"Maximizing Profits Through Inventory Age: A Case Study on Novetta Wireless and the iPhone 11"
In today's fast-paced and rapidly evolving technological landscape, electronic devices are constantly being upgraded and retired to keep up with the latest advancements. This has resulted in a massive amount of electronic waste and the need for proper recycling and disposal solutions. At Novetta Wireless, we offer a certified recycling process that not only helps companies minimize their environmental impact but also provides an opportunity to maximize profits through our asset remarketing program.
One crucial factor in determining the value of electronic assets is inventory age. This metric calculates the age of inventory in days and is determined by dividing the average inventory cost by the cost of inventory and then multiplying by 365 days. Inventory age is a crucial factor in determining the optimal time to remarket electronic assets, as it can have a significant impact on the value of those assets.
Let's take the example of the iPhone 11, which was released in September 2019. At that time, the retail price for a new iPhone 11 was around $699. Now, fast forward to September 2020, one year after the release of the iPhone 11. The retail price for a new iPhone 11 had dropped to around $599, a decrease of $100 or 14% in just one year.
For companies that purchase electronic devices like the iPhone 11 in bulk, this decrease in retail price can have a significant impact on the value of their inventory. Let's say a company purchased 1,000 units of the iPhone 11 for $599 each, totaling $599,000. If the company held onto those units for one year without remarketing, the value of their inventory would have decreased by $100,000 to $499,000, assuming the retail price remained stable.
In addition to the decrease in retail value, maintaining inventory also comes with additional costs such as storage, insurance, and transportation. These costs add up over time, further reducing the value of the inventory. By leveraging Novetta Wireless's R2v3 certified recycling process and asset remarketing program, companies can optimize their inventory management and maximize their profits by selling their retired electronic assets at the optimal time.
By monitoring inventory age, Novetta Wireless can help clients identify the optimal time to sell their electronic assets. The longer assets remain in inventory, the greater the potential for depreciation, which can significantly impact their value. With our expertise in the industry and advanced remarketing strategies, we can help clients get the best possible value for their assets.
In the case of the iPhone 11, if the company had worked with Novetta Wireless to remarket their inventory at the optimal time, they could have potentially received a higher return on their investment, offsetting the costs associated with upgrading and retiring their electronic devices.
At Novetta Wireless, we are committed to providing our clients with innovative solutions that deliver maximum value while minimizing their environmental impact. By leveraging our expertise in the industry and our R2v3 certified recycling process, we can help companies optimize their inventory management and maximize their profits through our asset remarketing program. Contact us today to learn more about how we can help you achieve your environmental and financial goals.