Smartphones are an essential part of human life these days. Thousands of devices become inappropriate for their user every day, and the consumer drives for a new, better cell phone. A phone which may not be compatible with the current user could be the requirement of another potential consumer. Here the process of selling and buying of used smartphones begins.

Selling Your Phone
Selling Your Phone

Why sell your phone?

Being up-to-date is one of the primary requirements of the 21st century. Most people think selling your

phone is a good idea only when the phone is incompatible, obsolete and not handy. No doubt, this is the primary reason people sell their phones. Besides this, there are significant benefits of selling your phone even if it’s still usable. The used phone industry is making an offer you can’t refuse.

Read this article from Kiplinger: 15 Safe Ways to Earn Extra Cash in the Age of the Coronavirus

Do the Math (Nerd Alert):

You might have a smartphone that could be just a year old and still usable for a couple of years more if you push it till its last breath. This may seem to be a good idea, but it isn’t because at the end of the first year your phone might still have 60% value and if you buy a new phone of the similar range adjusting inflation the new phone will cost you 10-15% more with all the updated specs of the same scale.

If you sell the same phone, but at the end of the 2nd year, the value will decrease drastically to 10-20% as no one wants to buy a 2 yr old obsolete device. Also, it will be challenging to find a buyer for that old device.

Besides this, if your phone survives for one more year and you use it pushing its limits, the phone will be completely devastated and could be sold only at the value of scrap. Now, if you buy a  new budget phone of a similar range after three years, adjusting the inflation the phone will cost you much higher.

Example:

Scenario 1:

You brought a Medium Budget phone of 20K, and it has average specs of budget mobile phones that year.

At the end of the year, your mobile will still have the value 60% of the original price, i.e., 12K

Sell your phone at 12K and get a new budget range phone  with all the updated specs  and it will cost you around 23K (adjusting 15% inflation)

Here you pay 11K and get a new phone with updated specs, and you are comfortable for the next year.

Scenario 2:

You brought a Medium Budget phone of 20K, and it has average specs of budget mobile phones that year.

At the end of completion of 1 year, the mobile will still have a value of 60% of the original price, i.e., 12K if it is in good condition.

Even though in general a budget smartphone is not very good to use after two-year, let’s assume its life is three years. The phone will have almost nil value. If you buy a similar medium specification phone, it will cost you 30K( adjusting 15% inflation)

Now, as per the basic business rule, the actual cost you bear is the cost of replacement. So if you see 30K cost of replacement after three years i.e., 10K every year.

Compare: 

Compare Scenario 1 with Scenario 2; you will find that scenario 1 is much better.

The reason being in the first one you bear a cost of 11k for one year and get a new smartphone with updated specs, while in the latter one, you bear the almost similar cost of 10K every year and use the same old and obsolete phone for three years. 

Keep it simple:

If you skipped the whole math part, understand it simply. Selling your phone and buying a new updated one after a specific period will cost you less than using the same phone for a long time and replacing it with a new one. If you need an elaborated reason, take some time and read the math part.

Countinue Reading More on How to Compare Deals On Selling Phone


administrator

Leave a Reply

Your email address will not be published. Required fields are marked *