How to Make Money Buying a New iPhone: A Buyer’s Guide From a Former Apple Employee
It’s that time of year: Apple is taking pre-orders two new iPhones, so the hype is at an all-time high. You might have already screamed to yourself, “Ok Apple, take my money!” or pitched a camping tent outside the most promising Apple Store. However, if you choose to put a little bit more thought into your buying decision, feel free to ask yourself the questions below:
iPhone Dilemma #1: When should I buy the iPhone?
Every two years, preferably during the holiday season. No less – and no more – than every other year.
iPhone Dilemma #2 “I have an iPhone 5S, but I have to have the newest iPhone.”
No! Every fall Apple releases a new iPhone. Generally you can describe the changes from phone to phone as either internal or external. Two examples of this are:
iPhone 4 -> iPhone 4S: Same design, internal upgrades
iPhone 4S -> iPhone 5: New design, similar internally, etc. What that means to you is that once you get past the “I have to have the newest iPhone” hype, the difference between an iPhone 5S to an iPhone 6 are not significant enough to justify paying an extra $200+ in early upgrade fees.
If you have an iPhone 5 or previous iPhone, congratulations! You should be eligible for an upgrade and ready to buy a new iPhone. In that case, you are now upgrading to a better phone on the outside and inside that’s meant to work with the newest software (more about that later).
iPhone Dilemma #3 “I’ve had my old iPhone forever, I’m going to be the first one to get an iPhone 6.”
No! Resist the temptation. Once the initial hype of the “new iPhone” dies down, it’ll be right around the corner for holiday shopping. Last year, Best Buy, Walmart, & Target all had holiday deals on every iPhone. The iPhone 5S was selling for as little as $119 with a contract (regularly $199). YOU WAITED THIS LONG…. YOU CAN WAIT THREE MORE MONTHS!
iPhone Dilemma #4 “I’m not impressed with the iPhone 6. I am going to keep my iPhone 4S for another year and wait for the next iPhone or buy a cheaper, older model.”
No! Do not keep your iPhone for more than two years or buy an old iPhone. Since I remain the owner of iPhone 4S, I have learned this lesson the hard way.
Every year during their big announcement event, Apple generally shares two things: The iPhone itself and the latest version of its iOS software. You may not want to upgrade your iPhone itself every year, but you don’t have much choice against updating to the newest iOS every year. Each iOS is designed to work ideally with the iPhone that comes out with it, so iOS 8 is going to work best on an iPhone 6. The iPhone 6 has a significantly better processor than an iPhone 4S or an iPhone 5 – both of which are going to significantly slow down and limit the use of the phone. So unless you want a phone that’s painfully slow, buy the newest iPhone every two years.
iPhone Dilemma #5: “How much memory should I get and which model should I get?”*
Whether you get the iPhone 6 or the iPhone 6+, buy only the 16gb model. Do not buy the 64gb or 128gb unless you absolutely have to!*. 16gb is too small and 64gb too big for most users. 32gb is perfect, but they hope you will agree to spend an extra $100 on 64gb instead. The larger memory iPhones cost an extra $100 and $200 respectively, but their resale values are only a few dollars more than the 16gb model.
* Note that this is the first year Apple is releasing two new phones simultaneously, so I can’t say whether iPhone 6 or iPhone 6+ Is the better option. Generally speaking, the “best” model (iPhone 6+ this year) is going to give you the highest resale value down the line.
So how can I make money buying an iPhone?
Once you bought your new iPhone, the first thing you want to do is call your service provider and ask them to unlock your old iPhone. Since your old iPhone is “out of contract”, they are required by law to unlock it from their service. This makes your former iPhone significantly more valuable to resellers, since it enables them to use your old phone on any carrier.
After unlocking your phone, list it on EBay, Amazon or Craigslist. All three are great for reselling electronics, but beware of super low offers by the most relentless of bargain hunters. At this time, you should be able to command $200 – $250 for an unlocked, gently used iPhone 5.
Buy a new iPhone for $119, sell your old iPhone for $200+ and you could make over $80 just by upgrading to a new model iPhone every two years!
Extra Tip: Keep the box of your iPhone to make it easier to sell (and package) in another two years.
