When I was buying basketball shoes in my early twenties, I always asked the staff at Foot Locker for last year’s Air Jordans. I couldn’t care less about having the latest shoe. I liked Nike because it was light and cushiony. I needed ankle protection and I needed any help I could get on my first step more than I needed patent leather. While the latest shoe might actually have been a bit lighter and even more cushiony, I knew the price was inflated by the kids who wanted the latest thing (and patent leather) and the price of last year’s shoe was deflated versus its true functional worth because all those kids didn’t want it.
The iPhone 6 looks awesome. I would never want to pretend otherwise. It has huge functional benefits. I wish we supported it today and I can’t wait until we do. It is a great day for early adopters.
But it is also a great day for bargain hunters.
It is always helpful to remind ourselves that while the new product is better, the old one hasn’t gotten any worse. That seems obvious. But we tend to think about everything in relative terms.
The iPhone 5, 5c and 5s are still absolutely great.
And while last year’s Air Jordans saw just a decrease in demand, used iPhone 5’s will enjoy both a decrease in demand and an increase in supply. All the folks grabbing the new iPhone 6 in the next couple of weeks will be listing their iPhone 5’s on markets like eBay, Amazon and Glyde.
Does anyone remember what happens when demand goes down and supply goes up? Anyone? Very good!
Apple and the cariers have already dropped the prices of the un-used iPhone 5’s. It may take the secondary market a little longer to adjust to these forces. But it won’t take long.
Meanwhile, happy bargain hunting! With the all the money you save, you might even be able to treat yourself to the latest Maison LeBrons.