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Canadian iPhone price increase leads to surge in secondhand iPhone 5C, 5S sales

More Canadian consumers are choosing to buy older iPhones following a price adjustment that saw Apple and some Canadian carriers increase the price of the iPhone 6 and 6 Plus. Justin Sullivan/Getty Images

TORONTO – More Canadian consumers are choosing to buy older iPhone models following a price adjustment that saw Apple and some Canadian carriers increase the price of the iPhone 6 and 6 Plus.

The price adjustment, which took place in March, was made to account for the falling Canadian dollar.

In the month since the price increase, used iPhone marketplace Orchard has seen a 55 per cent increase in sales – many of which have been older iPhone models, including the iPhone 5C and 5S.

READ MORE: Toronto startup aims to take the hassle out of selling your old iPhone

“The recent surge in the US dollar is responsible for these hikes, making these coveted devices even further out of reach for many Canadians. iPhone’s that are subsidized by Canadian carriers have also increased prices to reflect the currency disparity,” said Bruno Wong, co-founder of Orchard, a Toronto-based startup.

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Here is a breakdown of the price increase:

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For iPhone’s without a contract:

iPhone 6:

  • 16GB: $839 (was $749)
  • 64GB: $969 (was $859)
  • 128GB: $1,099 (was $969)

iPhone 6 Plus:

  • 16GB: $969 (was $859)
  • 64GB: $1,099 (was $969)
  • 128GB: $1,229 (was $1,079)

Rogers, Bell and Telus are all currently offering the entry-level iPhone 6 for about $350 on a two-year contract.

Wong said that consumers are becoming savvier about their smartphone purchases in light of the rising prices.

“What we know is that the 5C and the 5 are very similar – the only difference really is the plastic back [on the 5C] – so we tell [our customers] that the iPhone 5 isn’t obsolete yet. We generally steer customers to a phone that will last them a couple of years,” Wong told Global News.

“Some people just don’t see the value in buying the brand new shiny technology – they aren’t so techy that they need that.”

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Wong said that smartphone makers may be hurting themselves in the long run by releasing phones that get more and more expensive.

“We are seeing this now with the iPhone 6 and 6 Plus – the newer phones that come into the market are even more expensive than their predecessor,” he said.

“A lot of people just don’t want to pay that, especially when older phones are very competitive.”

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