The WSJ’s MarketWatch, which tracks the pulse of markets for engaged investors, has released an analysis which looks at old-generation iPhones, calling it a $9 billion (€6.7 billion) “gold-mine.”
According to resale site SellCell.com, the trade-in value of all old gadgets today in America is $34 billion (25.4bn EUR). The company reportedly has “a vested interest in tapping into this possible gold mine,” and old iPhones account for about a quarter of that sum, reports MarketWatch
According to the Dow Jownes-owned research firm, “Apple still has one of the highest upgrade rates in the industry.”
Around 83% of iPhone owners planned to upgrade to a new model in December 2012, two months after the iPhone 5 had been released. That number was up 10 percent from 73% a year earlier, according to Morgan Stanley Research.
“That rate was just 63% for Samsung and 47% for HTC. But analysts say the company remains heavily dependent on its iPhone pipeline, hence new products like the iPad Mini and recent rumors of an iWatch,” reports Marketwatch.
The research note adds that Apple gets 56% of all its revenue from the iPhone business alone, citing it as a direct reason why Apple’s share price has fallen so abruptly in recent months.