iPhone Worth More to Consumers Than Android Smartphones
In a recent survey conducted by investment company Piper Jaffray, users of the iPhone considered their devices to be worth $313 while Android smartphone owners valued their devices at $220, or approximately $100 less. The survey polled 400 consumers from major metropolitan areas in the U.S. and ASia.
Interestingly, the $313 valuation that consumers attributed to the iPhone is also $100 more than the carrier-subsidized price of the base 16 GB model of the current iPhone 4S flagship.
The Piper Jaffray report initially appeared on Apple Insider.
This news may be positive news to carriers as it shows consumers may be willing to pay a little bit more for their devices. Verizon Wireless had stated when it switched to Share Everything Plans where voice, text messaging, and data are shared between multiple devices that if customers want to keep their grandfathered unlimited or tiered data plans, they would have to pay the full price of their devices when upgrading and that they would not be eligible for subsidized handset pricing.
Also interesting in the report is the value placed on the phone. It’s unclear if Android smartphone owners perceive a lower ‘worth’ for their devices based on materials and build quality, the OS being free, or if market conditions were considered in the valuation.
Typically, Android handsets debut at $200-$300 at the very high end, though those prices quickly drop. Additionally, as many Android smartphone manufacturers introduce new models every few months, prices for Android handsets usually depreciate more quickly than competing iPhone models, which have a new shelf life of about a year from introduction. In comparison, flagship iPhone models, while subsidized, start at $200 and can go up to $400 for the 64 GB edition.