eBay Prices for iPhone 5C vs iPhone 5S

eBay Prices for iPhone 5C vs iPhone 5S

The analysis is being carried out based on the sample data collected from online auction eBay for the successfully finished listings.

After the initial data was pre-processed the final sample has been reduced to 3180 listings of iPhone 5S and iPhone 5C during the 9 day period from March 22 to March 30 2014. The results of the listings distribution for auctions are below:

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This data is quite interesting, as it points out that the more expensive and more premium iPhone 5S is selling more actively than the cheaper iPhone 5C.

In reality, this was supposed the over way around, as the iPhone 5C was meant to be more mass appealing to the public due to its lower price and hip design.

This initial finding could indicate, that selling a cheaper version of a product alongside its premium counterpart could not be worth it.

It is not only happening on consumer level. Distribution channel members, whether at the wholesale or retail level also develop certain perceptions about the kinds of products with which particular manufacturers are associated.

To analyze this theory further the amount of listings for new and used phones has been compared for both models.

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The results listed above provide us with another hint, that the people were not pleased with iPhone 5C in the first place.

Both models came out in the same time and were available for sale since September 20, 2013. Yet, the number of used iPhones 5S sold on eBay is almost equal to the number of new phones sold of the same model (1002 vs 996). For the cheaper model, though, the difference between the used and new listings is higher by 56% (720 vs 462). People clearly looking to sell their iPhones 5C and get something else.

Finally, we have analyzed the price for new phones of both models.

In this analysis, only phones with storage of 16GB and 32GB were taken into consideration. Before the final numbers were analyzed, the outliers were removed to make analysis more cleaner (z-scores were used to identify outliers). The outliers were not taken into consideration. For the remaining phones sales the findings were as follows:

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The above table shows, that on iPhone 5C model is being sold for  -16% discount to the official price available on the Apple store website. At the same time, on average 5S is being sold only for a -2% discount to the official price.

Takeaway

Apple used its brand name on a cheaper version of its flagship phone hoping to gain a bigger market share. They used their regular distribution channels and marketed product to the same people to whom they market their more expensive and feature rich model. It didn’t work. People were not pleased with 5C model. 

At least based on eBay sales data.

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