May 2011 – NextWorth

Archives by Month: May 2011

When Buying a Smartphone Think of the “NEXT Purchase”!

One in two Americans will have a smartphone by Christmas of that year, Nielsen forecasts, compared to just one in 10 in the summer of 2008. So chances are if you do not have a Smartphone now, you will be trading in your feature phone and purchasing a new Smartphone in the next several months.

Smartphones before the carrier’s subsidy have a manufacturers retail sales price between $499 and $699.  Fortunately most consumers pay less than $200 for the latest and greatest smartphone. However, as soon as new model is released the older models start loosing value. If you are careful in your purchase of your next smartphone you will be able to offset the purchase of new Smarphone with the trade-in value of your used model in two years when your contract comes up.

When selecting the right Smartphone, one needs to consider which phone will best retain it’s resell value over time. To help consumers, we have developed the ” NextWorth Trade-in Value Index”. This index shows the current NextWorth trade-in value as a percentage of the original retail value. The average retail sales price ranges between $499 and $699 for a new smartphone.  In our index we have included smartphones that were introduced over the past year. We have not included models introduced in the past months except for the iPhone 4 Verizon model. 

The iPhone 4 32GB and 16GB top the NextWorth index. Both phones can currently be sold for over 60% of their retail value. That’s good news for AT&T iPhone subscribers. The Verizon iPhone 4 has a much lower index value because the Verizon model can only be refurbished and sold to a subscriber who belongs to a limited CDMA carrier network. A refurbished AT&T iPhone 4 can be reused in many GSM carrier networks around the world.