Timing an iPhone purchase

Consumers looking to save on new models need to wait 6-12 months to get a better deal, according to iPrice study

The iPhone 11 will make its debut in Thailand on Oct 18, and some hardcore fans will be queuing at stores to be the first to own one. But many others will be waiting in hopes the high prices associated with Apple hardware will start to fall. The question is, how long will that take?

The iPhone 11 will be priced starting from US$699, whereas the iPhone XR started at $749 when it was announced in October last year. Some consumers are not price-sensitive, but others know that whenever Apple releases a new phone model, it cuts the prices of older ones, and they look for bargains.

Based on that understanding, iPrice Thailand, the local unit of the regional online shopping aggregator based in Malaysia, researched regional iPhone prices — especially the 7, 8, X and XS. It was looking for patterns in price declines after the release date and found the following:

„ •You need to wait three years to get an iPhone for half-price. Three years after its release, the iPhone 7 price has fallen by 55%.

„ •Prices of iPhone models start dropping six months after their release, but only by an average of 5%.

„ •The average iPhone price dropped 16% from the initial price tag within 12 months of its release.

„ The iPhone X showed the biggest price decline: 11% after six months and 27% after 12 months. This happened because Apple discontinued the model after one year and changed its focus to the iPhone XS.

If recent trends are any guide, the iPhone 11 probably will be more affordable starting six months from now.

iPrice has also been tracking the prices of previous flagship models offered by online merchants across the region in 2019. Here is what it found:

„ •iPhone 7: From January to June 2019, it was one of the top iPhone models with a price increase of 9%, but then the price fell 10.8% in July and 30% in August.

„ •iPhone 8: The price of this model decreased by 8% in June. It fell in July by 21% and 39.4% in August.

„ •iPhone X: The price dropped slightly by 3.6% in June, but then fell 36.2% in July and 45.8% in August.

„ iPhone XS: The price dropped by less than 1% in June but fell 7% in July and 8.1% in August.

With new iPhone models released in the fourth quarter, buyers should look to the previous quarter when bigger price cuts are seen before new models are unleashed.