Resale value of Galaxy S II drops after Apple’s $1 billion federal court win
San Francisco, CA, United States (4E) – After a federal court decided that Samsung did infringe on Apple’s patent and awarded $1 billion to the Cupertino-based company, the Galaxy S II’s resale value has dropped. Gazelle, a website that buys consumer electronics and resells the merchandise, reported a 50 percent increase in trade-ins for the Galaxy S II and a 10 percent drop in resale price.
It looks like the verdict didn’t only lighten Samsung’s corporate wallet, it also jeopardized the future of Android features on smartphones. Consumers are unsure if Android-powered smartphones will be allowed to use key features identical to Apple’s iPhone, according to website TechBargains.com.
NextWorth, a website similar to Gazelle, also noticed the resale gap between the iPhone and Galaxy. Chief marketing officer of NextWorth Jeff Trachsel believes that gap is going to widen. According to NextWorth.com, the Galaxy’s current resale value is $90, while the iPhone’s is $300.
The verdict came at the perfect time for Apple since its latest smartphone, the iPhone 5, is due for release in two weeks.
“The court decision reasserts Apple’s dominance in the space,” Trachsel said, according to Market Watch.
Some analysts point out that the bump in Galaxy S II trade-ins is because of consumers switching over to the Samsung S III, the latest in its line of smartphones.
Global Equities’ Trip Chowdry via CNN said: “Following Apple and Samsung August 24th verdict, customers rushed to buy Samsung Galaxy S III this weekend, with some stores reporting stock outs.”