Distributor updates

The iPhone 4 launch is only weeks away and from a trade perspective, the wholesale community can expect a peak in prices straight after launch, with demand outstripping supply. After the launch and over the course of the following 6 months, the iPhone 4 would be expected to drop in price somewhere in the region of 4 – 6%

The three previous iPhones have all decreased in price over the first 6 months period, although this figure has continuously reduced per model. The original iPhone saw a drop of 21% in the first 6 months, the 3G model reduced by 11% and the latest 3GS only reduced by 9%.

Statistics from gsmExchange has revealed that demand for the outgoing model could remain in place for up to 6 months although the price will continue to drop. One major consideration for traders is whether or not the difference between the iPhone 4 and the iPhone 3GS will be so extreme that the 3GS could become obsolete overnight. In July 2009, Apple launched the 3GS model to take over from the existing 3G phone. On this occasion, the difference between the two models was relatively minimal and demand for the 3G model remained high. In contrast to this statistic the original iPhone disappeared overnight after the launch of the 3G version. phoneLot recorded a decrease in requests of up to 85% for the original iPhone between June and July 2008.

Early indications from the gsmExchange.com trading platform is showing an expectation of an event similar to that experienced in 2008. Prices fell sharply on the trading floor today with some traders posting offers up to $50 less than before the iPhone 4 announcement.