Why a Franchise Selling Used iPhones Can Be a Lucrative Business

Posted on Aug 7 2018 - 3:52pm by Business Day TV

Man pointing on franchise shopA computer shop franchise that sells used Apple products is a good idea for aspiring business owners in Australia, especially since iPhone users are likely to be more affluent.

Unlike other smartphones, pre-owned iPhones still fetch for a high price. The iPhone X serves as an example. The average resale price of the unit cost 85 per cent of the original value, while buying in bulk remains expensive at 75 per cent of a new unit’s price.

Resale Value

B-Stock, a liquidation research specialist, said that previous versions of the iPhone still sold for 65 per cent of the original price — meaning individual and authorised dealers can still make money out of selling old units.

However, the high-end of the iPhone X has been a new record for resale value. Its listed price in Australia cost at least $1,800. Despite the steep price, more Australians continue to patronise Apple devices. This opened a profitable market for repair and maintenance services.

Richer Users?

A study from the National Bureau Of Economic Research showed that around 69 per cent of iPhone users in the US belong to the top income bracket. Given the price in Australia, it is safe to assume that owners of an iPhone X are well-off.

Others who simply got their own unit may have saved money, so the high price makes them more likely to seek repairs instead of replacing the units. This is not as common for Android users, due to the price of repairs sometimes exceeding the cost of a brand new phone.

The iPhone can be considered a status symbol on its own while owning Macs and other Apple products likely reflect your financial status. Whether or not Apple users are richer, the fact remains that there is an opportunity to make a business from repairing these gadgets.

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