Based on long-term observation and analysis of the Chinese mobile phone market, telecommunications channel operator Jiesheng Communications has concluded that the best time to replace the iPhone is “3 years”. (Photo/Apple)
Many consumers in Taiwan will purchase an iPhone with a telecommunications contract, which is usually a 24-month contract period, and they can exchange for a new phone when the contract expires. Based on long-term observation and analysis of the Chinese mobile phone market, telecommunications channel operator Jiesheng Communications has concluded that the best time to replace the iPhone is “3 years”.
Jiesheng Communications said that if we look at the two-year replacement period, although the residual value of a second-hand iPhone is at a relatively high point of 50% to 55% of the original price, this means that consumers must bear the premium of a new phone and the largest initial depreciation drop every two years, and the overall purchase cost is still high.
On the other hand, if it is a three-year replacement period, the residual value of a second-hand iPhone can generally remain at 35% to 40% of the original price. This price is still quite attractive for the “old-for-new” program. If the average annual holding cost is amortized, the cost of replacing a machine in three years is actually the lowest, and at the same time, you can get a significant hardware upgrade across generations.
There are also people who try to use their mobile phones for 4 years or even longer, but Jiesheng Communications believes that extending the replacement time may not save money. When the iPhone reaches its fourth year, the residual value in the second-hand market will be only 15% to 20%. In addition to losing its price advantage in the second-hand trading market, it is also due to outdated hardware that the user experience will be compromised even after updates, or even cannot be updated.
In addition, when a mobile phone is used for three years, the health of the iPhone’s lithium battery is usually close to the 80% aging critical point identified by Apple, and system operation is prone to start to lag. Replacing it with a new one when it is three years old can avoid the sharp drop in residual value in the fourth year and save the maintenance cost of replacing the original battery. It is the most cost-effective replacement strategy.
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