The Mythical Apple iPad Tax

Just checked out resale of the original Nexus 7 versus the original iPad mini according to NextWorth.com. Mind you that you can probably sell your devices for more on craigslist or ebay.com, but here you go:

First-Gen Nexus 7 with WiFi & 16GB storage: $26

First-Gen iPad mini with Wifi & 16GB storage: $165

That's a difference of $140. The iPad mini ran $329 originally. The Nexus 7 @ 16GB debuted at $249, but the price was later dropped to $199. Let's give the Nexus 7 buyer the benefit of the doubt and assume they paid $199.

Nexus 7: $199 sales price - $26 resale price = $173 cost to own

iPad mini: $329 sales price - $165 resale price = $164 cost to own

Seems to me that the iPad mini is not only cheaper but was reviewed as a better tablet. It also lacked that horrible performance slow down that was prevalent until Google released Android 4.3 to correct the issue almost a year after the Nexus 7 launched.

UPDATE: The same holds true on eBay with iPad mini @ 16GB WiFi selling for as much as $280 on auction while 2012 WiFi 16GB Nexus 7 sells for as much as $140 on auction. The $140 price difference holds, but Nexus 7 owners would do well to avoid NextWorth since their markup is apparently right around $110 which eats most of the resale price of the Nexus 7.

For smartphones the gap is much more narrow for last-generation models, but the Apple devices are still worth more on resale:

iPhone 5 with 16GB (AT&T/GSM): $190

iPhone 5 with 16GB (T-Mobile/GSM): $159

Galaxy S III with 16GB (T-Mobile): $135

Galaxy S III with 16GB (ATT&/GSM): $130

Nexus 4 with 16GB (T-Mobile/GSM): $130

If we compare models that are two generations old (i.e.: folks upgrading after two year contracts expire):

iPhone 4S with 16GB (AT&T/GSM): $133

iPhone 4S with 16GB (Verizon): $118

Galaxy S II with 16GB (AT&T/GSM): $65

Galaxy Nexus with 16GB (Verizon): $33

UPDATE: If it is not clear to some readers, the differences in the resale price of smartphones for Apple do not bear out their higher prices. At least not when compared with the recent Nexus models. Unless you are purchasing an iPhone on a subsidized contract and would have paid the same monthly fees to your carrier regardless, then you are going to pay more to own an iPhone. This is likely why sales of iPhone in countries that do not traditionally used subsidized contracts is trailing Android by such a wide margin.