6/23/2010 12:30:00 PM
Traders: iPhone 4 may force out 3GS
The iPhone 3GS will drop in price and could even become ‘obsolete’ now that the iPhone 4 is on sale, traders and distributors have warned.
The grim forecast comes after the announcement of the iPhone 4 at the start of June caused a dramatic decline in the value of the 3GS, with stock of the 16GB and 32GB models ‘drying up’, according to sources.
However, demand for the 16GB and 32GB versions of the 3GS handset had been out-stripping supply in May, according to data supplied by trading platform Phonelot.com.
During May, the price of the iPhone 3GS on Phonelot.com had increased. Prices for the 8GB version rose by 3.2%, the 16GB version by 2.1% and the 32GB version by 3.8%.
But when the new iPhone was announced on 7 June,
the trading platform saw supply and demand drop dramatically, with the 8GB version not even doing enough sales to generate data.
Meanwhile, the price of the 16GB and 32GB versions fell by 7.3% and 8.1%. Prices continued to fall the following week, by 1.66% and 2.84% respectively.
One source said: ‘The market is waiting to see what happens with the iPhone 4. People are sitting on the 3GS and will start trading again on 24 June.’
Phonelot.com project manager Dan Quinn said: ‘One major consideration for traders is whether or not the difference between the iPhone 4 and the iPhone 3GS will be so extreme that the 3GS could become obsolete overnight. In July 2009, Apple launched the 3GS model to take over from the existing 3G phone.
‘On this occasion, the difference between the two models was relatively minimal and demand for the 3G model remained high. In contrast to this statistic, the original iPhone disappeared overnight after the launch of the 3G version. Phonelot recorded a decrease in requests of up to 85% for the original iPhone between June and July 2008.’
However, others trading on a smaller scale said they are expecting the 3GS to hold its value, unlike the 3G model after the 3GS was released.