This morning I took an informal poll on both Twitter and Google+, asking if any iPhone 5 owners would be upgrading to an iPhone 5s. Surprisingly, the responses were skewed towards yes and the main reason looks to be how well the iPhone 5 has held its value.
Earlier this month, we shared a post on getting the most money for your iPhone, and just to be safe at that time, I locked in $315 through Gazelle for my 16 GB iPhone 5 that uses AT&T’s network. After my poll this morning, I was able to get even more for my handset: $352 through NextWorth, using the promo code of “todaysiphone” for a 10 percent bonus. (Thanks, David!) I was doing all this without much thought of upgrading, to be honest. It was more an exercise just in case.
Then I realized that the quoted value was much higher than my Early Termination Fee with AT&T: Essentially, I can get the same $199 pricing as a new AT&T customer by paying off my current contract. I’ll even have some money left over after I do so. Granted, I did pay $199 for the iPhone 5 less than a year ago, so paying another $199 this year isn’t what I’d call a “cheap” prospect. But it’s much cheaper than paying full price for a new iPhone 5s. If I had to do that, I’d surely skip the phone purchase.
I’m wondering if Apple discontinuing the iPhone 5 — it’s gone as of next week — has anything to do with this. Could the values be slightly higher since the handset will be scarce? Maybe, but probably not much. Instead, this speaks to how a good an investment an iPhone can be: I can think of no other phones that hold their value as well. Just to confirm that, I went back to NextWorth to compare the prices of some current flagship phones that are actually newer than the iPhone.
Got a 64 GB HTC One for AT&T? NextWorth pays $259, or $61 less than the 16 GB iPhone 5. (Note that’s without the 10 percent bonus on either phone; NextWorth is paying $320 straight up for a 16 GB iPhone 5.) The 16 GB Galaxy S 4 does much better with a value of $315 or just $5 less than an iPhone 5 with the same storage capacity. That relatively new 32 GB Lumia 1020 with its 41-megapixel camera? It’s worth $309 to NextWorth. And a 16 GB BlackBerry Z10? Well, $160 is better than nothing.
Why would I upgrade from an iPhone 5 to a 5S? I’m not the average consumer, of course. I write about mobile technology for a living. So I buy various devices to get a feel for the whole smartphone market and — hopefully — to maintain perspective on what the various companies in this space are doing. Yes, I’ve written a weekend column about Android for the past 4 years, but I’ve owned most of the iPhone models, have a few Windows Phone devices in the house and even keep a BlackBerry device on hand.
Is that worth an upgrade for most of you? I can’t decide that; it’s your money and your decision. But with the values being offered for the iPhone 5, the cost may not be as much as you’d think. And based on the poll responses I saw this morning, most respondents are planning to take advantage to cash in on their iPhone 5 investment.