It has been approximately a month since the first iPhone 6 was sold in Singapore. Price for this prized gadget soared above S$2,000 within the first few days of launch and even after one month, the prizes still remain relatively high in the secondary market. Popular mobile retailers like Mobile Square turn re-contracted phones that consumers do not want into prized possessions for those that do. Are resellers in the wrong though?
Buyback for iPhone 6 (16GB) begins at S$700 and it goes up to S$1,000 for the iPhone 6 Plus (128GB). These same phones go for sale at S$1,000 and S$1,600 respectively at Mobile Square, resulting in a profit that ranges from S$300 to S$600 per piece. While it sounds like mobile retailers like Mobile Square are making a sweet profit from being a middleman, it is facing increasing competition from platforms such as Carousell which connects buyers and sellers while eliminating intermediary costs. Additionally, there are overheads and inventory risks that a mobile retailer will have to undertake and absorb.
Can we then say that the mobile retailers are "ripping us off"? Consumers are only paying a premium between S$12 and S$162 for the iPhones when compared to the standard retail price on Apple.com so I personally feel that the premium is justified. If you are in desperate need/want of a new iPhone 6 (or iPhone 6 Plus), head down to MobileSquare and get yourself one!