Mobile phones are famous for not holding their value for long but whenever the networks upgrade the older mobile phones lose most of their value. In 2010 the networks upgraded from 3G to 4G and all the mobile phones running on 3G technology lost their value in a few months.
The introduction of 3G
The mobile phone affected the most because of 4G was the iPhone 3G. iPhone 3G took the market of smartphones with a storm but as soon as the iPhone 4G was launched the iPhone 3G just felt like a slow and unwanted mobile phone.
In the last 10 years, mobile phones have been upgraded at a rapid pace and from the 24-month product life cycle, mobile phones have hit an all-time low product life cycle of almost 18 months.
In 2019 most of the networks in the advanced countries have already started upgrading their networks and have started heavily advertising the benefits of 5G. In the UK all major networks including EE, Vodafone, O2 and virgin media have already started offering 5G services in almost all major cities of the UK.
In 2010 the mobile phone industry was not as saturated as it is today and the network providers were not as aware of the response of new network up-gradation but now, they are fully aware of the implications of network up-gradation and its impacts on the masses. That’s one of the reasons now all the networks are fighting to win the race of getting the networks upgraded to 5G.
4G and 5G
When 4G was launched it was used across the countries and it worked very well even in remote areas whereas it seems not to be possible when it comes to 5G technology.
Currently, 5G is expected to be using antennas closely placed so that the expected speed can be offered. There is no doubt about the fact that 5G networks need few years to reach maturity where we can see them producing desired results. To make the 5G signals stronger the networks need few more years.
As far as now is concerned most of the networks are spending billions to upgrade their network but the results need to come as of now. Having said all that most of the cities in advanced countries are closely netted and they are not too many remote areas so 5G will have an immense impact on the value of 4G mobile Phones.
The 5G network is about to change the world we live in as the Augmented reality and Virtual Reality which were a subject of science fiction will become a reality and mobile phones with sensors to emit light so that virtual imagery can be developed would become a norm.
What do you need to do?
According to a mobile phone recycling company based in the UK, Rapid Phone Buyer, the value of all mobile phones equipped with a 4G modem are about to lose the majority of their resale value.
The upgrade of networks is taken as a big opportunity by all mobile phone manufacturers and networks to capture a new market segment and are making efforts to win the race of capturing g maximum customers.
Currently, the networks are advertising 5G to offer 10 times better speed than 4G which sounds very attractive for mobile phone users. Although there are very few mobile phones equipped with 5G modems which are necessary for a mobile phone to benefit from the speed and quality offered by 5 G networks.
Drop is Expected.
The demand for older mobile phones will soon hit rock bottom in the Western countries but are expected to be used for few years to come in third world countries where 5G will take few years to get full coverage.
Unfortunately, even the most expensive iPhones available in the market in 2019 are not equipped with 5G modem whereas Samsung and Huawei have already launched quite a few models equipped with 5G modems and keeping this in mind, it can be anticipated that the biggest losers of 5G would be Apple as all Apple mobile phones will lose most of its value even the latest iPhone 11 will lose most of its value by the time the new iPhone will be launched in 2024.
So, it can be anticipated that if you have a mobile phone to sell, you should sell it now before the value drops the rock bottom within the next few months especially if you live in an advanced economy such as UK and US.