Whittome goes on.... The major developments are now in software - we've reached a speed ceiling that is now based on marketing more than real increases in interface development."
The retail price of a new iPhone starts at $650, but most people pay wireless carriers a subsidized price of $199 with a two-year contract. The most common monthly contract for an iPhone is $115, so the real cost is more like $2.760.
Data Charges on Pay as you go Kept higher by the networks to discourage Used sell Phone purchases
"Data on pay as you go contracts are significantly higher than fixed term contracts, so the advantages of a no contract usage plan is diminished. Add to this the currently high resale value of about $200 for previous iPhone models, customers are often able to upgrade to the new model for free, since the purchase of an iPhone 5 with a new contract is $200 also.